There are plenty of reasons for optimism in 2025 according to ScotlandIS, the membership and cluster management organisation for Scotland’s digital technologies industry.
Growing demand for AI skills, a fresh look at hybrid working, standardised security practices and a heightened focus on green data centres are all on the Scottish tech agenda for the next 12 months. And, despite a series of economic challenges making for less than smooth sailing in 2024, sector leaders remain positive about what the new year holds.
The senior team at ScotlandIS has provided its top predictions for 2025, taking a closer look at the biggest opportunities, and challenges, for Scottish tech in the coming months.
Developing Scotland’s AI skill set could keep the nation on the front foot
AI has continued to be a dominant topic throughout 2024 and that doesn’t look likely to slow down as we move into 2025. But, as the dust from the adoption hype starts to settle, businesses are realising there is a severe lack of core skills needed to take full advantage.
Karen Meechan, CEO at ScotlandIS said: “For years, AI has been the buzzword on everyone’s lips. This year we’ve seen a real gold rush as businesses raced to adopt a whole range of AI tools. But, as the initial excitement fades, businesses are left grappling with a significant skills gap that is preventing them from making the most of their technology. As organisations look to streamline how they use these tools, we’re starting to see focus shift away from ‘what’ AI can do, to ‘how’ it can meet specific business needs.
“Moving into the new year, the need for upskilling will prompt a rise in AI centric training, but, as a sector, we must always focus on the long-term solution. In the next 12 months, I hope to see closer links with industry and academia to ensure the skills being taught in our schools and colleges can meet industry demand and secure its long-term growth.
“Without a continuous commitment to developing Scotland’s AI skill set, we are at risk of being left behind, something the nation can ill afford.”
Remote work could hamper skills development if left unaddressed
It’s fair to say hybrid working isn’t going anywhere anytime soon; but it’s not without its challenges. While flexible working is valued, limited collaboration and opportunity to learn from more experienced colleagues has proved difficult for businesses, particularly when it comes to training junior and mid-level staff.
Nicola Taylor, chief operations officer at ScotlandIS said: “It’s a bit of a Catch-22 position. Tech leaders need more people in the office to support junior staff and encourage more collaboration. But if they enforce stricter mandates, they risk losing talent to companies offering more flexibility. On top of sky-high rent prices and increased national insurance contributions, it’s a tricky time for businesses.
“For better or worse though, hybrid working is here to stay, at least for the foreseeable future. And if employers fail to take responsibility for nurturing future leaders, remote working could create a significant bottleneck in the talent pipeline. The Scottish tech sector is undoubtedly an area of growth, and developing a robust talent pool is essential to sustaining that. As an industry, we must take responsibility for finding a better balance that offers a flexible approach, without compromising on training and skills development.”
Scotland must seize the opportunity to be a global leader in green data centres
Scotland’s climate, geography and impressive renewable energy capacity all make it well positioned to be a global leader in the development of more energy efficient, sustainable, green data centres. However, as the market quickly attracts international interest, the window of opportunity won’t remain open for too long.
David Ferguson, cyber development lead and head of data at ScotlandIS said: “With Sweden and the US already making waves in sustainable data centres, the market is drawing interest from across the world. While Scotland’s geography and green energy production puts it in good stead, the nation will require significant upgrades to infrastructure and connectivity if it is to meet growing demand.
“Scotland’s 97% renewable energy capacity presents a unique and timely opportunity to position ourselves as a leader in this field. And, with UK data centres being recognised as Critical National Infrastructure (CNI), a deeper focus on security and cyber resilience can only make us more attractive for foreign data investments. This could give Scotland a significant advantage in the global ladder, but we must act quickly.”
Standardised security could level the playing field against attackers
With multiple security incidents, such as Crowdstrike, the Ticketmaster hack and the NHS breach, 2024 saw an increase in the sophistication and diversity of cyber attacks. Driven largely by the use of emerging technologies, these instances can result in devastating, and costly, long-term implications for those affected.
Beverly Bowles, head of cyber at ScotlandIS said: “Looking ahead to 2025, the same technologies that have worked so well for hackers could be instrumental in combating the evolving threat landscape by enabling more advanced detection and response efforts. However, without standardised security practices, the rapid integration of these tools risk accelerating cyber threats, potentially giving attackers the upper hand.
“Emerging technologies like AI and machine learning are already transforming the way we work. But, as amazing as some of this tech is, it’s a double-edged sword. In other words, the bad guys are using them too, and it’s working well for them.
“Poor communication between providers, insufficient tools, inadequate backup and a lack of clarity around ownership during attacks are key challenges that come up for our members time and time again. What’s more, insufficient regulation can make those challenges even more difficult to overcome.
“As we look to 2025, I hope to see more businesses bringing cyber conversations to board level, rather than it being something only the IT teams need to worry about. If harnessed strategically, and within regulation, these tools could be revolutionary in combatting attacks and ensuring resilience across the entire supply chain.”
