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Half of UK tech leaders considering Generative AI for shortages

07 February 2024

Around half of UK tech leaders (51%) are considering Generative AI to combat skills shortages, according to research commissioned by talent platform Gigged.AI and carried out by Sapio Research.

The firms interviewed over 250 senior executives across the UK during the second half of 2023 and found that 91% are experiencing a tech skills shortage, with 57% saying the situation has worsened compared to 2022.  

Meanwhile, a third of organisations (34%) cited the inability to find qualified candidates as the primary cause, with 32% of respondents attributing the shortage to budget constraints. 

With 58% of interviewees experiencing a hiring freeze in 2023, 24% of tech leaders said they were planning to use Generative AI to upskill their existing workforce. However, 44% said they had ethical concerns about replacing their employees. 

On the subject of digital transformation, while 72% of organisations are progressing digital transformation this year, 45% expect delays due to tech skills shortages. 

According to the study, 37% of respondents said that software development and cybersecurity skills are being most affected within their organisations by the tech skills shortage, followed by digital marketing (36%), and data engineering (27%).

Gigged.AI CEO and Co-founder Rich Wilson said, β€œThe findings of our survey show how prominent Generative AI has become for tech leaders in a relatively short space of time.”

Wilson added that in the face of the growing tech skills shortage, businesses need and are already planning innovative strategies to tackle the industry-wide challenge.

With 58% of interviewees experiencing a hiring freeze in 2023, 24% of tech leaders said they were planning to use Generative AI to upskill their existing workforce.  

On the subject of digital transformation, while 72% of organisations are progressing digital transformation this year, 45% expect delays due to tech skills shortages.  

37% of respondents said that software development and cybersecurity skills are being most affected within their organisations by the tech skills shortage, followed by digital marketing (36%), and data engineering (27%).