With the UK Government’s AI Opportunities Action Plan aiming to cement the country as a global leader in artificial intelligence, the West Midlands is already taking significant steps in that direction. The plan, launched earlier this year, highlights how AI can modernise public services — and private sector companies across the region are responding to the call with enthusiasm.

According to KPMG’s Private Enterprise Barometer, published in December, 83% of West Midlands private firms are planning AI investments — well above the national average of 73%.

Andy Bostock, Senior Partner at KPMG, said:

The West Midlands, with its strong roots in engineering and manufacturing, is well-positioned to reap the benefits of AI. From optimising supply chains to enhancing talent acquisition and predictive maintenance, AI applications are already transforming business models.

A recent joint report by KPMG and UKTN found that accelerating AI adoption across manufacturing and engineering will be essential to meet the region’s tech sector goal of reaching a £100 billion valuation by 2030.

The region is home to over 300 AI-focused businesses employing more than 11,000 people, forming one of the most dynamic digital clusters in the UK. Yet, Bostock stressed that the journey is just beginning.

To fully harness AI’s potential, businesses must establish strong, adaptable data frameworks and integrate AI solutions that align with their existing operations. This includes practical tools like chatbots for customer service, predictive analytics for inventory management, and AI-driven insights for marketing and long-term planning.

Andy Bostock added:

As the region doubles down on digital transformation, Bostock believes cutting through the AI hype and focusing on measurable outcomes will be key to unlocking its full potential.