Artificial intelligence (AI) is reshaping and revolutionising industries worldwide. Whether you use ChatGPT for creative inspiration, or products like Microsoft Copilot at work – AI is here, and it is here to stay. So, how can local businesses in the Highlands and Islands harness the potential of AI to drive innovation and efficiency? And what are the legal and ethical risks of using AI?

Inaugural AI Summit in Inverness

On 12 March 2025, the Scottish AI Alliance brought its AI Summit to Inverness for the first time - underlining the growing recognition of AI’s relevance to the region's businesses. A key focus was the role of AI in the hospitality and tourism sectors, which are vital to the local economy.

Discussions highlighted how AI has the potential to revolutionise administrative tasks for hospitality and tourism businesses. Many attendees saw AI as a way to ease operational burdens, with technologies such as chatbots handling customer enquiries, AI-driven systems collating and analysing customer reviews, and automated stock-taking solutions potentially streamlining inventory management. These innovations could free up staff to focus on customer experience, enhancing the human touch that remains central to the hospitality sector.

A key driver for AI adoption in hospitality is the ongoing labour shortage. Fewer people are entering the sector as a career, and AI could help bridge this gap by automating repetitive tasks. However, concerns were also raised about AI’s impact on workforce development. Some businesses worry that younger employees may become overly reliant on AI tools, potentially leading to a decline in essential interpersonal skills that are critical for hospitality roles.

In the tourism sector, AI is already being used by companies to develop custom travel itineraries, match holidays to customers, and even complete the full booking process.

Opportunities in key sectors

Beyond hospitality and tourism, AI is presenting new possibilities in other vital industries:

  • Agriculture and food production: AI-powered precision farming techniques can help optimise crop yields and livestock management, reducing waste and improving sustainability. AI-driven monitoring systems can assist in detecting diseases early, protecting valuable agricultural resources.
  • Renewable energy: The Highlands and Islands are at the forefront of Scotland’s renewable energy industry, particularly in wind and tidal power. AI can predict energy output, optimise grid distribution, and enable predictive maintenance of infrastructure.
  • Financial and professional services: AI-driven automation in legal, accountancy, and other professional services can streamline compliance, enhance customer support, and reduce administrative burdens, improving efficiency and cost-effectiveness.

Challenges and considerations

While AI presents exciting opportunities, businesses must also navigate several challenges:

  • Lack of AI training and skills development: A key concern raised at the AI Summit was the shortage of AI training opportunities in the region. Without adequate education and upskilling, businesses risk falling behind in AI adoption.
  • Ethical and regulatory risks: AI systems must be implemented responsibly, with careful consideration of data privacy, bias in AI decision-making, and transparency. Due diligence is crucial to ensure AI tools align with legal and ethical standards.
  • Balancing automation with human skills: While AI can be efficient, it cannot replace the interpersonal and problem-solving skills that define key sectors such as hospitality. Employers must ensure that AI supports, rather than diminishes, essential human interactions.

Looking ahead

The AI Summit in Inverness underscored the growing role of AI in shaping the future of the Highlands and Islands. For businesses, the key to success is striking the right balance — leveraging AI for efficiency while ensuring that human skills and local knowledge remain at the heart of operations. By embracing AI responsibly and investing in training, businesses can harness its potential while safeguarding against its risks.

Contributor

Ally Burr

Associate