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Coventry University calls for action to address AI skills gap in automotive sector

The report found widespread shortages in software, AI and embedded systems, along with gaps in mechanical, electrical and power electronics engineering. 

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Automotive industry skills gap
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Coventry University has warned that the UK automotive sector is facing a major shortage of artificial intelligence (AI) and digital skills, putting jobs and the country’s competitiveness at risk. 

The new report, ‘Can AI fill the Automotive Skills Gaps?’, was commissioned by the Advanced Propulsion Centre UK. 

It found strong interest in AI but said confidence and practical skills were lacking across the industry.

The research drew on interviews, workshops and surveys with industry leaders and workers. 

It highlighted problems with recruitment, training and upskilling. 

There were widespread shortages in software, AI and embedded systems, along with gaps in mechanical, electrical and power electronics engineering. 

Most workers were only “somewhat confident” in using AI, and although tools like ChatGPT were known, sector-specific applications were less understood. 

Digital literacy issues were holding back adoption, even with basic tasks like using data dashboards or coding logic. 

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There was also a mismatch between what education provides and what employers need, with many graduates not having workplace-ready skills. 

Additionally, the report noted a call for more diversity and new entry routes to bring young people and career-changers into the sector.

Professor Richard Dashwood, deputy vice-chancellor (research) at Coventry University, said: “AI offers enormous potential to transform the UK automotive industry, but without the right skills in place, we risk being left behind. 

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“We need urgent, coordinated action to build a digitally confident, agile workforce.”

The report warned that, without quick action, the UK could lose its status in automotive innovation, become over-reliant on overseas recruitment and miss out on scaling local start-ups.

Dan Fung, head of strategy at the Advanced Propulsion Centre UK, said: “AI presents a powerful opportunity to reshape the UK automotive workforce for the better. 

“This report shows that with the right investment in skills and collaboration, we can unlock innovation, boost competitiveness and build a more inclusive, future-ready sector.”

The report added that greater investment in hands-on, workplace training and lifelong learning is needed, as well as cross-sector skills frameworks to define and apply AI capabilities to automotive roles. 

It also called for closer collaboration between industry, academia and Government to better match training to real-world needs.

Deepak Farmah, director of research and innovation at Coventry University, said: “The sector is positive about AI but it needs practical training, clear frameworks and stronger collaboration to unlock its full benefits. 

“By working together, we can secure the UK’s place as a leader in automotive innovation.”

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