ScotlandIS sets AI, skills & cyber priorities for 2026

Scottish technology industry body ScotlandIS expects artificial intelligence, skills development, green data centres and basic cyber hygiene to shape the country's digital economy in 2026, as sector leaders balance optimism with concerns over political and economic uncertainty.

The organisation said Scotland's ambition in AI and data-intensive industries will depend on investment in infrastructure, a shift in workplace training, and a stronger focus on cyber resilience. Senior executives at ScotlandIS set out their views on the main opportunities and risks facing the sector over the next 12 months.

AI beyond the hype

ScotlandIS said Scotland's tradition of scientific innovation gives it a window to build strength in AI. It warned that many businesses still approach the technology as a collection of tools rather than as part of wider business planning.

"Scotland has all the makings of a powerful AI leader. But right now, too many organisations still equate AI adoption with tools, not strategy. And with around 85% of AI implementations failing due to poor data foundations and unclear use cases, the risk - particularly for SMEs - is significant. The hype cycle is pushing businesses to move too fast and we're starting to see that what we really need is clarity, strong governance and a focus on genuine value," said Karen Meechan, CEO, ScotlandIS.

Meechan expects demand for AI-specific roles to rise as organisations look for specialist knowledge. She said the sector must emphasise long-term planning rather than short-lived projects driven by hype.

"Moving into the new year, the need for specialist knowledge will prompt a further rise in AI-specific roles. But, as an industry, we must always focus on the long-term solution and right now, that is getting over the hype cycle," said Meechan.

She said Scotland needs more computing capacity and sovereign data infrastructure so that data can remain within the UK. She framed this as a requirement for AI systems that meet ethical, compliance and security expectations at scale.

"In the next 12 months, I hope to see Scotland invest in the foundations that make AI possible. We talk about wanting to be a nation at the forefront of AI, but that requires far more compute capacity and sovereign data infrastructure so our data can stay securely within the UK, rather than being outsourced. This isn't just a technical requirement, it's a prerequisite for ethical, compliant and responsible AI at scale. Meaningful progress in 2026 will only come from strategies that are grounded in business outcomes, prioritise data quality and privacy and embed strong guardrails around ethics and security," said Meechan.

She linked Scotland's prospects in AI to workforce development and the alignment of education with industry needs.

"Beyond infrastructure, reaching Scotland's potential hinges massively on skills, particularly for new and emerging roles. We expect a bigger uptick in AI-specific jobs in the new year, but we need to make sure that we're aligning the skills of our graduates and current employees with the sector as it's moving. That doesn't mean eliminating jobs, it means upskilling workers for a new age. AI won't increase unemployment if we do it right, but that means investing in supporting staff to develop new skills that enhance their existing skills and prepare them to make the most of emerging technologies, including but not limited to AI.

"If Scotland gets this right, AI could be transformative, not just for the tech sector but for the Scottish economy more broadly. But we will only unlock that potential if we move beyond the hype and focus on the skills and infrastructure needed for long term growth."

Skills pipeline pressure

ScotlandIS said the long-running skills shortage is now emerging in a different form. It highlighted concerns about a bottleneck at mid-career level as staff who entered the sector during the pandemic progress.

"Scotland has a lot of potential when it comes to skills. We have strong universities creating graduates who are ready to work but, if junior staff don't have the skills to progress to mid-tier roles, we'll have little entry-level positions available for our graduates. This is obviously a problem given the ongoing skills crisis the sector is facing," said Nicola Taylor, Chief Operations Officer, ScotlandIS.

Taylor said remote and hybrid patterns are likely to continue in 2026, which places more emphasis on structured development and mentoring for early-career staff.

"In 2026, remote and hybrid working models won't change, at least not for now. But in the next 12 months, I hope to see a recognition as an industry that there is a knowledge gap so we can focus on giving more junior staff the support and skills they need to move into more senior roles - regardless of where they are working from," said Taylor.

She said ScotlandIS is working with universities on shorter, more targeted qualifications aimed at practical gaps. She added that employers need to invest more directly in career progression.

"We're already working with universities to develop shorter, more focused qualifications to fill these gaps. But employers must also take responsibility for nurturing their own future leaders. Whether that's through apprenticeships or more in-person training time, I hope to see a better balance in 2026 that gives them the flexibility of hybrid working without sacrificing the core skills needed for them to progress," said Taylor.

Green data centre race

ScotlandIS pointed to data centre investments as a test of Scotland's competitive position. It cited DataVita and CoreWeave's proposed £1.5 billion renewable AI infrastructure project and ILI Group's £15 billion green data centre network as evidence of investor interest.

"The data centre market is moving at an incredible pace, driven largely by the demand for AI and, as a result, the need for storage and processing power. While it's moving quickly, Scotland still has a chance to lead but election-year uncertainty risks slowing momentum at the very moment the country needs to stand out. Nations with deeper pockets are aggressively courting tech giants and any delay in signalling Scotland's readiness could see investors look elsewhere," said David Ferguson, Cyber Development Lead and Head of Data, ScotlandIS.

Ferguson said that decisions on infrastructure could influence Scotland's wider innovation base over the coming year.

"The impact over the next 12 months could be a significant domino effect. Data centres are the engine room for advanced technologies so missing this opportunity would make it harder to attract future investment in biotech, photonics, quantum and other emerging sectors that rely on high-power computing. Scotland still has a credible path to leadership - but only if it keeps its focus sharp and moves decisively," said Ferguson.

Cyber basics under scrutiny

ScotlandIS said AI-enabled attacks and high-profile incidents in 2025 exposed weaknesses in basic cyber hygiene across supply chains. It highlighted the Jaguar Land Rover disruption as an example of risk transmission between large manufacturers and smaller suppliers.

"Regardless of how good our AI-driven defence techniques have gotten in 2025, if businesses continue to neglect the fundamentals, it could have a significant impact on Scotland as a whole," said Beverly Bowles, Head of Cyber, ScotlandIS.

Bowles said Scotland's size and interconnected economy amplify the impact of major incidents.

"The Land Rover incident showed how cyber risk can move both up and down supply chains. Given Scotland's size, all it takes is one large business to suffer a major attack to have a devastating ripple effect on the wider economy," said Bowles.

She said basic protections such as staff training could reduce exposure and support the growth of domestic security providers.

"While it might sound small, strengthening basic protections, like cyber essentials training, could dramatically reduce Scotland's exposure risk in the coming year. And importantly, getting these fundamentals right creates the foundations for our wider ambition, building a thriving market of homegrown cybersecurity products and services," said Bowles.

Looking ahead, Bowles said she wants more Scottish organisations to treat baseline cyber measures as a priority rather than an afterthought. "As we look to 2026, I hope to see Scottish businesses put strong cyber basics in place. Not only will it strengthen the resilience of our supply chain but also create the environment Scotland needs to stand out as a beacon of cyber strength and innovation," said Bowles.