Taking a look at the Senedd Economy, Trade and Rural Affairs Committee Report on artificial intelligence and the economy

September 2025 | AI & Automation, Featured

In May of this year the Senedd Economy, Trade and Rural Affairs Committee published a report which looked specifically at artificial intelligence and its potential effects on the Welsh economy. The report’s title is ‘Can Welsh androids dream of electric sheep?’, a reference to Phillip K. Dick’s novel ‘Do Androids Dream of Electric Sheep?’, the basis for the film adaptation ‘Blade Runner’.

Far from being a document which imagines a dystopian future similar to the book, the report discusses the potential of new technologies such as large language models or LLMs on the workforce and the nature of work in Wales. Along with compiling the evidence heard by the committee, there are also eight recommendations that were presented to the Welsh Government to consider.

The recommendations listed by the committee are as follows:

 Recommendation 1: The Welsh Government should develop an action plan setting out the approach it will take to maximising the potential benefits of AI, including specific actions relating to supporting businesses and the workforce, and development of AI infrastructure.

Recommendation 2: The Welsh Government should set out which areas of AI it considers Wales has a competitive advantage in, and how it will support Wales based businesses in these areas of specialisation to develop and grow.

Recommendation 3: The Welsh Government should review what support is available to support businesses to adopt and benefit from AI, and identify where gaps exist. Resulting from this review, the Welsh Government should work with partners to address these gaps.

Recommendation 4: The Welsh Government should set out how it intends to support any AI growth zones that are developed in Wales, including how it will help to address potential consequences around higher energy and water use.

Recommendation 5: The Welsh Government should consider how procurement of AI can be incorporated into its forthcoming guidance on the socially responsible procurement elements of the Social Partnership and Public Procurement Act 2023.

Recommendation 6: The Welsh Government should analyse which areas, sectors and demographic groups are most likely to be negatively affected by job displacement due to AI. Based on its findings, it should work with partners to develop and target tailored support for these groups.

Recommendation 7: The Welsh Government should assess which skills the workforce requires to enable Wales to maximise potential benefits from AI, and review the extent to which the workforce and future workforce have these skills. Where gaps are identified, it should prioritise working with partners to develop the necessary education and skills interventions to address them.

Recommendation 8: The Welsh Government should build on its existing guidance in relation to AI and the workplace by:

▪ Working with partners to identify what further guidance is needed in the devolved public sector in relation to job quality and equality issues regarding AI and the workplace, and developing this.

▪ Considering what guidance on AI and the workplace is needed to support businesses and private sector workers, and working with partners to develop this.

The Welsh Government responded to the committee’s recommendations stating that they accepted or accepted in principle all of the points made. You can find the committee’s full report by following this link. You can read the Welsh Government’s response here.

 

 

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