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Scottish technology sector shows cautious optimism as growth stabilises, ScotlandIS survey finds

  • 71% of Scottish technology businesses are optimistic about 2026, with strong sales and improving profitability underpinning resilience
  • 84% expect sales to grow in 2026, with increased demand from key sectors including energy, financial services and healthcare
  • AI adoption is now widespread, with businesses shifting from experimentation to strategic deployment to drive productivity and innovation

Scotland’s technology sector is entering 2026 with a cautiously positive outlook, as companies balance steady growth opportunities with ongoing economic and regulatory pressures, the latest Scottish Technology Industry Survey 2026 from ScotlandIS reveals.

The survey shows that the majority (71%) of Scottish technology businesses remain optimistic about their outlook for 2026, despite an increasingly challenging operating landscape. Perhaps unsurprisingly, this marks a slight dip from previous years – 73% in 2025 and 80% in 2024 – signalling a moderating outlook after several years of strong confidence.

Despite this softening in headline optimism, the broader results point to solid underlying pipelines and improved financial stability. More than half (58%) of Scottish technology companies reported rising sales in 2025, while 84% expect to see sales growth in 2026. Cashflow pressures have also eased, with 36% of businesses reporting improvement and only 11% experiencing substantial difficulties (down from 16% in 2024).

Examining the anticipated growth more closely, expectations remain strong across most customer sectors. This is particularly the case in energy & utilities, financial services, and healthcare & pharmaceuticals – reflecting an increased demand for digital technology support in highly regulated and data-intensive industries.

In terms of technology, AI continues to act as a central driver of innovation and growth, with almost all respondents now using the technology in some form. Full adoption has doubled to 18%, while only 2% report no use at all (compared to 10% the previous year). Results around its use cases also indicate a clear shift from experimentation to implementation.

At the same time, the opportunity landscape is evolving. Although AI and ML (59%), data analytics (36%) and cybersecurity (36%) remain key focus areas, slightly lower levels of interest – alongside reduced enthusiasm for cloud and IoT – suggest a maturing market and more targeted innovation strategies.

Karen Meechan, CEO at ScotlandIS said: “It’s encouraging to see optimism holding across Scotland’s tech sector, even as confidence levels ease slightly. The fundamentals are strong – businesses are growing, investing and continuing to innovate.

“Although it fell after the survey period, the unveiling of Scotland’s AI strategy will likely provide the sector with a further boost – bringing much needed clarity and direction.

“Of course, the outlook is not without its challenges. Companies are operating in a tougher, more complex environment, and that’s clearly shaping how they approach growth. But crucially, it doesn’t seem to be stalling it.

“In terms of practicing what we preach, AI has a big role to play in this. One of the most significant shifts we’re seeing is the move from simple adoption to using the technology in ways that deliver real impact. I believe our businesses can be true innovators in this space.”

The full report can be downloaded here.

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