North East firms must grasp AI opportunity

That was a key message from a North East Chamber of Commerce event which explored how the region can build a workforce ready for the future and translate new technology into stronger productivity and economic growth.

Held at Teesside University and sponsored by SES Technology, the event covered topics including skills development, recruitment, workplace culture and the growing impact of AI on how people work, solve problems and make decisions.

Following keynote speeches from Lord Elliott of Mickle Fell, president of the Jobs Foundation, and Tees Valley Mayor Lord Ben Houchen, a panel brought together senior figures from policy, education, technology and business:

• Claire Ainsley, director, Progressive Policy Institute and former director of policy to Keir Starmer in opposition.
• Rachel Anderson, assistant director – policy, North East Chamber of Commerce
• Darren Hankey, principal and CEO, Hartlepool College
• Evenna Ottey, senior director, AI strategy and transformation, Sage
• Kate Shoesmith, director of policy and insights, British Chambers of Commerce

Eddie Tribe, managing director of SES Technology and chair of the panel, acknowledged both the opportunities and concerns surrounding the rapid development of AI, but said businesses needed to focus on how they could respond to that change.

He said: “The question isn’t whether AI will change our future, it’s whether we’re prepared to shape it. And my hope is that here in the North East, we’re not just ready for that future, we’re helping to lead it.”

Rachel Anderson said Chamber research showed a significant shift in businesses’ attitudes towards AI, with far more companies now using the technology than just a few years ago.

However, many businesses remained concerned that they were not using it as effectively as they could, with questions around workforce skills, senior-level understanding and what AI could mean for entry-level roles.

She said: “If we can stop the ‘muddle through’ and do that skill-up, I think that will be transformational.”

In his speech, Lord Houchen highlighted the potential for the North East to play a significant role in the growth of AI infrastructure, predicting that within five years the region could have the UK’s largest concentration of data centres per megawatt.

He also pointed to devolution as a way of giving local areas more tools to tackle worklessness, including programmes designed to help young people gain experience with local employers.

Lord Elliott focused on the relationship between jobs, productivity and social mobility, arguing that businesses had a central role to play in tackling worklessness and creating opportunities.

He also highlighted how AI could improve organisational efficiency without necessarily replacing jobs, using the example of police forces deploying technology to sift through evidence more quickly and free up officers for other work.

The role of people alongside technology was another strong theme throughout the panel discussion.

Evenna Ottey highlighted the potential for AI to take on repetitive processes and free people to focus on work requiring human judgement, communication and collaboration. She also encouraged smaller businesses not to see AI adoption as a major transformation programme, but to start with specific processes or problems where technology could make an immediate difference.

Claire Ainsley focused on the importance of human capital, with education and skills needing to keep pace with technological change so people can take advantage of new jobs and opportunities.

Kate Shoesmith said businesses were increasingly adopting AI but that this had not yet translated into fundamental changes to jobs and processes for many firms. BCC research discussed at the event found 86% of employers responding said their use of AI had not changed job descriptions.

She also highlighted the need for employers, education providers and local government to work together on skills provision so training better reflects changing business needs.

Darren Hankey said colleges were already responding to demand for skills in areas including AI, cyber security and robotics, but stressed that employers also had an important role in shaping provision and creating apprenticeships and other routes into work.

Closing the event, North East Chamber of Commerce chief executive John McCabe said AI represented a major opportunity for the region, but one that would not be realised automatically.

He said: “Technology and AI are not simply a challenge to be managed. They represent such a massive opportunity for our region to improve productivity, create new businesses and open new jobs, new markets and new types of jobs for the future.

“We shouldn’t be pessimistic or passive about the future. We can’t wait for good growth to arrive. We need to be out there much more confident and we must be shaping that growth for ourselves.”

The event was the first in the Chamber’s three-part conference mini-series, marking one year since the launch of its two-year policy plan, Unlocking the North East Economy, and looking at how its ambitions can be translated into action.

The next event, Trade, Devolution and the North East’s Global Future, takes place at The Culture House in Sunderland on 1 October and will explore how the region can strengthen its position nationally and internationally.

The final event, Place to Prosperity: Culture, Investment and Growth, takes place at The Glasshouse International Centre for Music in Gateshead on 15 October, focusing on how place, culture and investment can support long-term economic growth.

For more details and to book a place, visit: Conference Mini-Series.

For more photos of the event, visit: Powering People, Jobs and AI - Conference Mini-Series Event 1 | Flickr