AI skills investment could boost the UK economy by £80 billion – but there's still a long way to go before firms can capitalize on the technology

The government should create financial incentives to encourage employers to provide AI skills training, according to a new report.

Financial modelling by the Learning and Work Institute (L&W) and The Rigby Foundation found that the UK is well placed to adopt and scale AI, but unlocking AI’s full economic potential will only be realized by increased investment in skills training.

Based on the Office for Budget Responsibility’s (OBR) central scenario, the report's financial modelling finds that comprehensive AI upskilling could help deliver an economy-wide productivity boost of 2.3% by 2035.

This, the report noted, would generate an £80 billion boost to the UK economy.

“The UK’s AI advantage depends on ensuring that the leaders and workers who make up our economy at large have the skills to make the most of these new technologies. AI has transformative potential, and the gains are within reach," said Stephen Evans, chief executive of the Learning and Work Institute.

"By building basic digital skills across the working-age population and updating technical qualifications faster, we can turn widespread enthusiasm for AI into real productivity growth. We need employers to invest in training as much as AI, backed by an agile skills system, to make the most of the huge potential ahead.”

As part of the report, a YouGov survey found that while 85% currently use AI in some capacity, only 18% use it 'extensively' within their operations.

Large firms lead the way, with 25% using AI extensively, compared with just 11% of small businesses – a quarter of whom have yet to adopt AI at all, compared with 3% of large enterprises.

Researchers said this could be improved by strengthening digital literacy and boosting leadership and management capability, most notably by incentivizing employers financially.

AI skills training in the spotlight

The UK government is well aware that its significant AI ambitions will mean boosting skills, and earlier this year announced plans to train 10 million people in AI by 2030.

Participants will learn how to use basic AI tools in the workplace, such as using AI for drafting text, creating content, or completing administrative tasks.

However, researchers are calling for more incentives for employers – including a Skills Tax Credit that would provide a 20p credit for every £1 spent on accredited training.

Under these proposals, it would have a 30p 'AI super-rate' until 2030 to drive urgent adoption.

Meanwhile, the government should create a dedicated AI Skills Intelligence Unit to provide practical AI applications and work with employers to consider quality 'kitemarks' for non-accredited training.

“AI is the biggest growth opportunity in the UK and the moment to act is now. The investment needed is minimal compared to the size of the prize," said Steve Rigby, CEO of Rigby Group and chair of the Rigby Foundation.

"An £80 billion return on investing in our workforce is within reach, and SMEs and Government together can make this AI transition a success story for the whole economy. The new administration has a golden opportunity to reform the current skills system and drive immediate, productive investment in human capital.”

FOLLOW US ON SOCIAL MEDIA

Follow ITPro on Google News and add us as a preferred source to keep tabs on all our latest news, analysis, views, and reviews.

You can also follow ITPro on LinkedIn, X, Facebook, and BlueSky.