Skill gaps & AI resistance threaten UK workforce readiness

Skills shortages have emerged as a pressing concern for organisations according to new global research from Skillsoft.

The 2025 Global Skills Intelligence Survey released by Skillsoft presents evidence that enterprises are grappling with widening skills gaps, with only a minority expressing confidence in their workforce's ability to meet business objectives over the coming years. The survey, involving 1,000 HR and learning and development professionals from the United States, United Kingdom, Germany and Australia, highlights challenges associated with business transformation, particularly in relation to technology and AI skills.

Low confidence

Among those surveyed, just 10% reported being fully confident that their employees possess the necessary skills to meet business goals within the next 12 to 24 months. The data points to AI skills, leadership capabilities, and technology expertise as the most significant skill shortages currently facing organisations.

Nearly a third (28%) identified skills as a key factor influencing their organisation's capacity for growth. Nevertheless, a gap remains between recognising the issue and effectively addressing it. According to the research, 85% of respondents have some form of talent development system, but only 6% consider these programmes "outstanding", and just 20% believe their talent strategies align with overall organisational goals.

Workforce readiness in the UK

In the United Kingdom, AI skills were highlighted as the most significant gap, identified by 30% of respondents, outpacing both leadership and people management (26%) and technical skills (18%). The survey also found that the exaggeration of skill levels by UK employees is contributing to the problem: 20% of talent reportedly overstate their technical skills, 19% their AI proficiency, and 19% their leadership and people management abilities.

These exaggerations are not without consequences, with UK businesses reporting exacerbation of skill gaps (39%), reduced team cohesion (36%) and increased manager stress (33%) as direct impacts.

Obstacles to transformation

While most organisations acknowledge the need for transformation in an era defined by artificial intelligence, many face persistent barriers to progress. Challenges identified by survey participants include employee engagement issues (cited by 33%), a tendency to focus on the present at the expense of long-term planning (27%), and the promotion of staff without adequate preparation (26%).

Concerns about the future of work were also prevalent. Some 37% fear losing top talent to more agile competitors, 33% cite burnout as an obstacle to transformation efforts, and nearly a quarter (24%) are worried that advances in AI are outpacing workforce upskilling initiatives.

AI adoption and workforce resistance

Adoption of AI is also met with significant resistance in many workplaces. According to the survey, 41% of respondents said their workforce is resistant to change, while 28% pointed to a need for improved technical expertise. These hurdles are in addition to the operational limitations stemming from fragmented, manual, and poorly customised talent development solutions.

"Business transformation depends on the strength, adaptability, and skills of the workforce," said Ciara Harrington, Chief People Officer, Skillsoft. "These findings should be a wake-up call for every leader. Skills gaps are already impeding growth, and traditional approaches to talent development are only worsening the issue. To compete in today's human-AI world, organisations must place skills at the centre of their strategy and evolve toward integrated platforms that connect learning, skills intelligence, and performance in a single place, unlocking a workforce ready for change and innovation."

Measurement and AI solutions

The study revealed that just 18% of organisations are using regular skills assessments to measure the impact of talent development programmes. The majority rely on less systematic approaches, potentially contributing to persistent gaps and a lack of actionable insights regarding workforce capabilities.

Nearly half (49%) of respondents believe AI could offer improvements in skills intelligence, particularly in providing more accurate and actionable analyses of where gaps exist.

Evolving talent development

Traditional learning experiences remain prevalent, with online video-based training (58%), group training (57%), mentorships (50%), and live instructor-led courses (50%) widely offered. However, there is growing interest in AI-powered enhancements, including adaptive training (43%), real-time feedback (42%), interactive simulations (38%), and personalised learning paths (33%).

These findings support the trend that organisations are seeking ways to connect skills data to broader business strategies and outcomes, recognising that understanding - and acting on - strengths and gaps is essential for future success in a dynamic market environment.