A new study has found that 52% of UK technology leaders are experiencing a shortage in AI skills, marking a 114% increase from the previous survey. According to Nash Squared and Harvey Nash, the organisations that commissioned the survey, this makes expertise in AI the hardest technology skill to source in the UK, a significant shift from its fifth place ranking 18 months ago. The study surveyed 2,015 technology leaders globally, including 924 in the UK.
The report attributes the AI skills gap to a surge in investment, with 89% of UK tech leaders either piloting or investing in AI projects, a dramatic increase from 46% in the previous report. Despite this, 69% of UK tech leaders have yet to see measurable returns from AI pilots. Larger organisations with technology budgets exceeding $500m report a 40% measurable return on AI investments.
“As AI continues to accelerate, the scale of the skills challenge is becoming clear,” said Nash Squared CEO Bev White. “UK businesses have a pressing need to ensure their technology teams are equipped with the skills to leverage AI to full effect, or the implementations they are making could fall short.”
In response to the skills shortage, the report finds that over half of UK companies (59%) are not upskilling in Generative AI. The demand for AI and data roles is increasing, with organisations implementing large-scale AI projects being 21% more likely to expand their tech workforce. UK tech leaders anticipate that AI will fulfil one in seven tech jobs within five years, reshaping the types of roles and skills in demand.
Cybersecurity skills demand increases
Cybersecurity skills demand has risen by 43% due to an increase in cyberattacks, while demand for software engineering skills has declined by 8%, attributed to AI’s ability to fill gaps in software development. The report also notes a resurgence in major cyberattacks, with 24% of UK tech leaders experiencing significant incidents in the past two years. Threats from foreign powers and insiders have notably increased, with organised crime remaining a primary concern.
Diversity, equity, and inclusion (DEI) efforts continue, with four in ten UK organisations enhancing their DEI focus. However, gender parity remains unchanged, with women comprising 24% of tech teams, and women in leadership roles dropping from 12% to 10%. AI-focused organisations have seen tech leaders’ pay increases, with over half of UK tech leaders receiving salary raises in the past year. Leaders whose pay rose by 10% or more are typically in organisations with CEOs focused on technology-driven growth and large-scale AI implementations.
“AI is front and centre of most organisations’ technology plans – and it’s encouraging to see that the UK businesses that are the furthest ahead also have the biggest people need,” said Harvey Nash UK&I and Central Europe managing director Andy Heyes. “Rather than killing jobs, AI is changing them and creating new working models. It is also spilling over into a higher likelihood of pay rises, on average, for technology leaders.”
Read more: Over 80% of UK firms report IT skills shortage impacting business
