The winner was chosen by a panel of judges from across the creative industries, chaired by music journalist Arusa Qureshi.
Robert Kilpatrick, creative director of the Scottish Music Industry Association, said Kai Reesu's album was a "truly well-deserved" winner.
He added: "Massive congratulations to Kai Reesu for a bold, genre-blending record that moves effortlessly between jazz, hip-hop, grime and psychedelia.
"It's prophetic, propulsive and defiantly inventive."
The ceremony included live performances from 2024 winner Redolent and a set from KT Tunstall to close the night.
Tunstall, who grew up in St Andrews, performed three songs from 2005 album Eye to the Telescope.
She said: "I live in America and I travel all over the world and people love Scottish musicians.
"So I'm just very proud to be in that lineage of amazing Scottish artists that have contributed an awful lot to the world, even though we're such a wee country."
Previous winners of the award include Young Fathers in 2023, Fergus McCreadie in 2022 and Mogwai in 2021.