Recent industry discussions have focused on the opportunities associated with AI to enhance the UK economy and improve living standards. Upskilling people in data and digital technologies can accelerate economic growth and progressive communities. The potential of technology to drive productivity and efficiency can only be recognised if businesses hire or train individuals with the right skills. At a recent roundtable event managed by Labour Digital and Multiverse, people discussed how the UK can remove the barriers to opportunity and make the benefits of technology skills available to everybody. 

During the discussions, representatives voiced concerns that some industries remain disconnected from the role of current and future technology despite the clear benefits of AI. McKinsey highlights that change is happening at a remarkable speed and expects that by 2025, smart workflows and seamless operations between humans and machines will become the norm and that most employees will use data to enhance nearly every area of their working lives. Industry members recognise an increasing gap between the potential of technology and the existing workforce capability. 

The Skills Challenge

The new Growth and Skills Levy, which is due to replace the previous Apprenticeship Levy, will enable employers to use 50% of their contributions to support training through other pathways beyond apprenticeships. The Government hopes it will provide more flexibility and allow more experienced individuals to upskill or retrain. This could be beneficial to companies looking to provide technology-based training opportunities. Concerns were voiced at the event, suggesting that there are still some uncertainties regarding implementing technology into job roles and participating in further training.

There is evidence suggesting that new technology is often not used to its capacity by companies, and data is typically not trusted. The Mapping the Data Skills Gap Intelligence Report 2024 by Multiverse discovered that businesses may be investing significantly in software, but they aren’t necessarily matching that investment with skills training, leaving many employees at a disadvantage.

The latest Global Skills Report from Coursera highlights the urgency for action, with the UK’s global rank in core skills decreasing from 28th in 2022 to 64th in 2023. At the senior level, there is some reluctance to invest in technologies without clear evidence or confidence in returns. The Forrester 2023 report, Your Data Culture is in Crisis, suggested that over 40% of employees often mistrust the data available for decision-making processes, and Multiverse believes employees spend over 30% of their time working with unproductive data sets, with over 50% reporting that they lack basic Excel skills.

Research also suggests there are geographical challenges to overcome. Recent studies found that industries in urban areas have benefitted from the recent technology developments. Many rural areas, however, remain underserved, with wider skills gaps and inadequate infrastructure to enable effective adoption of technology. The regional disparities could impact the potential of digital and data to allow for increased efficiency, productivity and competitive advantages. One of the primary goals of digital technology is to provide people with the opportunity to work and earn well, no matter where or who they are.

Upskilling the people

To prepare people for the future, we need data and digital literacy to be available for everyone, but despite further efforts to tackle the skills gap, there remains a fragmented response by sector and region. The Government’s Flexible AI Upskilling Fund has provided a subsidy for AI skills training for SMEs, but it also requires companies to invest 50% of the costs, impacting overall accessibility to the scheme. While these plans are beneficial, they are creating gaps in skills development across the country.

To achieve a world where data works for everybody, we required a unified solution that tackles the digital and data skills gap at scale, covering all industries and regions. There is hope that the upcoming AI Opportunities Action Plan will provide details on how to increase the uptake of technology and how to deliver the necessary infrastructure and talent to harness this. Any strategy for delivering digital and data skills must balance technical training with other skills, like building communities, service design, data innovation and leadership. By taking this approach, we can ensure technology has a positive impact on business, its people and communities and create the best outcomes for everyone.

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