Unlocking the Future: UK’s AI Ambitions Stalled by Talent Shortage

The AI Action Plan and Its Challenges

The UK government has ambitious plans to create 13,000 jobs as part of its AI Action Plan. However, there are growing concerns about a potential shortage of skilled labor needed to meet the increasing demand in the tech industry.

Recruitment Challenges in AI

A recent study by HR platform Deel indicates that AI positions are among the hardest to fill, with nearly 25% of enterprises expressing concern over their ability to recruit for AI roles. Matt Monette, the UK country manager at Deel, highlighted that the UK’s ambition to become a global hub for AI will depend on whether organizations can find the right skills to achieve this goal.

Turning to International Talent

In light of the talent shortage, many organizations are looking abroad for tech talent. Approximately 50% of business leaders are considering international hires this year, with 75% of IT firms indicating they would seek international talent to address shortages. Monette emphasized that hiring from abroad not only helps fill immediate needs but also supports sustainable growth in a flexible work environment.

Key Sources of Global Talent

The primary sources of foreign talent are the US and Europe, both identified by around 50% of respondents, followed by Canada at 32%. Regions in Asia, such as India and China, are also seen as potential talent hubs. Current data shows that the UK ranks as the fifth most popular country globally for expats in tech roles, indicating high international demand.

Barriers to Accessing Talent

Despite the demand for international talent, UK businesses are concerned about red tape that may impede access. The most significant barriers include:

• Complex legal requirements (55% of enterprises)
• Stricter immigration policies and compliance risks (both around 50%)

Government Initiatives to Boost Talent

In response to these challenges, the UK government has outlined several initiatives aimed at strengthening AI-related talent. The AI Action Plan proposes scholarship and fellowship programs to attract talent, alongside the establishment of Skills England and a Curriculum and Assessment Review to upskill the current workforce and educate young people in essential skills.

The Ongoing Talent Gap

Concerns about the AI talent gap are not new. Previous research highlighted this issue as a critical barrier to AI adoption, with a survey showing that 80% of tech leaders consider it an urgent problem. Skills in generative AI, large language models (LLMs), and data science are particularly sought after, yet many enterprises struggle to fill these roles. This talent shortage has become a significant headache for executives, even surpassing concerns about cybersecurity talent.