The rapid advancement of artificial intelligence (AI) presents a paradox for Wales: while it holds the potential for transformative economic benefits, it also introduces significant risks, most notably job displacement. A recent report from the Economy, Trade, and Rural Affairs Committee of the Senedd underscores the critical need for the Welsh Government to begin comprehensively planning for these implications, as current measures appear insufficient.
Andrew RT Davies, the committee chairman, articulated the urgency of this issue, stating, “AI could bring huge benefits for Wales – but only if we get ahead of the game and prepare for how it could impact our economy.” He stressed the importance of a proactive approach, noting that the groundwork laid by the Welsh Government to assess its competitive edge in the growing technology landscape has yet to meet the challenges posed. The committee highlighted concerns regarding the impact of AI on various sectors and the necessary support for individuals who may find their jobs threatened by rising automation.
The implications of AI and automation on the Welsh workforce have been documented extensively. A 2018 report from Future Advocacy revealed that approximately a third of all jobs in Wales could be at risk due to automation by the early 2030s, with manufacturing identified as particularly vulnerable. This calls for a robust evaluation of the economic landscape to determine how Wales can best utilise the opportunities provided by AI technology.
Recognising the challenges, the Welsh Government has made strides in positioning the region at the forefront of AI initiatives. Plans announced in early 2025 detail a commitment to boost economic growth and improve public services through intelligent technology, with substantial investments earmarked for tech hubs and data centres, including a major project in Bridgend aimed at creating one of Europe’s largest data centre campuses. This infrastructural push indicates progress towards realising the full economic potential of AI.
Additionally, as the AI landscape evolves, smaller enterprises, particularly in rural areas of Wales, face unique challenges. A report by Senedd Research noted that the adoption of AI among small and medium-sized enterprises (SMEs) was notably low, with only 7.42% incorporating such technologies by 2022. The slower uptake among SMEs may hinder overall productivity gains and innovation. Addressing this disparity through targeted policy interventions may be essential to foster a more inclusive AI landscape across all types of organisations.
Significant investments from both the UK government and local authorities have also been made to support AI development. Companies in Wales, such as IQE and MedaPhor, are actively working on AI applications spanning sectors from semiconductors to medical imaging. These investments not only help create high-skill jobs but also aim to nurture clusters of expertise across the region, further reinforcing the growing importance of AI in Wales.
The Welsh Government is concurrently addressing ethical considerations surrounding AI implementation. New guidance established by the Workforce Partnership Council highlights a commitment to responsible AI use, ensuring that both the benefits and potential pitfalls are managed effectively within the public sector. This holistic approach may serve as a model for how other sectors can adopt AI technologies while safeguarding the workforce and promoting responsible practices.
As Wales navigates the complexities of AI adoption, it must balance fostering innovation with mitigating risks to employment. The call for a well-structured framework of support is urgent, as the nation looks to secure a competitive edge in the digital age, ensuring that no sector is left behind in the AI revolution.
Reference Map
- Paragraphs 1, 2, 3, 4, 5
- Paragraphs 5
- Paragraphs 4, 5
- Paragraphs 5
- Paragraphs 4
- Paragraphs 4
- Paragraphs 5
Source: Noah Wire Services