Almost half UK firms cite AI skills shortage as barrier to growth
Nearly half of UK businesses say a shortage of AI and digital skills is now the single biggest barrier to scaling AI, according to a new report, despite rapid growth in adoption across the economy.
The Amazon Web Services (AWS) research found 49 per cent of UK organisations cite a lack of AI and digital skills as their main constraint, amid a widening gap between investment in AI tools and the workforce needed to use them effectively.
The finding points to a structural bottleneck as firms move beyond early experimentation with AI and attempt to embed it into day-to-day operations.
While adoption has accelerated, many organisations report difficulty recruiting or training staff with the required tech skills.
The issue is becoming increasingly central to the UK’s economic outlook. Government estimates suggest AI could add up to £400bn to the economy within five years, but industry data indicates many firms are still struggling to translate spending into measurable returns.
Business groups and industry leaders have pointed to re-skilling as a critical factor. Demand for roles involving AI is expected to rise sharply over the next decade, with projections suggesting they could account for a significant share of the workforce by the mid-2030s.
As the report wrote: “Left unaddressed, the skills gap risks becoming the single biggest constraint on the UK’s ability to convert widespread AI adoption
into genuine economic transformation.”
Leadership gap also holding back AI rollout
Alongside skills shortage concerns, separate research suggests leadership capability is also affecting how quickly organisations can scale AI.
A study by leadership consultancy The Positive Group found that while most executives expect to reach advanced AI maturity within the next two years, fewer than a third have so far embedded AI into core business processes at scale.
The report links this gap to day-to-day leadership behaviours, including how clearly AI strategy is communicated and how consistently teams are updated.
It also highlights the importance of translating technical concepts into maintaining a clear strategic focus, and building trust among employees as roles evolve.
“We need to explain AI in plain language, simple enough that even my six-year-old
could understand it, because accessibility builds curiosity and trust”, said Tarv Nijjar,
global head of product & platform transformation at McDonalds, who took part in
the study.