Research and analysis

Report overview

Published 29 October 2025

Applies to England

Acknowledgements

The report was authored by Dr. Nisreen Ameen from Royal Holloway, University of London.

This report received support from the British Academy Policy-led Innovation Fellowship award, in collaboration with Skills England. Input from different areas and sectors helped shape the workshops designs and findings.

We thank all the workshop and roundtable experts for sharing their knowledge, insights, and experiences. Their input shaped the findings. It connected this work to the real experiences of learners, employers, educators, and community leaders in the UK. We thank organisations of all sizes. Their insights have been instrumental in shaping the narrative of this report.

The opinions expressed in this report are those of the author and do not necessarily reflect the views of Skills England.

Summary

This report explores artificial intelligence (AI) skills in the UK. It aims to guide AI upskilling, workforce planning, productivity, and economic participation.

Based on six national workshops, a senior policy roundtable, and focused research, the report:

• analyses AI adoption patterns, areas of AI skills gaps and barriers in ten key growth sectors
• identifies common barriers to AI skills development that impact organisations of all sizes
• points out issues for small and medium-sized businesses (SMEs), marginalised groups, and areas with little AI training and use
• introduces an AI skills tools package

These sectors were identified by Skills England and the ‘UK’s Modern Industrial Strategy’.

The tools are designed to help employers and training providers. They can be used to assess skills needs, plan inclusive training, and promote responsible AI practices.

The AI tools package is comprised of:

• the AI Skills Framework
• the AI Skills Adoption Pathway Model
• the Employer AI Adoption Checklist

The report uses insights from expert stakeholders and desk research. It provides an evidence-based way to evaluate AI skills readiness across different sectors. The goal is to develop inclusive, employer-responsive, and regionally balanced AI upskilling pathways. These pathways include training delivered via the workplace, formal education settings and community-based or informal routes. These findings support the UK Government’s ‘AI Opportunities Action Plan’ and efforts to build a more agile, fair, and future-ready skills system.

Findings

AI use is growing across the UK economy. This report covers AI skills needs in:

• Digital and Technology
• Health and Social Care
• Financial Services
• Advanced Manufacturing
• Construction
• Professional and Business Services
• Creative Industries
• Clean Energy Industries
• Defence
• Life Sciences

It finds that progress and skill needs vary. Some sectors are more advanced but still face gaps in ethics, governance, and interpretation. Other sectors need stronger infrastructure, training, and workforce support. The speed of AI adoption, skills needs and workforce readiness varies both between and within sectors. They depend on the organisation’s size, access to training, and location.

SMEs are disproportionately affected by capacity, cost, and awareness barriers. This can limit their ability to implement structured AI training and benefit from innovation.

The report also finds that groups that are marginalised, such as women in sectors where they are underrepresented, older workers, low-income adults, and those with limited digital skills, face greater challenges in building AI skills.

There are clear regional differences. Urban areas and innovation centres have better training systems. Rural and economically disadvantaged areas report limited or no access to AI-specific provision.

Structural barriers to AI upskilling

6 persistent barriers to AI upskilling were identified:

• inconsistent use of the term AI skills, creating confusion across employers, educators, and learners
• low foundational digital literacy in sectors with lower digital maturity
• fragmentation of the training ecosystem, with limited coordination and progression pathways
• slow curriculum responsiveness to emerging AI tools and sector-specific needs
• training costs and funding fragility, especially for SMEs and community-based providers
• limited employer understanding of workforce AI skills requirements, particularly among smaller firms and in sectors where AI adoption is still exploratory

Tools for workforce planning

The AI Skills tools package presents 3 useful tools for workforce planning and training.  These tools are developed by the report author from the insights gathered through 6 national workshops, a British Academy expert roundtable, and desk research.

AI Skills Framework

This lists AI skills required, by job level, across 3 types of skills:

• technical skills
• responsible/ethical skills
• non-technical skills

These apply to entry-level, mid-level, and managerial roles. The framework aligns with UK skills classification systems and can be adapted to any sector.

AI Skills Adoption Pathway Model

This model sets out 9 stages of AI adoption in organisations. Each stage connects to changing skill needs. Organisations can use this to track their current position and progress on using AI.

Employer AI Adoption Checklist

A self-assessment tool for organisations to:

• evaluate readiness to adopt AI
• identify skills gaps
• plan inclusive adoption strategies

These tools can be used to help organisations of various sizes and sectors. They can be used to identify skills gaps, plan training, and promote responsible AI use. They respond to employers’ needs to help prepare their workforce to adopt AI effectively.