AI Competency Shortage Hampers Growth, Claims Allianz Trade
The United Kingdom is taking a multi-faceted approach to address the growing shortage of AI skills as businesses increasingly adopt AI technologies. The strategies focus on education, talent attraction, upskilling and reskilling, policy, and cross-sector collaboration.
### Education and Talent Attraction
Recognizing that researchers often remain in the country where they are educated, the UK is leveraging its world-class universities such as Oxford, Cambridge, and Imperial College to produce a steady stream of AI graduates. To attract top AI talent from abroad, new visa options like the Global Talent and Innovator Founder visas have been introduced. Tech hubs and innovation clusters, such as London’s King’s Cross, serve as magnets for AI talent and innovation, fostering a vibrant ecosystem for start-ups and established firms alike.
### Upskilling and Reskilling
The government’s annual “One Big Thing” campaign will focus on AI this autumn, aiming to upskill hundreds of thousands of civil servants in AI essentials and responsible use. A proposal developed with over 40 firms and policy experts recommends creating synthetic datasets hosted in the Financial Conduct Authority’s (FCA) Digital Sandbox. This allows mid-career professionals in finance and professional services to gain hands-on AI experience using realistic, privacy-preserving data. Businesses are also turning to online learning platforms like Alison’s Learning Management System (LMS) to provide AI training, helping employees adapt to automation, predictive analytics, and new AI-driven roles.
### Policy and Cross-Sector Collaboration
The government’s AI Opportunities Action Plan and the Modern Industrial Strategy signal a shift from hardware investment to cultivating STEM skills, AI expertise, and a tech-literate workforce. Industry collaboration, such as reports like “Unlocking AI Skills in Financial and Professional Services,” highlights scalable solutions developed in collaboration with industry, aiming to grow domestic AI capability—especially in regulated sectors—through shared resources and apprenticeships. As new roles emerge, there is a push to develop clear training frameworks and break down silos between IT/data teams and other business functions.
### Challenges and Ongoing Needs
The pace of AI advancement outstrips the workforce’s ability to adapt, underscoring the need for continuous learning and agile policy responses. AI’s disruptive effects on jobs vary by industry, requiring tailored reskilling and workforce planning to avoid long-term talent gaps. Continued investment in education, training, and immigration policies is critical to maintaining the UK’s competitive edge in the global AI race.
According to a report by Allianz Trade, only 42% of firms now expect export growth due to US tariff uncertainty. More than two-thirds (68%) of UK firms are planning to ramp up their recruitment efforts specifically to grow headcount in AI skills over the next year. 94% of UK businesses reported a general skills shortage in their industry. The report by Allianz Trade indicates that cyber incidents, data breaches, ransomware attacks, and IT disruptions are the biggest worry for companies globally in 2025, according to the Allianz Risk Barometer. UK businesses are among the most ready globally to deploy capital to curb the impact of increased tariff-related challenges.
Maxime Darmet, Senior Economist for the UK, US, and France at Allianz Trade, stated that the UK, being one of the few countries to have secured a trade deal with the US, faces a unique position, with the reduction in the US-trade weighted tariff rate being a step forward but still leaving UK exporters at a disadvantage compared to pre-Trump administration levels. The full report, capturing responses from more than 4,500 companies across multiple countries, can be found at Allianz Trade Global Survey 2025.
- In the face of growing competition, UK businesses are not only increasing their recruitment efforts for AI skills but also turning to platforms like Alison's Learning Management System for AI training, recognizing the importance of adapting to automation, predictive analytics, and new AI-driven roles.
- As the UK strives to maintain its competitive edge in the global AI race, it is introduced new visa options like the Global Talent and Innovator Founder visas, paving the way for the influx of foreign AI talent and fostering a vibrant ecosystem for AI innovation, particularly in tech hubs and innovation clusters.
