Research and analysis

AI Labour Market Survey 2025 report: executive summary

Published 28 January 2026

Executive summary

Gardiner & Theobald (G&T), a UK-based consultancy, has been commissioned by the Department for Science, Innovation and Technology (DSIT) to examine the UK AI skills labour market in 2025. This report builds on a previous study undertaken in 2020, and uses surveys and interviews to assess trends, skills gaps, and evolving skills needs in the sector. The findings contribute to the delivery of the AI Opportunities Action Plan (2025), aimed at accurately identifying AI skills shortages and supporting policy decisions to strengthen the UK’s AI ecosystem. However, subsequent findings or recommendations do not represent government views or policy and are instead G&T views.

The UK AI sector is facing a critical skills gap that threatens its long-term growth and global competitiveness. The rapid expansion of AI applications is driving increasing demand for skilled professionals, yet the availability of suitably trained talent is failing to keep pace. This disconnect between industry needs and workforce capabilities is creating significant hiring challenges, stalling innovation and limiting business performance. Addressing this skills gap requires a multi-faceted approach that enhances education, training, recruitment strategies, and workforce diversity.

The reported skills gap as it stands is significant. 97% of respondents surveyed identified at least one gap in skills in the AI labour market. 57% of businesses reported a technical skills gap, while 30% reported a non-technical skills gap (skills that do not require specialised tools, techniques, or knowledge such as programming, engineering or modelling). The most significant gap is in understanding AI concepts and algorithms, with the percentage of respondents identifying this as a skills gap increasing from 55% to 60% over the past 5 years. Critically, 28% of surveyed organisations report that technical skills shortages have impacted their ability to achieve business goals, reinforcing the urgent need for targeted interventions.

To address this gap, alternative pathways into AI careers are expanding. Apprenticeships have risen from 3% of AI hires in 2020 to 19% in 2025, providing structured, experience-based training. However, despite this progress, the gap between theoretical knowledge and practical application remains a major challenge. The increasing reliance on informal training further highlights this issue, with 88% of organisations using on-the-job training instead of structured education and training programmes. Notably, only 13% of graduate schemes include AI training, underscoring the inadequacy of formal education routes in preparing students for industry roles.

The skills gap is further exacerbated by the accelerating adoption of AI technologies. The use of Natural Language Processing (NLP) has surged by 34% in the last 3 years, and 22% of organisations now utilise all five AI types included in the survey. Looking forward, 57% of respondents plan to adopt Agentic AI within the next 3 years, intensifying the need for skilled specialists. However, talent supply is not keeping pace, leading to increased recruitment difficulties which are slowing industry progress.

Despite the persistent reliance on academic qualifications — particularly PhD and master’s degrees for technical roles — AI skills requirements are becoming more complex.Data science expertise has grown in prevalence, with the proportion of businesses employing professionals in this field increasing from 48% to 66%. While computer science remains the dominant qualification, AI roles are increasingly incorporating social sciences such as psychology and philosophy, reflecting a greater focus on human intelligence and ethical considerations. This broadening of required skills places further pressure on an already constrained talent pipeline.

Recruitment challenges remain, with 35% of organisations struggling to fill AI roles. The main barriers include candidates lacking work experience (31%) and insufficient technical skills (30%). Senior positions are particularly difficult to fill, reflecting a shortage of experienced professionals. These shortages directly impact business performance, hindering innovation and AI adoption across multiple industries.

International recruitment serves as one means to mitigate these shortages, with 38% of businesses hiring talent from outside the UK.The main drivers for international hiring include accessing specialised skills, securing top talent, and cost efficiency. However, organisations face obstacles such as visa processing delays, high costs, and security clearance requirements, all of which limit the ability to attract overseas AI expertise. Addressing these issues through streamlined visa policies and international collaboration could alleviate hiring difficulties and enhance the UK’s AI competitiveness in the short-term.

Workforce diversity further exacerbates the skills gap, as underrepresentation continues to limit the available talent pool.Women account for a decreasing proportion of AI roles – dropping 4 percentage points since 2020 to 20% in 2025. Meanwhile, 41% of firms do not employ people from minority backgrounds.  Additionally, fewer organisations are employing non-UK nationals, with a 10% increase in firms reporting no international hires. Disabled individuals remain underrepresented, and while LGBTQIA+ inclusion is improving, broader diversity barriers persist. Expanding workforce pathways beyond traditional academic routes could improve representation and make AI careers more accessible to underrepresented groups.

While progress has been made in diversifying entry routes and enhancing training provisions, this report recommends several key interventions that government could consider based on these research findings. Expanding AI apprenticeships in collaboration with industry partners would help bridge the gap between education and practical experience while also improving diversity. Formal education programmes could better align with industry requirements, incorporating ideas like more dynamic digital learning platforms in order to keep pace with technological change. Additionally, streamlining visa processes for international talent and fostering government-industry collaboration to develop AI internships and job opportunities could help address workforce shortages.