The UK skills gap continues to widen, with 72% of businesses reporting shortages in critical areas such as AI, data analytics and cybersecurity – up from 69% in 2023, according to DocuSign’s 2024 Digital Maturity Report.
As a result, companies are increasingly turning to “quiet hiring,” upskilling their existing employees and deploying AI tools like ChatGPT to fill gaps without adding staff. The number of companies using AI to address skills shortages has increased by 42% this year.
Despite significant investment in digital transformation, UK businesses are still struggling with productivity challenges. Reports suggest that employees spend an average of two days a week on low-value manual tasks, costing businesses over £275 million a year in lost productivity. This lack of efficiency is also contributing to employee dissatisfaction, with 41% considering leaving their jobs due to outdated processes.
While 35% of businesses plan to increase their investments in AI over the next year, only 43% feel fully equipped to implement these technologies, citing concerns about security and data protection as major barriers. However, boosting efficiency through AI and digital tools remains a top priority as businesses seek to align their technology investments with improved productivity outcomes.
Sheila Flavell, Chief Operating Officer, FDM Group, highlighted the urgent need for businesses to support their AI investments with strong skills training. “As AI advances rapidly, businesses are investing more to stay competitive. However, it is vital that businesses provide high-impact skills training to help their employees keep up with evolving technology. Upskilling in AI, data analytics and security ensures they have the talent they need to drive digital transformation.”
Flavell stressed the importance of experiential learning in upskilling efforts, enabling employees to gain practical experience in dealing with new technologies. She added: “This approach not only enhances productivity, but also reduces reliance on ‘quiet hiring’ and helps retain top talent by providing real opportunities for growth.”
As businesses seek to navigate the challenges of a rapidly evolving digital landscape, a focus on upskilling and integrating AI solutions is set to play a pivotal role in bridging the skills gap and boosting productivity. However, for these initiatives to be successful, businesses must also address security concerns and ensure their workforce is adequately prepared to leverage new technologies effectively.
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