Report reveals major barriers to UK workforce AI skills development

Experts say fragmented funding and poor coordination hinder national AI skills growth.

Government research finds widespread confusion and inequality in AI training across England.

A new government analysis has identified deep-rooted barriers preventing widespread development of AI skills in the UK’s workforce. The research highlights systemic challenges across education, funding, and awareness, threatening the country’s ambition to build an inclusive and competitive AI economy.

UK experts found widespread confusion over what constitutes AI skills, with inconsistent terminology creating mismatches between training, qualifications, and labour market needs. Many learners and employers still conflate digital literacy with AI competence.

The report also revealed fragmented training provision, limited curriculum responsiveness, and fragile funding cycles that hinder long-term learning. Many adults lack even basic digital literacy, while small organisations and community programmes struggle to sustain AI courses beyond pilot stages.

Employers were found to have an incomplete understanding of their own AI skills needs, particularly within SMEs and public sector organisations. Without clearer frameworks, planning tools, and consistent investment, experts warn the UK risks falling behind in responsible AI adoption and workforce readiness.

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