72% of UK firms turn to AI, upskilling amid £275M productivity loss

72 per cent of companies are lacking the necessary talent in key areas like AI, data analytics, and cybersecurity – up from 69 per cent in 2023, according to a new report from Docusign’s Digital Maturity Report 2024.

Businesses are increasingly focusing on ‘quiet hiring,’ upskilling their current workforce, and leveraging AI tools such as ChatGPT to address the shortage without expanding headcount. The number of companies using AI to fill skills gaps has risen by 42 per cent in 2024.

Despite increased investment in digital transformation, UK companies are still struggling to improve productivity. Workers are wasting an average of two days a week on manual, low-value tasks, costing businesses over £275 million in lost productivity each year. This inefficiency is also causing dissatisfaction among employees, with 41 per cent considering leaving their roles due to outdated processes.

However, while 35 per cent of companies plan to invest more in AI over the next year, only 43 per cent feel fully prepared to implement it, with concerns around security and data protection still holding many back.

Despite these challenges, boosting efficiency through AI and digital tools remains a top priority as companies look to close the gap between their technology investments and productivity outcomes.

Sheila Flavell, COO Of FDM Group commented:

It’s crucial for companies to provide high-impact skills training to help their staff keep pace with evolving technology. Upskilling in AI, data analytics, and security ensures they have the talent needed to drive digital transformation. To effectively upskill workers in these areas, businesses must prioritise experiential learning, giving employees the hands-on experience necessary to apply new technologies. This approach not only boosts productivity but also reduces the reliance on ‘quiet hiring’ and helps retain top talent by offering real opportunities for growth.

Sheila Flavell, COO Of FDM Group

Tips to help close the skills gap

  1. Embrace continuous learning: Invest in a culture of learning where employees have regular opportunities to upskill. Partner with training providers or develop internal learning programmes that focus on high-demand areas like AI, data analytics, and cybersecurity.
  2. Use AI as a tool, not a replacement: AI can augment human capabilities, but it’s essential to create a balance between automation and the human touch. Provide staff with the skills and understanding to work alongside AI tools effectively, making technology an enabler, not a barrier.
  3. Prioritise employee experience: Outdated systems and processes can cause frustration and disengagement among employees. Invest in improving the digital workplace experience and ensure that AI and automation efforts genuinely reduce low-value tasks to improve employee satisfaction.
Joanne Swann, Content Manager, WorkWellPro
Editor at Workplace Wellbeing Professional | Website |  + posts

Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.

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