Earlier this year, the UK government set out its strategic plan for AI. All fifty of Matt Clifford’s recommendations were incorporated to build the AI Opportunities Plan. The plan’s content is a pragmatic, achievable and visionary framework intended to reposition the UK as a global AI superpower, capture the zeitgeist, drive growth and build renewed hope.
The £14bn investment figure is staggering: £200 million a day of private investment pledged between July 2024 and January 2025; more than £8.3 million every hour. This kind of investment is not going to be allocated overnight, nor will we see the benefits of this investment for some time. Companies investing in building data centres, for example, have many months of complex planning ahead, looking at factors such as real estate and planning permissions, sustainable power supplies and cooling systems, servers, storage, physical security and cybersecurity as well as connectivity providers. Some of the investments allocated towards R&D, talent development and integration across public services will also take time.
Meanwhile, AI investment across Europe is gaining pace. France revealed a €109 billion investment, while in Germany, Microsoft announced a €3 billion investment. The EU has announced InvestAI with a €200 billion projected budget, while Spain and the Netherlands have also announced major investments. Outside of Europe, we see the US, China and other countries in Asia forging ahead.
While there are distinct ‘first to market’ advantages for countries in the AI race – from economic growth to fostering technical talent – the fear of being left behind is a more urgent driver, threatening national competitiveness, industrial resilience, and job creation.
Delaying the opportunities generated by this flurry of AI investment could impact society at a deeper level: right now, we have the chance to invest and address the skills gap as well as digital exclusion. We’re unlikely to experience another opportunity so great within our lifetime, and we have a duty – and a responsibility – to make a difference.
The impact of digital exclusion
The shortage of digital and technical skills within the workforce is one of the most prohibitive barriers to the adoption and growth of AI technologies in the UK – and to the success of the AI Opportunities Plan. The Artificial Intelligence Sector Study 2023 found that 26% of respondents identified a lack of technical skills as a significant impediment to meeting business goals. Basic digital skills are forecast to comprise the UK’s largest skills gap by 2030, according to a 2023 report from the House of Lords Communications and Digital Committee. The University of Birmingham quantified the economic cost of the UK’s digital skills shortage as reaching over £27 billion by 2030.
The Essential Digital Skills Framework explains digital skills in more depth, referring to the ability to use digital devices, communication applications and networks to access and manage information. They focus on communicating; handling information and content; transacting; problem solving and being safe and legal online. But the skills were outlined in 2018, when the digital environment was very different.
A lack of digital skills is a significant contributing factor to digital exclusion – limited access to information and services, fewer opportunities for employment and social isolation. Overcoming the skills gap and addressing digital exclusion is crucial for improving productivity, supporting economic growth and alleviating pressure on public services, and essential for the health and resilience of our communities. It plays a vital role in ensuring that marginalised groups have a voice: the ONS calls out the correlation between digital exclusion and inequalities in access to opportunities, knowledge, services and goods.
The United Nations Sustainable Development Goals (SDGs) place a strong emphasis on digital skills. The Education for 2030 Framework for Action by UNESCO states that digital skills are critical for achieving SDG 4 which aims to ensure ‘inclusive and equitable quality education and promote lifelong learning opportunities for all’. Goal 8 focuses on the critical role of building digital skills to foster innovation, entrepreneurship and sustained economic growth, and SDG 9 is centred around ‘building resilient and sustainable infrastructure’, promoting inclusive and sustainable industrialisation and fostering innovation’, with digital skills a key component.
AI is one of the most significant economic opportunities of our time.
The transformative potential of AI represents one of the most significant economic opportunities of our time. Studies such as EY and Liberty Global’s “Wired for AI” project found that AI could support an additional 10 million jobs in the UK, adding £320 billion ($400 billion) annually to the UK economy.
As we reach a pivotal point in the AI lifecycle, the government clearly has an unmissable opportunity to address rather than reinforce gaps in areas such as skills and investment. Globally, research has proven that 71% of AI-skilled workers are men, compared to 29% of women; and only one in five older workers have been offered AI skills training, as opposed to almost 50% of younger workers.
There are regional disparities, too: the UK’s AI investment is predominantly clustered in London and the South East, partly due to their established technology ecosystems and the concentration of AI companies.
AI investment is key to overcoming the digital skills gap
A few years ago, we said to our younger people, “Did you know that in the future, you’re likely to be recruited into a job that doesn’t even exist yet?’ The point wasn’t intended to be profound; it was more around the need to be adaptable, resilient and ready to learn new skills, alongside a recognition that technology is evolving at an unpredictable rate. Now, the phrase feels blindingly obvious as we see roles for AI engineers, prompters, AI data and AI security analysts appearing on vacancies boards. The roles are in-demand – and some of the hardest to fill – but while upskilling and reskilling would help to fill these specific vacancies, the investment in AI must address the broader digital skills shortage and, crucially, seek to overcome digital exclusion.
Solving the UK’s digital skills gap to remove barriers to AI progress involves a collective set of aligned strategies, including:
- Access to affordable technology and connectivity
- Enhanced training in schools and colleges
- Workplace training and investment in public and private sector collaboration such as apprenticeships
- Community programmes supporting and educating marginalised groups disadvantaged by digital exclusion
- Government policies
The Plan sets out initiatives including the above, alongside partnerships with educational institutions to integrate AI and digital skills into the curriculum; targeted training and support for workers from Skills England; and a framework to attract talent into the UK by creating a thriving environment for AI innovation.
Investing in, and prioritising, AI is not merely about staying competitive in a global race, it is about redefining the UK’s economic future, driving innovation and delivering tangible benefits for businesses, citizens and society as a whole. We are on the cusp of a remarkable opportunity, and we must make it work for the greater good. By strategically investing in AI and leveraging its capabilities, the UK can make significant strides in closing the digital skills gap to ensure that everyone has the opportunity to succeed in the AI economy.
