Tackling the global AI skills shortage: Why businesses must rethink their talent pool and tap new wells of expertise

Companies are desperately in need of AI talent. But are they doing enough?

A recent report from the recruitment firm Harvey Nash of over 2,000 technology leaders found that over half of organizations lacked the AI-related talent needed to support the huge investment in the technology in the last few years.

Indeed, practically every respondent said they were either piloting or investing in AI, which is nearly double what it was before the launch of ChatGPT. It's perhaps no surprise that respondents rated AI as the most scarce tech skill.

Similar findings emerged from the Financial Services Skills Commission’s recent report on the state of AI skills in the financial services sector. The report provides an interesting way forward, however, as while the authors argue that AI will impact practically every role, less than 1% of roles will require what they regard as “expert” AI skills.

Boosting AI literacy

It’s easy to think that when we discuss the AI skills gap, we’re talking about the super talent that companies like Meta are reportedly offering hundreds of millions to join them.

The reality is somewhat different, however. We’re in a world in which MIT research shows that 95% of AI pilots are not just failing to generate a return on investment, but aren’t generating any kind of return at all.

That’s not to say that direct AI skills aren’t valuable, and indeed, data from the Oxford Internet Institute found that demand for AI skills has grown by more than 20% in the UK in the last few years. What it means is that companies need to invest in a broader skills development effort if they’re to make the most of what AI has to offer.

The same Oxford team revisited the topic to assess how effectively companies addressed this situation. They found 21% growth in roles requiring at least one AI-related skill, but perhaps most interestingly, there was a sharp decline in the number of roles that required an AI-related qualification. Instead, skills-based hiring has come to dominate the landscape as companies look for more agile and faster ways of responding to the changing technological picture.

Making the change

Research from the University of Georgia looks at what around 50 countries are doing to help people adapt to this rapidly changing environment. They analyzed each country’s response across six key indicators. These focus on the aim of the strategy, how the goals will be met, any examples of their implementation, how success is measured, the timelines for each project, and the support on offer to each initiative.

Each nation was assessed according to the detailed nature of its plan, with high, medium, or low priority given to preparing an AI-competent workforce. Of the countries studied, only 13 were found to be giving high priority to AI education in schools or across adult education. Eleven of those were in Europe, which may reflect the continent’s stronger infrastructure for adult education and its long-standing emphasis on lifelong learning.

The United States was among 23 countries classified as giving medium priority to workforce training and AI education, often with strategic plans that were less detailed or narrowly scoped compared to the highest-ranking nations.

Beyond technical skills

Interestingly, a few countries have gone further by promoting a cultural shift toward AI awareness. Germany, for instance, is fostering a national conversation around AI literacy, while Spain has introduced AI-related learning as early as preschool.

But while technical skills remain the headline act, the researchers warn that one crucial area is being overlooked: human skills. Creativity, critical thinking, emotional intelligence, and collaboration – often dubbed “soft skills” – were mentioned by only a handful of countries, despite being widely viewed as irreplaceable by machines.

“Human soft skills, such as creativity, collaboration, and communication, cannot be replaced by AI,” the researchers explain. “Developing these will be key to ensuring that students and employees alike continue to have a meaningful role in the future workforce.”

The organizational response

The Financial Services Skills Commission recently produced a Future Skills Framework to help guide the organizational response to the skills shortage. The researchers outline thirteen critical skills that are split between technical and behavioral.

These range from data analytics and software development on the technical side to empathy and relationship management on the behavioral side.

They then set proficiency levels alongside each skill to give organizations a clear roadmap to help them develop their existing workforce.

The framework chimes with Josh Bersin’s recent Talent Acquisition Revolution report, which shows how AI itself can help organizations identify transferable skills, surface hidden talent, and streamline the hiring process.

“While technical skills are still important, for businesses to effectively use AI today, what matters most is not whether someone has a degree in computer science, but whether they can apply problem-solving, creativity, and collaboration in a digital context,” says Burley Kawasaki, Global VP of Product Marketing and Strategy at workflow automation company Creatio.

“Skills-based hiring reflects this shift where modern businesses thrive when they value adaptability and applied skills over traditional credentials.”

It's clear that the AI skills gap is not just a shortage of high-end technical skills, but also a much broader challenge of equipping the workforce with the skills to develop and use AI effectively. Countries and companies that treat AI literacy as a baseline skill, invest in lifelong learning, and value adaptability as much as expertise will be best placed to turn investment into impact.

For employers, this means shifting hiring models toward demonstrable skills, reskilling existing staff with structured frameworks, and embracing AI-driven tools to widen the talent pool. For policymakers, it means supporting not just universities but also schools, adult education, and vulnerable workers who risk being left behind.

Unlock more exclusive Cybernews content on YouTube.