UK digital skills gap and job vacancies-why AI is the cause and the cure

It’s no secret that organisations are facing a shortage of skills, but the term ‘skills gap’ fails to tell a complete story. While UK job vacancies remain at a high of more than 900,000 according to Statista, the average UK organisation isn’t waiting around for vacant positions to be filled. IDC research shows one in three organisations already use—or plan to use—AI solutions to help augment work.¹

This situation can be thought of as more of a ‘skills gold rush’: Digital skills are in high demand but low supply across the UK workforce, with organisations in a race to acquire them. Research by FutureDotNow reveals that 59% of the UK workforce is unable to do all the digital tasks necessary for work. This rush is driven in part by AI—and organisations need to get practical about how to tap into it in a way that benefits employees and the business.

The Workforce Skills Forecast research by ServiceNow and Pearson reveals the impact of this technological shift. The average implementation consultant in the UK is expected to save 11.5 hours per week in the next five years, thanks to automation and generative AI. These technologies are also expected to create almost half a million new tech roles in the next five years for the UK workforce.

The skills gold rush

Using AI to augment skills gaps still requires businesses to hire, reskill, or upskill workers. Figuring out what those skills are is an important first step. If business leaders don't have complete visibility into the skills they have and need—or are likely to need in the future—they’ll struggle to meet the demands of the future workforce.

Organisations must take steps to better equip workers for the future. Key considerations include identifying the skills the organisation is missing, which workers can be reallocated or reskilled to a more valuable area of the business, and how technology can be implemented to relieve manual workloads.

Gaining this visibility doesn’t require a complete system overhaul, or significant investment in technology. Here are three steps for success:

1. Create a skills inventory

Gather data about existing capabilities in-house, whether through surveys, industry reports, performance reviews, or company dashboards. The goal is to build a foundation of knowledge that helps the organisation predict future skills needs.

2. Upskill and reskill proactively

Look at ways to reskill employees that may be impacted by automation. Identify the jobs at risk and determine how to make use of transferrable skills possessed by employees in these roles.

Beyond structured training programmes, it’s also important to encourage a culture of learning. Ensure employees can regularly build on skills so that they remain adaptable should workforce needs change quickly.

3. Hire for skills, not roles

There will be significant hiring needs as new roles emerge. The World Economic Forum predicts that almost 1.1 billion jobs will be affected in the next decade—due in part to the opportunities and threats posed by technology. Instead of rigid role requirements, organisations should prioritise universal skills like problem-solving, strategic thinking, and continuous learning.

Evolving with the workforce

The digital skills shortage isn’t necessarily the issue we’ve been conditioned to think it is. It’s a symptom of one of many workforce transformations we’re likely to see in our lifetime.

Let’s look at the shortage as an opportunity to tap into the needs of our workforce in a world shaped by AI and automation. In doing so, it’s possible to adapt and evolve with the landscape for the benefit of both our organisations and our employees.

Find out how ServiceNow can help you transform your workforce.

¹ IDC Research, Spending on GenAI Solutions in Europe Will Exceed $30 Billion in 2027, Driving the Overall European AI Market (doc #EUR251966524), March 21, 2024