INTELLIGENT SECTION
FINANCE SALES & MARKETING HR SOLUTIONS EMPLOYEE ENGAGEMENT
As AI skills gap reaches critical levels , UK businesses call on government for change
Gigged . AI has released a 36-page report entitled The AI Talent Crisis : How Skills-Powered Organisations Can Unlock the UK ’ s Potential which has raised concerns over the deepening AI skills gap in the workforce , with an overwhelming 92 % of companies prioritising upskilling in Generative AI . However , the report which surveyed UK businesses , also highlights a major concern : government policies , particularly IR35 and rising National Insurance contributions , are actively hindering businesses ’ ability to recruit and train the talent needed to close the skills gap .
Key insights from the report include :
• AI adoption and productivity gains : UK businesses anticipate that nearly half ( 48 %) of their workforce will be using GenAI in 2025 , with employees potentially saving on average four hours per week through AI-powered efficiency .
• AI and Machine Learning in high demand : Businesses identified AI and Machine Learning as the highestdemand skills for 2025 , signalling a shift towards a more automated and datadriven workforce .
• Job displacement fears : Almost a third ( 30 %) of businesses believe that between 11 – 25 % of roles will be replaced by Generative AI by 2025 , with projections of 26 – 50 % displacement by 2028 . Three in five reveal AI has either very much or completely augmented human work when it comes to customer service
• IR35 and hiring constraints : 35 % of businesses expect to hire fewer people due to the rising National Insurance contributions , while 34 % also believe that IR35 – which hinders using freelancers – is negatively impacting their ability to bring in the right AI skills .
• Government inaction on skills development : Over half ( 53 %) of businesses expressed dissatisfaction with the government ’ s support in addressing the growing AI skills gap , while 44 % feel that the focus on future generations is leaving current workers behind .
• Skills hiding in plain sight : Skills tracking is fast becoming an integral tactic for identifying in-demand internal expertise . Eighty-seven percent of senior tech leaders say they think that skills tracking has helped them with upskilling employees , and even more interestingly , 38 % said they uncovered ready-made AI skills internally from tracking skills .
Despite widespread recognition of the need for upskilling in Generative AI , businesses are facing a growing set of obstacles when it comes to building the workforce of the future . The key barrier : a lack of flexibility in hiring and talent acquisition due to restrictive tax and employment policies , alongside a lack of understanding of the skills within their businesses . x
www . intelligentcxo . com
53