Technology: Skilled Workers

The recent Skills England Annual Skills Report and Sectoral Skills Needs Assessments 2026 concludes that the skills system has not kept pace with rapid technological change, with artificial intelligence (AI), automation and digital skills shortages intensifying across the economy.

It highlights growing demand for digital, analytical and AI-related skills, which cannot be met by the current training pipeline alone and requires upskilling and reskilling of the workforce.

The Skills for AI: What works for AI upskilling in the UK research programme finds that AI adoption is outpacing workforce capability, and that skills are being developed unevenly and often informally, with limited time, resources and structured training in many organisations.

In response to these issues government is working with industry to identify and respond to the UK’s digital and AI skills needs.

The UK AI Hardware Plan identifies the skills needs of the UK’s AI hardware sector and how we will develop the skills required to build AI infrastructure.

Skills England are actively working with employers to shape relevant training pathways. We have introduced an AI and automation practitioner apprenticeship and three AI leadership apprenticeship units and are supporting initiatives such as DSIT’s AI Skills Boost programme.

The Government’s TechFirst programme will help boost the pipeline of skilled workers. At least 400,000 students from some of the most disadvantaged schools will be supported to take up AI and tech skills in efforts to tackle skills needs while ensuring opportunities are provided to those who need them the most.

This approach to tackling digital and AI skills gaps is aligned with the Industrial Strategy and associated sector plans and is focused on identifying where demand is greatest and ensuring provision meets employer needs.