Insights

Overcoming the AI skills gap: Insights from the front lines

As AI continues to gain momentum in the global business landscape, companies are rushing to adopt this transformative technology. However, UST's latest survey reveals that the implementation journey hasn't been smooth. A major hurdle is the glaring shortage of skilled AI expertise, both internally and externally, with 76% reporting a severe lack of AI professionals within their organizations.

In this blog, we dive into our survey findings and explore the significant AI skills gap that large organizations face.

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Analyzing the AI skills gap

Even though decision-makers at large companies are on board with AI implementation, they struggle to find the right talent and expertise to make it happen. The AI survey findings highlight this critical challenge, with over three-quarters reporting an in-house AI talent shortage and two-thirds believing there are insufficient external advisors on AI implementation.

• Key in-house skills lacking

When asked about the skills currently lacking in organizations, the most pressing deficit area includes data science/analysis, with 47% of companies identifying this as a key area of need. Analytical thinking is also in short supply, cited by 43% of respondents, followed closely by problem-solving skills at 40%. These gaps underscore the difficulty companies face in finding talent that can understand and apply AI in ways that drive meaningful business outcomes.

If we zoom in to view this geographically, US companies are particularly struggling with a shortage of people skills, ranking this as their second most critical gap. In India, the creativity necessary for innovative AI solutions is notably lacking, which could stifle the ability to leverage AI in new and disruptive ways. Meanwhile, companies in the UK are encountering difficulties in sourcing adequate coding and programming talent, a fundamental skill set for any successful AI implementation.

• Need for external guidance

There is a clear call for help when it comes to AI implementation. The AI survey reveals almost all companies struggle with the strategic direction of their AI efforts. A staggering 89% of businesses report needing external guidance on implementing AI effectively, while 90% express uncertainty about where AI can be most beneficial within their operations.

Most companies already rely on some form of external assistance. About two-thirds use a mix of internal and external developers, 15% rely solely on external providers, and only 21% handle AI development entirely in-house. The main motivations for turning to third-party expertise are that it is considered cheaper than in-house (38%) and the lack of internal training capabilities for internal upskilling (31%).

These findings point to a global skills gap that could slow down the AI revolution unless organizations can find ways to attract, train, and retain the necessary talent to secure the AI workforce for future needs.

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Strategies for bridging the AI skills gap

The AI skills gap poses a significant threat to the progress of AI-driven transformation. As technology advances rapidly, the shortage of skilled professionals could hinder the ability of organizations to leverage AI's potential. In response to this challenge, UST's survey highlights three key strategies that respondents believe government intervention should focus on to secure the future AI workforce.

First, providing greater incentives for businesses to invest in research and development (58%) would encourage innovation and skill-building. Second, fostering increased collaboration among the public, private, and educational sectors (58%) would help bridge the skills gap by aligning efforts across different areas. Finally, supporting the expansion of STEM programs in schools and higher education (55%) is crucial for developing an AI talent pipeline equipped to meet the future demands of the AI-driven world.

Heather Dawe, UST's Chief Data Scientist, points out that as digital transformation accelerates, the demand for skilled professionals outpaces supply, with technology evolving faster than the skills needed to use it. Identifying where the gaps are can help companies target industries and business functions facing a digital skills shortage and encourage AI training initiatives and education programs to develop new talent. Organizations must open pathways for people from diverse backgrounds and regions to close the AI skills gap. Similarly, a World Economic Forum report emphasizes that AI reskilling must be a strategic priority for organizations to overcome the global AI skills gap. It underlines the importance of fostering a cultural shift within companies to create opportunities in AI workforce development.

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Wrapping up

The survey findings underscore the urgency of addressing the AI skills gap. The AI talent shortage has the potential to impede the full utilization of AI technologies significantly, ultimately stifling growth and innovation. Organizations must prioritize investment in upskilling and reskilling their workforce, ensuring that employees have the necessary expertise to harness AI's potential.

At UST, we believe in nurturing AI talent through a culture of continuous learning and growth. Investing in people can empower them to give back to the community by creating innovative solutions that counter global challenges. Building comprehensive training and education programs in partnership with academic institutions is crucial in closing the global AI talent gap, enabling businesses to stay competitive and fully capitalize on the transformative power of AI. Our experts work at the cutting edge of AI and collaborate with top academic institutions like MIT CSAIL and Stanford SAIL Labs to accelerate innovation and the pace of change.

The 'AI in the Enterprise' survey spans insights from the US, UK, India, and Spain. Through the perspectives of senior IT decision-makers in large organizations, the research captures the current state of AI adoption – including the benefits and challenges of AI for businesses and workforce trends.

Download the complete survey report for further insights on addressing the AI skills gap. This resource provides a roadmap for organizations looking to harness AI's full potential in their digital transformation journey.