West Midlands Poised to Lead UK’s AI Revolution, Says KPMG Partner

By Anushka Malhotra

1 minute 29 seconds

Growth

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Quick Read: AI investment is booming in the West Midlands, with 83% of private firms planning adoption. KPMG’s Andy Bostock highlights how the region’s manufacturing and tech strengths make it ideal for AI-driven growth.

Private firms in the West Midlands are outpacing the rest of the UK in their plans to adopt artificial intelligence (AI), positioning the region at the forefront of digital innovation, according to KPMG’s Andy Bostock.

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 most successful companies are those viewing AI not as a cost, but as a strategic investment in long-term growth and resilience.”

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:

“Real business value comes from identifying where AI can enhance existing strengths. It’s not about starting over, it’s about getting smarter.”

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.

What's new

DigiSpinWM Pilot Celebrates Milestone as 11 Investor-Ready Innovations Emerge in the West Midlands

The DigiSpinWM pilot programme, a bold initiative designed to accelerate the spin-out of digital and advanced manufacturing innovations in the West Midlands, has marked a key milestone with a showcase event in Birmingham, unveiling 11 investor-ready ventures developed over the past six months.

Transforming Ideas into Investment Opportunities

Backed by Research England and delivered through a partnership between the University of Wolverhampton, Coventry University, and Birmingham City University via the West Midlands Combined Universities, the programme set out to test a collaborative model for commercialising innovation more efficiently and effectively.

In just six months, DigiSpinWM has:

- Assessed over 40 high-potential technologies for commercial viability
- Delivered tailored support to participants on spin-out strategy and intellectual property development
- Nurtured 11 ventures to investment readiness
- Developed a shared framework for technology transfer across participating universities

The recent showcase celebrated these achievements, spotlighting innovations spanning early-stage development to near-market solutions with the potential for significant societal and economic impact.

A Regional Model for Innovation

Ceri Jones, Director of Research & Enterprise at the University of Wolverhampton, reflected on the programme’s success:

The DigiSpinWM pilot has been a transformative journey. Seeing 11 investor-ready ventures emerge from such a collaborative, regional approach shows what’s possible when we unify efforts across institutions. These spinouts will drive real-world change and position the West Midlands at the forefront of digital and advanced manufacturing.

The pilot’s success is also credited to a strong ecosystem of academic mentors, business advisors, and industry reviewers who provided essential support and guidance to participants.

The showcase event featured live pitches from select ventures to an audience of investors, stakeholders, and innovation leaders, marking a key step towards unlocking the funding required to bring these innovations to market.

With the DigiSpinWM model proving its value, the programme signals a new chapter for spin-out activity in the West Midlands—one built on collaboration, shared infrastructure, and investment-ready innovation.

By Anushka Malhotra

8 Jun