Help for UK businesses to fill £400bn AI skills gap
Source: gov.uk (2025-11-04)

New report exposes major AI skills gap holding UK businesses back - but 3 new tools launched will help unlock up to £400bn growth potential by 2030.

- Skills England unveils new AI Skills Framework, Adoption Pathway and Employer Checklist to support wider and more responsible AI use
- Separately, 7.5 million UK workers are set to gain essential AI skills by 2030 through industry partnership with NVIDIA, Google, IBM and Microsoft - with Skills England using new report to shape training materials
AI is transforming jobs across the economy but employers can’t keep up and harness it in the best way, a new report, ‘AI skills for the UK workforce’ (https://www.gov.uk/government/publications/ai-skills-for-the-uk-workforce), has revealed.

However, help is at hand through 3 new tools - developed by Dr Nisreen Ameen, Royal Holloway, University of London - in partnership with Skills England, and through funding provided by the British Academy’s Innovation Fellowships scheme - to support wider and more responsible AI adoption.

It is estimated that AI adoption could boost the UK economy by up to £400 billion by 2030 through enhancements in innovation and workplace productivity, according to the ‘AI Opportunities Action Plan - GOV.UK’ (https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan#:~:text=AI%20adoption%20could%20grow%20the,and%20productivity%20in%20the%20workplace.).

The new report, published today by Skills England, lays bare major challenges with upskilling for different sectors.

For example, AI opportunities are opening out for Construction, including drone-assisted surveying for land assessments, and augmented reality for on-site safety simulations. But adoption is slow, with a lack of basic digital literacy identified as a key issue for the sector.

With Creative Industries, AI is available for content creation and digital storytelling. However, the report indicates that too many freelancers and smaller employers are using the technology without training, sparking worries over quality control and originality.

And while AI is being applied in many areas in the UK for the Advanced Manufacturing sector - including with automation, predictive maintenance, and robotics - it faces a growing AI skills gap exacerbated by an ageing workforce.

A key common barrier to adoption is poor employer understanding, particularly among small and medium sized enterprises (SMEs), of what is meant by AI skills and what their staff need to learn.

Jacqui Smith, Minister for Skills, 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. 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 has introduced 3 brand new tools to support wider and more responsible AI adoption:
- The AI Skills Framework identifies relevant technical, responsible, and non-technical skills needed for different job roles and at different levels.
- The AI Skills Adoption Pathway Model shows how organisations typically progress through stages of AI adoption, from initial awareness to strategic scaling.
- The Employer AI Adoption Checklist provides structured prompts to help employers assess their AI skills readiness, identify workforce gaps, and upskill. It supports adoption of tools such as ChatGPT, image generation systems, and document summarisation platforms.
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. 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.

Dr Nisreen Ameen, from Royal Holloway, University of London, 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 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 & 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.

It comes as 7.5 million UK workers are set gain essential AI skills by 2030 through a new government-industry partnership with major tech players.

Leading technology companies, including Google, IBM and Microsoft, have committed to making high-quality training materials widely available to workers in businesses - large and small - up and down the country free of charge, over the next 5 years.

Skills England is working with DSIT, which is leading this initiative, to support achievement of this target.

It will use the AI skills for the UK workforce report to support the development of next steps for the initiative, continuing work towards the government’s ambitious AI Opportunities Action Plan, published in January 2025.

Notes to editors:
- This report was authored by Dr Nisreen Ameen with support from The British Academy (https://www.thebritishacademy.ac.uk/) Policy-Led Innovation Fellowship award, in collaboration with Skills England. Input from different areas and sectors helped shape the workshops designs and findings.
- It is focused on 10 priority sectors: they include the 8 growth-driving sectors identified in the government’s Industrial Strategy, which are Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services - plus Construction and Health and Adult Social Care.
- Research commissioned by DSIT shows that by 2035, around 10 million workers will be in roles where AI will be part of their role or responsibilities.
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