Sixty-seven per cent of West Midlands businesses already using AI say it has created new jobs in their firm, while 61 per cent of all firms in the region plan to increase investment in AI to upskill their workforce in the coming year.
Of those increasing investment, 33 per cent expect to spend between £25,000 and £100,000, while 23 per cent expect to spend between £100,000 and £250,000.
While 61 per cent of West Midlands businesses say their workforce has the AI skills needed, 29 per cent say it does not.
Overall, 62 per cent of the region’s firms say they currently use AI.
53 per cent of West Midlands firms say that businesses which fail to adopt AI in the next three years will be at a competitive disadvantage, suggesting AI is increasingly viewed as a competitive necessity.
Businesses in the region using AI cited cost (21 per cent), security concerns (20 per cent) and access to skills (15 per cent) as the main challenges to getting greater value from AI.
Dave Atkinson regional director for the West Midlands at Lloyds, said: “The West Midlands has always been a region shaped by innovation, so it’s no surprise to see businesses here already putting AI to work in an effective way.
“What stands out is the link between adoption and job creation. For many firms, AI does more than improve efficiency; it helps them develop new skills and think differently about how their teams operate.
“Now businesses need to ensure they can access the skills, support and confidence they need to keep pace. With six in 10 firms planning to invest in AI upskilling, there’s a clear appetite to build on this momentum.”
Nationally, more than half of UK businesses (54 per cent) say AI has created new jobs, and 58 per cent plan to invest in AI skills.
31 per cent say their workforce does not yet have the AI skills needed and 58 per cent of UK firms say businesses risk falling behind competitors if they fail to adopt AI.
For UK businesses overall, cost, data quality and skills are the biggest barriers to getting more value from AI.
Lloyds is also investing in its own AI capability. In June, the Group announced plans for more than 1,000 AI-related roles in 2026, including almost 300 agentic AI-related roles and one of the first Level 6 AI Engineering apprenticeships by a UK bank.
More than 400,000 AI Academy courses have been taken since January, with over 65,000 colleagues completing training on working responsibly with AI.
