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 highest-demand skills for 2025, signalling a shift towards a more automated and data-driven 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.
