A recent report by Fiverr’s 2024 UK Workforce Index reveals that a majority of UK businesses are willing to pay significantly higher wages to candidates with expertise in artificial intelligence (AI). The study, based on a survey of 2,200 UK business decision-makers, knowledge workers, and freelancers, highlights the growing demand for AI skills in the job market.
According to the report, hiring managers are willing to offer an average of 45% higher wages to individuals with demonstrable expertise in AI, particularly in areas such as natural language processing, AI content creation, and chatbot development. However, finding professionals with these specialized skills remains a challenge, with over 40% of business leaders stating that they struggle to find the right AI talent among full-time employees.
The study also reveals that low-skilled talent, in general, is the top barrier to hiring for nearly half of the respondents. AI skills specifically are cited as the most in-demand, with 32% of business leaders identifying it as the skill most lacking in the UK workforce. Social media, which held the third position in 2023, has dropped to third place.
The most sought-after AI skills identified in the survey include AI content creation and ChatGPT, needed by 35% and 32% of respondents, respectively. Other in-demand skills include AI chatbot building (29%), proficiency with the AI image generator Midjourney (25%), and AI image processing (21%).
The report emphasizes that the willingness of companies to offer substantial pay raises for AI expertise reflects the recognition of the transformative potential of AI technologies across various industries. Companies that prioritize the development and integration of AI capabilities are likely to lead in innovation and efficiency, setting benchmarks for the future of work.
Donal McMahon, vice president of data science at job site Indeed, notes that the demand for AI skills is not limited to the UK but is echoed globally. Companies worldwide are actively seeking employees with AI knowledge who can adapt to new and emerging technologies.
The shortage of AI skills in the UK is not only impacting individual businesses but also hindering the country’s overall economic growth. The report’s findings align with previous studies that indicate the UK lags behind the rest of Europe in technical skills proficiency. A Microsoft report estimates that a delay of five years in AI implementation could result in a reduction of over £150 billion in economic impact by 2035. Insufficient digital skills have been identified as a primary factor impeding UK businesses’ digitization efforts, with 40% of companies struggling to recruit staff with adequate digital proficiency.
Despite significant investments by the UK government in digital skills, the lack of digital expertise suggests that current efforts may need to be reassessed. Offering higher wages for individuals with AI expertise could incentivize workers to upskill and bridge the AI skills gap.
The UK’s AI sector already employs over 50,000 people and contributes more than £3.7 billion to the economy annually. By 2035, the UK AI market is projected to exceed $1 trillion. The Department for Education has found that AI could automate between 10% and 30% of jobs, making it crucial for businesses to bring in employees who can implement automation and drive efficiency and revenue growth.
The shortage of AI skills in the UK’s information and communications sector, which encompasses AI, is reflected in the high number of “skills-shortage vacancies.” This figure has risen from 25% in 2017 to 43% in 2022, the latest year for which data is available. Reasons for the skills shortage include high workloads preventing upskilling, lack of budget for training or recruitment, and teams working in silos, hindering cross-team learning opportunities.