Innovation and AI: New opportunities for businesses across the Highlands and Islands

Published 06/10/2026  by Gillian Galloway   in Economy Supporting businesses
4 min read

Innovation has always been a defining characteristic of businesses and social enterprises in the Highlands and Islands.

Whether developing new products, finding ways to overcome the challenges of distance and geography, improving services, or identifying new markets, organisations across the region have a long track record of adapting and evolving.

Today, that ability to innovate is more important than ever.

We know innovation is one of the most effective ways organisations can improve productivity, increase competitiveness and build resilience.

That’s why we’ve recently launched a new three-year Innovation Programme alongside a range of new support designed to help organisations make the most of artificial intelligence (AI).

Together, these initiatives provide practical support for businesses and social enterprises that want to explore new ideas, improve operations and take advantage of emerging opportunities.

Supporting innovation at every stage

Innovation takes many forms. It might involve developing a new product, improving a service, creating a more efficient process or finding a more sustainable way to operate.

While many organisations have ideas they would like to explore, turning these into reality can be challenging. Constraints on time, funding and specialist expertise can make it difficult to move from an initial idea to a viable project.

Our new Innovation Programme aims to help address those barriers.

Backed by a £1.78m investment over three years, the programme is expected to support more than 500 clients across the Highlands and Islands. It offers a combination of specialist advice, knowledge exchange and financial support to help organisations develop and test new ideas.

There are grants of up to £10,000 to explore opportunities, assess feasibility and tackle technical challenges. Larger and more ambitious research and development projects can apply for up to £100,000 to help bring innovations closer to market.

The programme is designed to encourage more innovation to help growth, improve productivity, contribute to net zero ambitions and strengthen long-term resilience.

Harnessing the potential of AI

Artificial intelligence (AI) is already changing the way many businesses operate. From automating routine administrative tasks and improving customer experiences to analysing data and supporting decision making, it can save time, boost efficiency and create entirely new opportunities.

Despite the growing interest in AI, it can be difficult to know where to begin.

Some organisations are keen to understand the benefits, while others want to identify practical uses that align with their goals. Many are also looking for guidance on how to adopt AI responsibly and manage associated risks.

To help address these challenges, we’ve launched two new support initiatives as part of AI Scotland.

The AI Adoption Programme will support organisations to take practical steps towards implementing AI. Through workshops and expert guidance, participants can learn how to identify opportunities for AI adoption and develop plans for introducing appropriate technologies.

Alongside this, the new AI mentoring support service offers tailored one-to-one guidance from specialists. Clients can explore their ideas, discuss specific challenges and gain practical advice on how AI could support their objectives.

Importantly, the support is aimed not only at businesses already working with advanced technologies, but also at those taking their first steps into AI. The goal is to ensure organisations of all sizes and sectors can benefit from the opportunities AI presents.

Innovation and AI go hand in hand

While innovation and AI are often discussed separately, there is a strong connection between the two.

For many organisations, AI can act as a catalyst for innovation. It can help businesses develop new products and services, improve existing processes and unlock insights that were previously difficult to access.

At the same time, successful AI adoption requires an innovative mindset. Organisations need to be willing to explore new approaches, test ideas and embrace change.

This is where the combination of innovation and AI support becomes particularly powerful. Businesses can access support to develop new ideas, investigate opportunities and secure funding for research and development, while also receiving practical guidance on how emerging technologies can help achieve their goals.

Taking the next step

Every organisation’s innovation journey is different. You might be looking to solve a specific business challenge, or have ambitious plans for new products, services or technologies.

Whatever stage you’re at, there’s now a broad range of support available to help you move forward with confidence.

By combining innovation support, funding opportunities and expert AI guidance, we want to help businesses and social enterprises across the Highlands and Islands realise their potential, improve productivity and strengthen competitiveness in a rapidly evolving economy.

The opportunities are significant, and for organisations ready to explore what’s possible, there’s never been a better time to take the next step.

Gillian Galloway

Gillian Galloway

Head of Innovation

Gillian Galloway is HIE's Head of Innovation. She has a wealth of experience in innovation, R&D and business development - and often shares a cup of coffee with businesses she works with.

Visit Gillian Galloway's LinkedIn

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