A new report has revealed AI is transforming jobs across the economy but employers can’t keep up and harness it in the best way. However, three new tools – developed by Dr Nisreen Ameen, Royal Holloway, University of London – in partnership with Skills England, and through funding provided by the British Academy’s Innovation Fellowships scheme – will help support wider and more responsible AI adoption.
It is estimated that AI adoption could boost the UK economy by up to £400 billion by 2030 through enhancements in innovation and workplace productivity. The new report, published by Skills England, lays bare major challenges with upskilling for different sectors.
For example, AI opportunities are opening out for construction, including drone-assisted surveying for land assessments, and augmented reality for on-site safety simulations. But adoption is slow, with a lack of basic digital literacy identified as a key issue for the sector.
With creative industries, AI is available for content creation and digital storytelling. However, the report indicates that too many freelancers and smaller employers are using the technology without training, sparking worries over quality control and originality.
And while AI is being applied in many areas in the UK for advanced manufacturing sector – including with automation, predictive maintenance, and robotics – it faces a growing AI skills gap exacerbated by an ageing workforce.
A key common barrier to adoption is poor employer understanding, particularly among small and medium sized enterprises (SMEs), of what is meant by AI skills and their staff need to learn.
“AI has the power to transform our economy — but only if people have the right skills to utilise it effectively,” says Jacqui Smith, Minister for Skills. “This report makes clear that too many employers are still unsure how to begin their AI journey. That’s why, through Skills England, we’re working hand-in-hand with industry to equip the workforce with the tools they need for the future. By doing so, we’re not just preparing our economy for the jobs of tomorrow — we’re raising living standards and putting more money in people’s pockets as part of our Plan for Change.”
The report has introduced three brand new tools to support wider and more responsible AI adoption:
- The AI Skills Framework identifies relevant technical, responsible, and non-technical skills needed for different job roles and at different levels.
- The AI Skills Adoption Pathway Model shows how organisations typically progress through stages of AI adoption, from initial awareness to strategic scaling.
- The Employer AI Adoption Checklist provides structured prompts to help employers assess their AI skills readiness, identify workforce gaps, and upskill. It supports adoption of tools such as ChatGPT, image generation systems, and document summarisation platforms.
Phil Smith, Chair of Skills England, added: “It’s an absolute necessity that we build an AI and digitally confident nation helping to improve our productivity and competitiveness. While a huge variety of AI technology is becoming available, our report shows that too many employers are currently struggling to reap the benefits. The new tools will help employers and training providers map skills needs and make sure the right training is in place. They will be particularly useful to SMEs – who are vital to unlocking AI growth potential but typically won’t have big HR and staff training teams to get to grips with the problem.”
“AI is reshaping the world of work across sectors, but without the right skills, too many people and businesses risk being left behind,” said Dr Nisreen Ameen, from Royal Holloway, University of London. “This report provides a clear, evidence-based foundation to help employers, educators, and policymakers build more responsive upskilling pathways. By investing in practical, accessible AI skills development, we can support workforce readiness, boost economic productivity, and ensure the benefits of AI are widely shared across the UK.”
Some 7.5 million UK workers are set gain essential AI skills by 2030 through a new government-industry partnership with major tech players.
Leading technology companies, including Google, IBM and Microsoft, have committed to making high-quality training materials widely available to workers in businesses – large and small – up and down the country free of charge, over the next five years.
Skills England is working with the Department for Science, Innovation and Technology (DSIT), which is leading this initiative, to support achievement of this target.
It will use the AI report to support the development of next steps for the initiative, continuing work towards the government’s ambitious AI Opportunities Action Plan, published in January 2025.
