Businesses in Greater Birmingham have been warned “doing nothing is not a safe option” when it comes to the adoption of AI.

The opportunities and risks around new technologies were in focus at a launch event for the Chamber’s Q2 Quarterly Business Report, hosted by Birmingham City University.

Around 90 delegates at the Curzon Building heard that businesses who aren’t yet investing in AI run the risk of being left behind.

Tom Haworth, founder of Birmingham-based software development company B13.AI, said: “The return from AI is one of the easiest things to measure because you’re saving people’s time.

“Businesses are sitting there and thinking: ‘I don't have money to invest in AI, so I'm going to sit here and do nothing’.

“Well, actually, it doesn't cost that much to start to take that helicopter view to analyse your business and identify the areas of your business where  AI is going be able to save you money.

“It will increase the money you have to invest in other areas. So, I would suggest that the right thing to do is not to do nothing, but to take some time to analyse what it is that AI can do for your business.

“And then at least you know when you do have some money, you can invest it effectively to make the most impact.

“I would suggest that sitting there waiting to see what the big people are doing, and then, and then adopting that…by then, it's going be too late.”

Professor Hanifa Shah, Birmingham City University’s Pro Vice-Chancellor for Research, Enterprise, Engagement and STEAM, agreed that firms cannot afford to wait.

She said businesses can partner with universities to create a low-cost roadmap to AI adoption.

“Tom is absolutely right - doing nothing is not a safe option,” said Professor Shah.

“There are low-cost ways to start looking at what it might mean for your organisation - and that's where I think BCU and organisations like us come in.

“There’s absolutely nothing stopping anybody taking that first step - partnering with us won't cost you a lot at all.”

Meanwhile, Phil Bindley, field chief information security officer at Intercity, spoke of the challenges businesses face in managing cyber threats as a result of AI.

Pointing to the recent cyber-attack on retail giant Marks & Spencer, Phil warned all firms must be aware of the risks – no matter their size.

He talked through how Intercity are using AI to bolster cybersecurity by making it more efficient for firms they work with.

Phil said: “The biggest sector investing and spending time getting to grips with Artificial Intelligence is cyber criminals.

“We've already seen evidence in the wild of malware that has been written to avoid detection using AI prompts.

“Cyber criminals are indiscriminate – they don't care how big or small you are.

“They are businesses. This notion that there's some kid in a hoodie sat behind a keyboard hacking away is for the birds.

“These are organized businesses. They have HR departments. They recruit actively. I've seen recently on a particular Telegram channel where one of the hacker groups are looking for AI and machine learning engineers.

“All they're interested in is your money and making money from you. If you're a business and you've got data and you've got money in the bank, you're a target.”

Sponsored by Birmingham City University, the GBCC’s Quarterly Business Report provides an up-to-date snapshot of the performance of the Greater Birmingham business community.

It is the most comprehensive regular report of its kind in the city region.

The GBCC’s head of policy Emily Stubbs presented an overview of the Q2 report, which reveals caution among businesses as a result of National Insurance hikes and Donald Trump’s tariffs.