Marvin OnumonuSkills England has released a report showing a major artificial intelligence (AI) skills gap was holding UK businesses back.
Three new tools have been launched to help fill the gap and unlock up to £400bn of growth by 2030.
Dr Nisreen Ameen, from Royal Holloway, University of London, developed the tools with Skills England, funded by the British Academy’s Innovation Fellowships scheme.
The report found AI could boost the UK economy by up to £400bn by 2030, but different sectors were struggling to keep up.
In construction, AI was starting to help with drone surveying and safety simulations, but slow adoption was linked to a lack of basic digital literacy.
Creative industries were using AI for content creation, but many freelancers and small employers were using it without training, raising concerns about quality and originality.
In advanced manufacturing, automation and robotics were in use, but the skills gap was widening due to an ageing workforce.
A common barrier was poor understanding among employers, especially small and medium-sized enterprises (SMEs), of what AI skills actually were and what staff needed to learn.
Minister for Skills Jacqui Smith, said: “AI has the power to transform our economy – but only if people have the right skills to utilise it effectively.
“This report makes clear that too many employers are still unsure how to begin their AI journey.
“That’s why, through Skills England, we’re working hand-in-hand with industry to equip the workforce with the tools they need for the future.”
Smith added: “By doing so, we’re not just preparing our economy for the jobs of tomorrow – we’re raising living standards and putting more money in people’s pockets as part of our Plan for Change.”
The report introduced three new tools: the AI skills framework, which sets out technical, responsible and non-technical skills for different jobs and levels; the AI skills adoption pathway model, showing how organisations progress from awareness to strategic scaling; and the employer AI adoption checklist, designed to help businesses assess their AI readiness, spot skills gaps and upskill staff.
Phil Smith, Chair of Skills England, said: “It’s an absolute necessity that we build an AI and digitally confident nation helping to improve our productivity and competitiveness.
“While a huge variety of AI technology is becoming available, our report shows that too many employers are currently struggling to reap the benefits.
“The new tools will help employers and training providers map skills needs and make sure the right training is in place.”
Smith added: “They will be particularly useful to SMEs – who are vital to unlocking AI growth potential but typically won’t have big HR and staff training teams to get to grips with the problem.”
Ameen said: “AI is reshaping the world of work across sectors, but without the right skills, too many people and businesses risk being left behind.
“This report provides a clear, evidence-based foundation to help employers, educators, and policymakers build more responsive upskilling pathways.
“By investing in practical, accessible AI skills development, we can support workforce readiness, boost economic productivity, and ensure the benefits of AI are widely shared across the UK.”
Katie O’Donovan, director of public affairs and public policy for Google, said: “AI has the potential to unlock a productivity boost worth billions for growing businesses across the UK, but only if people have the skills needed to drive widespread adoption.
“Initiatives like this are absolutely vital – they demystify AI, provide a clear roadmap for adoption, and equip businesses with the skills needed to meet this moment.
“We welcome these steps from Skills England, which powerfully complement our own work with the Department for Science, Innovation and Technology (DSIT) to help upskill 7.5 million Brits in essential AI skills – enabling more people to harness the power of AI and unlock growth.”
James Lee, head of public policy and economic graph, UK, at LinkedIn said: “AI is reshaping all our industrial sectors, yet the talent pool of skilled AI professionals is limited.
“At LinkedIn, we see action on skills can transform careers and businesses alike.
“This report’s practical tools give organisations a clear pathway to upskill and embrace AI, helping unlock new economic opportunities for the UK workforce.”
Laura Cioffi, co-founder of Vertis Media and lecturer in digital marketing, said: “AI is reshaping the skills UK organisations and graduates need to stay competitive and inclusive.
“Addressing the current skills gaps isn’t just about technology, it’s about unlocking talent, supporting a diverse workforce, and building readiness for rapid change.
“This research offers practical tools to help every organisation, large or small, assess their strengths and focus training where it’s needed most. Inclusive, accessible AI upskilling is the foundation for a future-ready UK economy.”
Emma Stone, director of evidence and engagement, the Good Things Foundation said: “AI should benefit everyone.
“This research reminds us that a primary blocker isn’t the AI technology, but the basics – like affording a device and connectivity, and having skills and confidence.
“Millions of people still struggle with digital basics, like managing passwords.
“Working out what to trust is getting harder. This fundamental digital skills gap is the greatest barrier to inclusive AI upskilling.”
Jarmila Yu, founder, MD and consulting CMO, YUnique Marketing Ltd, said: “Whilst AI undoubtedly offers potentially huge business benefits, it also presents significant challenges; especially for SMEs who are typically resource light, time poor, and budget constrained.
“Speaking as a small business owner, and one who’s business focuses on providing support to other small businesses, I’m acutely aware of the needs of a growing SME and I warmly welcome this report as it provides a valuable framework to support SMEs with AI planning and AI skills development leading ultimately to AI adoption and the benefits it can bring to support business growth.”
