UK companies are struggling with technology skills shortages amidst efforts to enhance digital transformation.
- 72% of firms report technology skills gaps, primarily in AI, data analytics, and security.
- Manual tasks are undermining productivity, costing £275 million annually in lost output.
- Many organisations employ ‘quiet hiring’ and AI tools like Chat GPT to bridge the skills gap passively.
- Despite increased AI investments, companies are cautious due to AI-related risks.
British firms are investing heavily in digital transformation, yet many face significant challenges in productivity and digital maturity. According to a recent report by Docusign, a substantial 72% of UK firms acknowledge technology skills gaps in areas such as AI, data analytics, and security. The research surveyed 600 decision-makers across the UK and Ireland, highlighting a growing paradox: while investment in technology rises, productivity does not follow suit.
Firms find themselves caught in a ‘Catch-22’ situation, where increasing technology investments fail to plug productivity leaks. Workers are reportedly spending 12.6 hours weekly on low-value tasks, an increase from last year’s figures. This inefficiency threatens employee satisfaction and retention, as many consider leaving jobs to escape outdated processes. Notably, £275 million in productivity is being lost annually due to these inefficiencies.
As a response, ‘quiet hiring’ and the utilisation of AI tools have emerged as strategies to manage skills shortages. Many companies allow employees to upskill and retrain, deploying AI programmes to close existing skill gaps without significantly increasing headcount. The use of tools like Chat GPT has seen a notable uptick, with a 42% rise in businesses focusing on AI to improve efficiencies.
Despite these efforts, the readiness for AI adoption remains low. A mere 43% of firms perceive themselves as well-prepared to leverage AI, with the majority lacking designated leaders for AI integration. Concerns about AI-related risks, such as security and data protection, overshadow opportunities for innovation. Only 19% of firms continually experiment with disruptive technologies despite an expressed desire to invest more in digital tools.
Ronan Copeland, Group VP and General Manager at Docusign, remarked on the dual challenges of skills shortages and productivity loss, pointing out the urgency for companies to focus on upskilling and reskilling. Julia Hobsbawm, an expert on the future of work, emphasises the need for simplicity in adopting digital tools, as businesses and workers seek effective ways to streamline operations.
Resolving technology skills shortages is crucial for UK firms to achieve digital maturity and improve productivity.
