Assessment of the UK's Artificial Intelligence employment landscape in 2024

The UK job market is undergoing a significant transformation as artificial intelligence (AI) increasingly reshapes operational strategies for businesses. As a result, there is a growing demand for professionals possessing AI expertise to effectively utilize these technologies and enhance productivity.

Businesses are keen to integrate AI solutions into their operations to drive growth, highlighting a pressing need for skilled personnel to manage and optimize these tools. However, given the early stages of AI implementation in many sectors, not all facets of AI technology are currently in high demand. Therefore, job seekers looking to enhance their employability in the UK should focus on acquiring specific AI skills that are currently sought after in the labor market.

Demand for AI expertise in the UK: Insights from Fiverr’s 2024 workforce index

Fiverr’s 2024 UK Workforce Index, based on a survey of over 2,000 freelancers, business leaders, and knowledge workers, reveals a significant shortage of AI expertise in the UK job market. Approximately 32% of companies report a deficit of skilled professionals, particularly in critical areas like natural language processing (NLP), AI content creation, and chatbot development.

Despite increasing legal concerns regarding copyright issues related to training data for AI models, the surge in demand for AI content creation indicates a growing necessity for individuals adept at utilizing AI-driven tools such as ChatGPT to generate diverse types of content, including marketing materials and social media posts. The scarcity of qualified professionals in these domains has led companies to pursue aggressive recruitment strategies.

The Fiverr’s UK Workforce Index also underscores that a remarkable 83% of organizations are prepared to offer substantial salary increases in order to attract and retain professionals possessing the essential AI skills.

Impact of AI skills on freelancer hiring and earnings in the UK

According to Fiverr’s latest UK Workforce Index, companies are increasingly turning to freelancers with sought-after AI skills to address gaps in their workforce. This trend is accompanied by a significant rise in the freelance workforce, now comprising 22% of the UK's total employment, a 5% increase from the previous year. Freelancers are saving companies an average of 15 hours per week, with 40% of businesses considering them crucial for managing workloads.

Regional variations in freelancer integration are notable, with London and Liverpool leading the way in incorporating freelancers into their operations. The software and technology sectors, in particular, are prominent in hiring freelancers across the UK.

Beyond expedited hiring, possessing AI skills can substantially enhance earning potential in the UK. According to Fiverr's findings, professionals with AI expertise command a salary premium of 45% compared to their peers lacking these skills.

Supporting these insights, Anglia Ruskin University's study, published in Oxford Economic Papers, underscores additional benefits for job seekers proficient in AI. Male applicants with AI skills received interview invitations 54% of the time, compared to 28% for those without, while female applicants with AI skills were invited 50% of the time, versus 32% for those without. Moreover, candidates with AI qualifications were shortlisted for positions offering wages approximately 12-13% higher than those without such credentials.

Growing demand for AI skills outpaces training efforts

Randstad’s latest Workmonitor Pulse survey highlights a significant disparity between the soaring demand for AI skills and the training provided by employers. Despite a staggering 2,000% increase in job postings requiring generative AI skills since March 2023, only 13% of employees globally report receiving AI training within the past year, underscoring a critical skills gap.

The survey underscores the rising significance of AI in the workplace, with 52% of workers believing AI will enhance their career prospects and 53% anticipating its impact on their industries and roles. Already, 33% of employees integrate AI into their daily tasks, indicating its growing prevalence across diverse sectors.

The shortage of AI skills poses a threat to the UK economy despite optimistic projections from the government, which estimates the AI sector employs over 50,000 people and contributes £3.7 billion annually. However, recent reports indicate an alarming deficiency in AI skills that could impede economic growth and potentially hinder the UK's target of achieving a $1 trillion AI market value by 2035.

Microsoft's study further underscores these concerns, revealing that 70% of UK business leaders anticipate skill gaps in the coming year despite government investments. Only 28% of these leaders believe the current education system provides adequate digital training for students, with a mere 24% expressing confidence in government efforts to address the digital skills gap.

Strategies to overcome AI skills shortage in the UK

Addressing the UK's AI skills shortage requires a strategic approach focusing on enhancing training initiatives and shifting towards practical business applications. Here are key recommendations:

1. Enhancement of training programs through open source projects

 Amanda Brock, CEO of OpenUK, suggests leveraging code school graduates via open-source projects to bolster the UK tech sector. These initiatives aim to propel developers into lucrative careers by building robust portfolios that attract global tech employers. The strategy aims to transform remote UK tech workers into a talent pipeline for the AI sector.

2. Shift toward business applications

Dom Couldwell, Head of Field Engineering EMEA at DataStax, predicts a transition in AI skills demand towards practical business applications. Instead of solely focusing on technical intricacies, training should emphasize applying generative AI to solve specific business challenges and streamline workflows.

3. Utilization of low-code and no-code tools

To rapidly bridge the AI skills gap, promoting low-code and no-code AI development tools is crucial. Couldwell advocates for simplifying developer tasks and accelerating business value delivery by minimizing integration complexities. Tools like Langflow's GenAI toolkits can facilitate rapid prototyping and accelerate application deployment, enabling more professionals to engage with AI technologies effectively.

These strategies aim to expedite the development of AI skills among UK professionals, fostering a more competitive workforce capable of meeting the demands of the evolving tech landscape.

4. Advancing diversity in AI: Initiatives for inclusive workforce development

The Alan Turing Institute’s report titled "Where are the Women? Mapping the Gender Job Gap in AI" underscores the importance of promoting diversity within the AI workforce. It emphasizes the necessity of initiatives aimed at underrepresented groups to expand the talent pool and enhance the development of AI solutions. These efforts are crucial for fostering inclusivity and addressing gaps in the AI sector.