What Are South Yorkshire Businesses Saying About The Economy And Artificial Intelligence?

Ever get the feeling big changes are happening but you’re not quite sure what they are? Well, a recent check-in with local companies gives a proper sneak peek into what’s on their minds. The latest Quarterly Economic Survey, a huge poll of businesses across the region, has just dropped its findings. Think of it as the area’s business report card. And this time, it shows two big things: the local economy is finally finding its feet again after a rocky patch, and everyone is talking about Artificial Intelligence, or AI. But being excited about something and being ready for it are two very different things. The survey, a joint effort by Doncaster Chamber, Barnsley & Rotherham Chamber, and Sheffield Chamber with the British Chambers of Commerce, paints a really interesting picture of ambition meeting reality.

Ready or not, here comes AI

It seems like you can’t go a day without hearing about Artificial Intelligence. It’s the tech that can write poems, create pictures, and help doctors spot illnesses. And businesses in South Yorkshire are definitely paying attention. The survey, which ran between 18 August and 15 September 2025 and heard from 290 firms, found that a massive 86% of them plan on boosting their AI integration. That means they want to use this clever tech in more parts of their daily work.

But here’s the twist. Wanting to use AI is one thing; knowing how is another. The survey on AI readiness showed a massive split:

• 14% felt totally prepared with a clear plan. Top of the class.
• 55% said they were 'somewhat prepared' – basically, they’re working on it but haven't got it all figured out yet.
• 31% admitted they were 'not yet well prepared'. They have the ambition, but not the tools or the know-how.

It’s a bit like having all the gear for a trek up a mountain but no map. The enthusiasm is there, but the preparation is lagging behind for nearly a third of businesses. This is a big deal because getting AI right could be a game-changer for the region, something the new Growth Strategy for South Yorkshire is focused on.

Dan Fell, the Chief Executive of Doncaster Chamber, put it perfectly:

“Businesses in our region clearly see the potential of AI, but too many are trying to run before they can walk. One in three have ambitions to integrate AI but don’t yet have the skills, policies or leadership structures in place. That’s a risk, but also an opportunity. With the right training and collaboration, South Yorkshire firms can be at the forefront of responsible and impactful AI adoption. The stabilisation we’re seeing in the wider economy this quarter shows that now is the right moment to get serious about investing in innovation.”

Rules and teamwork? Not so much

When you get a powerful new tool, you need a rulebook. For AI, these rules are called AI policies. They cover the important stuff, like how to use it safely and fairly, and the tricky subject of ethics. The survey shows that most local companies haven’t written their rulebook yet. Only one in five have formal policies in place for using AI. Another 20% are working on them, but that still leaves a lot of firms using powerful tech without clear guidelines.

And it seems most are trying to figure it out all by themselves. More than half of the businesses surveyed are working on their own, with very little collaboration. Only about 29% are actively teaming up with others, like tech experts who could help them avoid the pitfalls. This lack of teamwork could slow down progress and make the journey into AI a lot harder than it needs to be. It creates barriers that could be knocked down by working together.

Carrie Sudbury, who heads up the Barnsley & Rotherham Chamber, highlighted the key issues:

“These results shine a light on both the potential and the pitfalls of AI for South Yorkshire. It’s encouraging that marketing, operations and customer service teams are already leading the way, but we mustn’t ignore the gaps in areas like HR. The biggest barriers cited – lack of knowledge, lack of in-house skills and uncertainty about ethics – are all areas where collective action can make a difference. Our members are also clear that alongside innovation, Government must address fundamentals like taxation and labour costs if we want to maintain momentum on growth.”

The bigger picture: things are calming down

Away from all the tech talk, the survey had some good news about the general economy. After some tough times, things seem to be stabilising. More businesses reported that their UK sales and orders were holding steady. And for the first time in nine months, more money was coming in than going out for the average firm. Even exports, while not booming, showed signs of improvement. This steadying of the local economy provides a better foundation for companies to think about the future and invest in innovation.

However, firms are still being careful. When it comes to recruitment, most are holding back on hiring permanent staff. The need for new skills is still a big issue, especially for skilled manual and technical jobs. And while general confidence is slowly picking up, money worries haven’t vanished. Half of the businesses surveyed are more concerned about taxation now than they were three months ago, and inflation is still a major headache. So, while the storm might be passing, no one is taking their eye off the clouds just yet.

So, what's the mood on the street?

The overall feeling is one of cautious optimism. There’s a growing confidence that things are getting better, but it’s fragile. The ambition to embrace change, particularly with Artificial Intelligence, is a massive positive. It shows that South Yorkshire businesses are forward-thinking and ready for a challenge. But ambition alone doesn't pay the bills or teach an employee a new skill.

The survey is a clear signal that for the region to truly succeed, the excitement around AI needs to be matched with practical support. Businesses need help developing the right skills, understanding the ethics, and creating sensible policies. This isn't just about downloading the latest app; it's about a fundamental shift in how work gets done.

Louisa Harrison-Walker, from the Sheffield Chamber, summed up the situation:

“The QES is always a reality check – it tells us exactly where businesses are thriving and where they are anxious. It’s reassuring to see confidence creeping back and export performance improving, but the message on AI is stark: ambition is not enough. Businesses want to embrace new technologies but lack the tools, skills and trust to do so at scale. That’s why SYMCA’s Growth Strategy, with its focus on innovation and skills, is so timely. It’s a chance to position South Yorkshire not only as a region that adopts AI but as one that does so responsibly, inclusively, and with real economic benefit.”

The message from this quarter’s survey is pretty straightforward. The South Yorkshire economy is getting back on its feet, which is fantastic news. And local businesses are eager to get stuck into the world of innovation. But to turn that eagerness into real success, especially with something as big as AI, they need backup. Without proper support on everything from skills training to fair taxation, there's a real danger that many could get left behind in the race to the future.