A recent report has highlighted that a staggering 72% of companies in the United Kingdom are contending with significant skills shortages, particularly in areas such as artificial intelligence (AI), data analytics, and cybersecurity. This deficit is resulting in a substantial productivity loss of approximately £275 million annually.
Amidst these challenges, businesses are increasingly adopting strategies such as ‘quiet hiring’, upskilling their existing workforce, and deploying AI tools to bridge these gaps without expanding headcount. The use of AI to address these skill shortages has surged by 42% over the past year.
Despite considerable investments in digital transformation, many UK firms continue to struggle with productivity inefficiencies. Employees are reportedly spending an average of two days per week on manual, low-value tasks, which significantly contributes to the overall productivity loss. This inefficiency is also causing dissatisfaction among employees, with 41% contemplating leaving their jobs due to outdated processes.
While 35% of companies are planning to increase their investment in AI within the next year, only 43% feel fully equipped to implement these technologies. Concerns around security and data protection remain significant obstacles. Nevertheless, enhancing efficiency through AI and digital tools remains a top priority for most firms, as they strive to align their technology investments with improved productivity outcomes.
Sheila Flavell, COO of FDM Group, underscored the urgency for businesses to support their AI investments with robust skills training. “With AI advancing rapidly, businesses are investing more to stay competitive. However, it’s crucial for companies to provide high-impact skills training to help their staff keep pace with evolving technology. Upskilling in AI, data analytics, and security ensures they have the talent needed to drive digital transformation.”
Flavell further emphasised the importance of experiential learning in upskilling efforts, enabling employees to gain hands-on experience with new technologies. “This approach not only boosts productivity but also reduces the reliance on ‘quiet hiring’ and helps retain top talent by offering real opportunities for growth,” she added.
As businesses navigate the challenges of a rapidly evolving digital landscape, the focus on upskilling and integrating AI solutions is set to play a pivotal role in closing the skills gap and enhancing productivity. However, for these initiatives to succeed, companies must also address security concerns and ensure their workforce is adequately prepared to leverage new technologies effectively.
The findings underline the urgent need for UK firms to focus on bridging their skills gaps through AI integration and comprehensive upskilling initiatives. Addressing these challenges is crucial for boosting productivity and retaining top talent in an increasingly competitive market.
