The road to ruin is paved to a great extent by slabs of good intentions lacking durable foundations, quickly creating stumbling blocks and pitfalls along the path to a better future.

This has led to a paradox at the heart of Scotland's economy as we head into 2026. On some measures, business confidence has improved despite several bruising years of rising costs and feeble customer sentiment. But while most firms understand the way forward, many are caught in a trap where they simply can't do what needs to be done.

The clarity of purpose when it comes to skills and training is reflected in survey results from the latest business barometer produced by the Bank of Scotland, in which 46% of Scottish firms reported that they will be focussing on upskilling their people in the coming year. Another 44% will be looking to enhance their use of technology.

Despite the investment froth around AI, artificial intelligence is delivering some productivity improvements and will continue to do so.

New research published today by accountancy group Deloitte's found that 59% of finance chiefs across the UK have become more optimistic during the past 12 months on the potential for AI to boost the performance of their organisation, up from 39% in the third quarter of 2024. But employers also increasingly understand that output, competitiveness and innovation ultimately depend on their people, and their ability to put technology to its best use.........

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