The study discovered that 82% of Scots have reservations or face challenges that deter them from using AI.

The main reason behind this hesitancy is a preference for human interaction. Around 47% of Scottish consumers avoid AI for this reason. A generational divide was noted, with over half of the respondents in the 55 to 64 and over 65 age brackets across the UK expressing a preference for human interaction, compared to under a third in the 18 to 24 age range.

Another significant issue is concern over data privacy. 36% of Scots expressed such worries, with the youngest respondents (18-24 year olds) showing the highest level of concern (37%).

Cost was another significant barrier to AI adoption, particularly among Gen Z respondents (18-24 year olds), with 45% in this group having found AI-enabled technologies too costly.

When asked which tasks they’d use AI for, voice assistants were the most popular choice among Scots (47%), whereas self-driving vehicles were the least favoured (23%). Saving time was the primary motivation for using AI, with 37% of Scots choosing this reason.

Ian West, head of technology and alliances at KPMG UK, said: “AI is incredible technology with huge potential but there is much for businesses to think about when it comes to consumers’ views of AI.

“There are several barriers to adoption that need to be addressed by tech companies and by businesses who are rolling out the technology. Businesses need to be clear about the benefits of the technology and how it is transforming the proposition available to consumers for it to become accepted.

“There are issues that you can’t really get around like preferring to interact with a human, however the integration of smarter AI that adapts to a consumer’s conversation style and preferences may help the interaction seem more natural. Businesses should look at why consumers prefer to interact with a human – is it because they can have a broader conversation? Is it because they think there is less chance of error? Is it because they want to negotiate?

“Once they consider these possibilities, then it could become easier for them to shape the narrative around why they have chosen to use AI and the benefits compared to if it was a human.”

Mr West continued: “Data privacy concerns also seem to be very prevalent amongst consumers. Tech companies and regulators need to look at what can be done to protect data and ease concerns if these technologies are to become widely adopted. This is becoming increasingly important as AI integrates more and more into our everyday lives, whether that be talking to a customer service chatbot or using a voice assistant in your home.

“As is often the case, regulation has fallen behind the development of the technology and it is important that this catches up if AI is to become mainstream. The recently published AI regulation whitepaper is a promising step in the right direction to address privacy concerns with AI.”

Only 14% of Scottish consumers surveyed said they thought that the development of AI and its applications will support jobs, with 38% believing it threatens them, 36% believing it will equally support and threaten jobs, and 12% were unsure.

Commenting on the threat of AI to jobs, Ian West added: “There is a lot of concern around whether the increased use and development of AI will threaten jobs. There are going to be certain jobs that are at higher risk of automation from AI but for the most part, businesses should be looking at how AI can create efficiencies to free up time for their staff to concentrate on their most important tasks, not how it can replace staff.

“Almost a third of Scots reported that they would use AI to save time, if applied in a work context this would mean that their time would be freed up to spend on the most important elements of their jobs.

“The conversation should be about how AI can help us to do our jobs better and even help us do things we can’t currently do. If this is how the conversation is framed then AI should not threaten jobs but empower them.”