Britain’s skills gap continues to widen, with 72% of businesses reporting shortages in critical areas such as AI, data analytics and cyber security – up from 69% in 2023, according to DocuSign’s Digital Maturity Report 2024.
As a result, companies are increasingly turning to “quiet hiring,” upskilling their current employees and deploying AI tools like ChatGPT to bridge the gaps without increasing headcount. The number of companies using AI to address skills shortages has increased by 42% this year.
Despite substantial investment in digital transformation, UK businesses still face productivity challenges. Workers reportedly spend an average of two days a week on manual, low-value tasks, costing companies more than £275 million in lost productivity every year. This inefficiency also contributes to employee dissatisfaction, with 41% considering quitting their jobs due to outdated processes.
While 35% of companies plan to increase their investments in AI in the coming year, only 43% feel fully equipped to implement these technologies, with security and data protection concerns cited as major obstacles. Nevertheless, increasing efficiency through AI and digital tools remains a top priority as companies strive to align their technology investments with improved productivity outcomes.
Sheila Flavell, COO of FDM Group, emphasized the urgency for companies to support their AI investments with robust skills training. “As AI develops rapidly, companies are investing more to stay competitive. However, it is critical for companies to offer high-impact skills training so that their workforce can keep up with evolving technology. Their skills in AI, data analytics and security give them the talent needed to drive digital transformation.”
Flavell emphasized the importance of experiential learning in upskilling, which allows employees to gain hands-on experience with new technologies. “This approach not only increases productivity, but also reduces reliance on ‘quiet hiring’ and helps retain top talent by providing real growth opportunities,” she added.
As businesses navigate the challenges of a rapidly evolving digital landscape, a focus on upskilling and integrating AI solutions will play a crucial role in closing the skills gap and improving productivity. For these initiatives to succeed, however, companies must also address security concerns and ensure their workforces are adequately prepared to effectively deploy new technologies.