Mind the AI skills gap: bridging it is now an urgent task

Students are ill-equipped for the technological changes awaiting them at work

Students are ill-equipped for the technological changes awaiting them at work

22 Mar 2025, 7:58

Prime minister Sir Keir Starmer professed AI would drive “incredible change” as he launched the AI Opportunities Action Plan earlier this year. In reality that change is already here, and we need to take action fast.

One of the most glaring signs of the UK’s slow response is the widening AI skills gap. As AI rapidly transforms industries, the demand for skilled professionals is outpacing supply.

Starmer was reminded of this as the government’s bold aim to generate upward of 13,000 jobs within the technology sector was quickly humbled by industry figures highlighting a concerning gap between existing skills levels in the workforce and the sheer quantity of experts needed to fulfil these roles.

If the UK is serious about becoming one of the “great AI superpowers”, addressing the country’s chronic skills gap is a much-needed first step.

As the government’s first-ever AI minister from 2023-24 I was responsible, among other things, for the inaugural AI Safety Summit at Bletchley Park. I’m concerned the UK’s workforce, and particularly its graduates, are not equipped for the age of frontier tech.

The role of universities

Undeniably, universities are key players in closing the skills gap, acting as the training ground for the next generation of tech professionals to succeed in AI-driven roles.

Yet, a significant disconnect exists between education and the skills required in the workplace. A survey by Hult International Business School revealed that 85 per cent of UK graduates said they wished their studies had better prepared them for the workplace, while 89 per cent of employers said they avoid hiring recent graduates altogether.

This gap highlights the pressing need for universities to align their curricula with the changing demands of employers.

We believe that one of the best ways to bridge this divide is through better collaboration with the private sector, particularly startups, which by their nature are agile, dynamic and provide innovative solutions to the age-old problem of skilling.

Once we have successfully closed the gap, the next step will be to overhaul the recruitment system. Right now, it’s failing to prioritise the skills necessary to thrive in an AI-driven world, with long-winded, complicated processes for applicants.

North East potential

Despite these challenges, efforts are underway to address the AI skills gap. One such initiative is the Skill Up North East campaign, launched by Lumi.network. This initiative is designed to simultaneously upskill students from the North East with human-AI collaboration, whilst creating routes to internships and jobs. 

But the North East is failing to live up to its full potential to become one of the UK’s most dynamic tech hubs.

In just over five years, the number of tech companies in the North East has risen by over 32 per cent, booming as a tech hotspot. Combined with its vibrant and hardworking culture, world-class universities and ambitious talent pool, the North East should be a global hub for innovation.

Yet it is, like many other regions, falling victim to the UK’s skills gap and broken recruitment system. Solve this and sure enough, investment will flow there.

Our campaign is set to engage 100 college and university students in a series of 10 hackathon-like ‘quests’, each focused on solving real-world challenges in fields like cybersecurity, financial services and AI. Strong applicants with comprehensive skills profiles will then be matched with potential employers for internships and full-time roles in the region.

A call to action

Closing the AI skills gap is an urgent priority. Initiatives like Skill Up North East show that with the right blend of education, industry collaboration and a focus on practical, skill-based training, we can bridge this gap. But this is just the beginning.

The UK must continue to invest in and expand such initiatives across the country, ensuring that students, workers, and employers are equipped to succeed in an AI-powered world.

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