Manchester is poised to become one of the UK’s leading centres for artificial intelligence (AI). The city is being considered as an official AI Growth Zone under the Government’s AI Action Plan, reflecting its strengths in innovation and its position as the productivity capital of the UK.
For businesses across Greater Manchester and the wider North West, this presents a significant opportunity to harness AI as a driver of sustainable growth.
BDO’s recent Economic Engine research shows encouraging progress. Three quarters of UK mid-sized businesses are already ahead of their 2025 growth targets, with many attributing this to their use of AI. In the North West specifically, more than half of companies are investing in AI, automation or similar technologies to support their expansion.
To continue this momentum, however, businesses need a clear strategy that turns investment into measurable outcomes.
Identifying high-impact AI applications
The starting point for any business is to identify where AI can create the greatest impact. The technology is highly versatile, but adoption should be guided by the challenges and goals of the organisation. AI can enhance decision-making by processing large and complex datasets more quickly than traditional methods, producing insights that inform strategy and operations.
Practical applications are already emerging. Chatbots and virtual assistants are reducing the burden on customer service teams, while predictive analytics is supporting more proactive risk management.
Automation is streamlining repetitive tasks, lowering costs and freeing employees to focus on higher-value activity. AI also allows companies to personalise products and services using customer data, improving satisfaction and retention.
By prioritising areas aligned to strategic objectives, businesses are more likely to see AI deliver tangible value.
Building governance and risk controls
As adoption grows, businesses must balance innovation with responsibility. Strong governance frameworks are essential to ensure that AI is used safely and effectively. Data privacy should be a priority, with appropriate safeguards to reduce the risk of misuse or cyber breaches.
The quality of data is also critical. Inaccurate or biased inputs can distort outputs, leading to poor decision-making and reputational harm. Over-reliance on AI carries its own risks, as technology cannot replace human judgement.
By embedding oversight and risk management at an early stage, businesses can build confidence in AI use.
Ensuring transparency and fairness
AI decisions can have far-reaching implications, particularly where they affect customers directly. Without careful oversight, models may replicate or amplify existing inequalities. Examples include recruitment tools that discriminate against certain groups or pricing models that disadvantage vulnerable customers.
Transparency helps mitigate these risks. Businesses should develop mechanisms to test and explain AI models so that both customers and regulators can understand how outcomes are reached. With proper governance, AI can also be used positively to promote fairness, support diversity and improve environmental performance.
Measuring impact and return on investment
The long-term success of AI adoption depends on measuring its outcomes. Businesses should track both financial performance and customer impact, ensuring that benefits are not outweighed by unintended consequences.
Senior leaders need to take responsibility for oversight, treating AI as a core business issue rather than a technical project.
The spectre of AI
AI will play a growing role in reshaping business models, improving efficiency and strengthening competitiveness. However, businesses that pursue rapid adoption without strong governance risk undermining the benefits. The focus must remain on responsible use, measurable outcomes and sustainable value creation.
For North West businesses, this approach offers a clear path to harnessing AI for growth while building trust with customers and stakeholders.
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