UK skills gap threatens to stall Starmer’s AI plans as firms looks abroad
A severe shortage of the nation’s tech skills may stifle the government’s push to turbocharge artificial intelligence (AI) in the UK, a survey has warned.
Keir Starmer announced the government’s AI opportunities action plan in January, in which he pledged to create over 13,000 jobs in the tech sector. But it may struggle to get off the ground, it emerged today.
Industry data showed there aren’t enough skilled professionals to fill these roles, according to a survey by HR platform Deel.
It found that IT, tech and AI positions are the hardest to recruit for in 2025, and 43 per cent of UK business leaders are considering hiring talent internationally, instead.
Within the tech space, three quarters of IT firms are reportedly looking abroad for skilled workers.
Matt Monette, UK country manager at Deel, said: “As the UK races to cement its position as an AI leader, evidenced by the government’s AI Opportunities Action Plan, it’s concerning that the very people who will be driving private sector innovation are proving the hardest to find.”
“Without the right talent the country’s ambitions could be at risk, potentially stalling the UK tech sector’s growth and competitiveness.”
To ensure the AI action plan’s success, the government emphasised the need to train tens of thousands of workers by 2030.
In 2022, there were only 46,000 graduates in AI-related fields, which will make AI hiring challenging for UK employers.
Recognising the skills gap, Rachel Reeves recently proposed high skill visas to attract overseas AI talent.
She told the world economic forum last Wednesday that the government planned to publish an immigration white paper later this year.
It will review visa policies to entice skilled workers to drive economic growth.
Despite the shortage in the UK’s AI skills, LinkedIn’s latest report showed positive momentum amongst UK businesses.
It also found that AI-related talent in the UK has surged by over 310 per cent in the past eight years, while 25 per cent of British businesses now view AI as a necessary skill for career progression.
41 per cent of companies are investing in development to train employees in AI tools, with 23 per cent adapting company culture to improve AI fluency.
This comes as Microsoft and Pearson UK recently announced a long term partnership in an attempt to bridge the AI skills gap.
Microsoft’s chief commercial officer, Judson Althoff, said: “The speed and scale of AI innovation present a unique opportunity for organisations to transform, but this requires workers who are equipped with the right skills.
“This partnership will empower employees to advance their careers while helping businesses unlock AI’s potential.”