A recent report from Infosys sets the scene …
Technology has never been more critical to the success of businesses across every industry. With the pace of change only advancing more rapidly, emerging technologies like Generative AI – which grew from a novel concept to front-page news in under a year – now join more established solutions like cloud computing as critical capabilities for many businesses.
The vast majority (83%) of respondents agreed that emerging technologies will impact their organisation’s long-term strategy, with 66% saying they will have a significant impact.
However, 70% believe the pace of technological advancement exceeds their workforce’s ability to learn how to incorporate it. This skills gap is hindering adoption, with one-in-three citing a lack of internal technical capabilities as a key barrier to embracing new technologies.
To close these gaps, many businesses are increasing budgets for employee training and upskilling. Companies that invest in developing their workforce’s technical capabilities while adapting to new employee dynamics will gain a competitive advantage in leveraging emerging technologies.
Among the key findings:
- Emerging technologies are playing a major role in long-term strategic planning. Virtually all respondents (99%) said emerging tech will have a role in their organisation’s strategic planning
- Businesses are increasing spending on general and Generative AI, cloud computing and cybersecurity. This highlights an ongoing challenge, as it requires increasing budgets for both critical infrastructure and more speculative emerging technologies
- Generative AI is seen as beneficial for productivity and forecasting. However, few companies have yet integrated the technology into their workflows and processes
- The pace of change exceeds workforce readiness. Nearly three-quarters (71%) of respondents admitted to worrying that the pace of technology change exceeds their organisation’s ability to learn how to incorporate it into operations
- Many organisations are facing a skills ‘deficit’ when it comes to key technologies. Respondents showed an 8% gap between how important advanced statistical analysis is considered and the current skill level of the workforce, and a 6% gap for Machine/Deep Learning
- Executives believe they can gain a competitive advantage if they work to close the skills gap. Lack of internal technical skills was cited as the top challenge holding businesses back from making more effective use of emerging technologies
“Data and AI technologies will help companies rapidly amplify human potential, open untapped market avenues and contribute to the overall economic value of the enterprise,” said Sunil Senan, Senior Vice President, Infosys Topaz. “This will lead to business outcomes unlocking efficiencies at scale, empowering the ecosystem and accelerating growth.”
Highlighting the strategies essential for driving successful Digital Transformation across the continent, Armand Leblois, Regional Manager at Cisco Network Academy Europe; Sheila Flavell CBE, Chief Operating Officer of FDM Group; and Stuart Munton, Chief of Group Operations and Technology at AND Digital, all underscore the critical importance of investing in training, fostering collaboration with academic institutions and integrating hands-on AI practices into European businesses.
Armand Leblois, Regional Manager, Cisco Network Academy Europe
Europe is facing an increasing digital talent shortage and getting ahead of this is crucial to ensure it stays competitive on a global stage. The 2023 EU Digital Decade report revealed Europe’s position in the global ICT market ecosystem could be substantially improved – its share of global revenue in the ICT market has fallen in the last decade, from 21.8% in 2013 to 11.3% in 2022, while US’s share increased from 26.8% to 36%. The fast advances in AI will only heighten this divide.
In our latest AI Readiness Index report, we found for European AI talent readiness, intentions outpace abilities, with only 10% pacesetters, 33% chasers, 49% followers and 8% laggards.
To bridge this gap, it is crucial to increase the velocity with which talent becomes available in the market, from entry-level to the highest level of specialisation. This means doubling down on the traditional paths that have so far been at the core of talent production (i.e. traditional formal education) but also investing heavily in the development and recognition of alternative training schemes.
At stake here is our ability to ensure that the Digital Transformation of society and our economy are synonymous with opportunity, prosperity and above all: inclusion. This means that investment in education and training is crucial, both in reskilling to equip the current workforce with AI-related skills, and also in upskilling to ensure that new faces and new perspectives harness the knowledge required to fully participate in transforming our world.
Key to this is making learning, especially for basic level skills, available when and where the learner can best leverage the content in their daily life.
Leaders must push for rapprochement between industry and academia at all levels and encourage and foment collaboration where possible. The interweaving of industry certifications and micro-credentials with curricula and diplomas at secondary, vocational and tertiary education levels must be accelerated. Too often entry-level talent’s access to the job market is slowed by the disconnect that exists between the employer down the street, unaware or hesitant as to their digital needs and the student, who struggles to demonstrate skills and competencies acquired succinctly.
Collaboration between companies, research institutions and industry bodies can also help address common challenges and share best practices, by building out AI knowledge and forecasting shifts in trends. The recent report published by the Al-Enabled ICT Workforce Consortium demonstrates the impact of Generative AI on ICT jobs, for example, will make continuous learning a necessity for many job roles.
With the Digital Decade in full swing, it is essential European decision-makers be proactive connectors between industry and academia, and promoters of innovation in training and skilling. This is core to ensuring the successful adoption and implementation of AI technologies, and an inclusive Digital Transformation for all.
Sheila Flavell CBE, Chief Operating Officer, FDM Group
Businesses across Europe are already reaping the benefits of AI and automation as part of core functions such as data analysis, so appetite for adoption won’t dwindle any time soon. However, a shortage of AI talent is likely to hold businesses back as they rush to scale AI implementation and push for greater efficiency, so it is important to tackle these shortfalls as AI itself continues to evolve.
With AI’s rapid evolution, some businesses have been swept up in the hype cycle and while AI is here to stay, there have been cases of implementation for implementation’s sake.
Before carrying out an AI project, businesses should first consider if AI is necessary for what they’re trying to achieve before pouring investment and resources in. This will give them time to bridge any talent shortage they are facing and upskill staff. Alongside AI experts, successful adoption relies on following industry safeguards and guidance, such as the EU AI Act, to mitigate risks and ensure safe and trustworthy implementation.
Collaboration between government, industry and the education sector is an important step to overcoming the talent shortage, weaving AI skills into the curriculum for students, and offering training programmes for reskilling and upskilling, underpinned by investment.
Building a UK-wide workforce of AI experts also relies on tapping into underrepresented talent pools such as ex-forces, returners and graduates, who each present unique, transferable skill sets. Those who possess the skills and aptitude for AI are key to future implementation projects, so businesses should support them with training and reskilling opportunities.
As part of this, experiential learning should form part of the training approach, creating simulated real-world environments for people to learn using industry standards technologies, applications and techniques to prepare them to transition into the workplace as AI leaders. Equipped with the latest AI skills, these people will be crucial to overcoming Europe’s AI talent shortage.
Stuart Munton, Chief for Group Operations and Technology, AND Digital
AI advancements show no signs of slowing down, so to effectively overcome the talent shortage and ensure AI’s successful adoption and implementation, European decision-makers must prioritise focused reskilling and upskilling initiatives.
As AI continues to dominate the tech landscape, the challenge not only lies in embracing Digital Transformation but also in preparing the workforce with the necessary skills to navigate this shift.
AI is truly transformational with the potential to revolutionise business operations and significantly impact economies, but to fully leverage the benefits, business leaders must embrace a forward-thinking mindset and be proactive in incorporating AI into their business strategies.
Individuals who are already skilled in understanding and integrating AI technologies will be highly sought after to lead AI development programmes, making it crucial for companies to invest in comprehensive training programmes that go beyond theoretical knowledge.
These programmes must emphasise hands-on experience which will enable employees to develop practical expertise in AI applications, empowering them to confidently incorporate AI into their day-to-day.
Initiatives like the Digital Skills Forum play a pivotal role in bridging the talent gap. Through transferring skills and encouraging learning communities, we can ensure that Digital Transformation reaches all areas which will empower local economies and create a more inclusive tech landscape.
But one size doesn’t fit all. Businesses must adopt diverse strategies to empower all individuals to thrive in the evolving AI landscape. AI has the potential to level the playing field in the workplace by closing the gender gap in tech.
According to the AND Digital Rewards & Resilience report, 79% of senior women in tech feel successful, a testament to their commitment and potential in the industry. But to sustain and elevate this success, businesses must invest in targeted skills training for women.
By adopting a people and innovation approach, businesses can embrace an inclusive environment that will empower both men and women alike to thrive in the evolving AI landscape.
