UK firms face skills shortages stalling AI & tech growth

UK businesses are facing mounting obstacles to growth as talent shortages in vital technology sectors continue to disrupt enterprise ambitions.

According to Expereo's 2025 Enterprise Horizons report, networking, cybersecurity, and data or AI are the most severely affected domains regarding the recruitment and retention of skilled personnel. The study found that 40% of UK organisations are struggling to fill networking roles, while 44% experience similar issues in cybersecurity and 33% face shortages in data, AI, and automation.

The lack of qualified talent in these areas is not only slowing down the adoption of artificial intelligence but is also causing businesses to rethink their strategies on leadership, workforce development, and external partnerships. Figures from the report indicate that these shortages have not seen notable improvement since 2024, demonstrating a persistent challenge for the sector.

External support

To address the ongoing skills gap, many organisations are turning to outside partners for assistance. The report found that 40% of UK businesses plan to increase their reliance on external vendors to manage and bridge their networking skills gap, with 38% considering the same approach for cybersecurity skills. This marks a shift away from traditional reliance on internal recruitment and training alone.

However, companies are not abandoning internal strategies. Many are investing concurrently in employee upskilling, cross-training, and the cultivation of human skills such as collaboration and creativity. These internal efforts are seen as essential complements to external support in navigating the challenges posed by rapid technological change.

AI's impact on leadership

The critical need to harness the power of AI is also altering the dynamic between technology teams and senior leadership. According to the report, one in three UK technology leaders (33%) say their Chief Executive Officer is now working more closely with the Chief Information Officer than was the case a year earlier. This increased collaboration is attributed to the pressure to deliver on AI-led transformation projects. In addition, 76% of UK technology leaders say the increased focus on AI has raised their personal profile at the board level.

Despite forecasts anticipating a shift in responsibility from the CIO to a new Chief AI Officer (CAIO), this role has yet to be widely adopted. The report notes that 87% of UK businesses have not appointed a CAIO, suggesting the CIO will remain central to AI initiatives, at least for the immediate future.

Stagnant adoption rates

The continuing shortages in networking, cybersecurity, and data or AI are impacting the pace of technology adoption. The report highlights that the proportion of UK organisations experiencing difficulties in finding or retaining talent in these domains remains almost unchanged from last year. Such shortages have tangible consequences, contributing to delays in digital transformation projects and, in particular, hampering efforts to fully integrate AI into business operations.

Technology leaders are being asked to do more than ever, including driving AI strategy and managing infrastructure – all while navigating critical skills gaps. What's encouraging is that many enterprises are responding proactively: strengthening vendor partnerships, rethinking leadership structures and investing in talent to stay ahead. To meet their growth ambitions and fully realise the potential of AI, businesses must continue to empower their technology leaders with the resources and support they need to succeed.

These observations were made by Ben Elms, Chief Executive Officer of Expereo, who underscores both the scale of the challenge and the steps enterprises are currently taking to address it.

Global responses

The report outlines that the talent shortage crisis extends beyond the UK, representing a global issue with similar trends apparent in other major markets. Worldwide, 40% of businesses say they are considering external partnerships to overcome the networking skills gap, reflecting a shared struggle to keep up with digital and AI-led transformation.

As both internal and external strategies are pursued, organisations are expected to continue reviewing their leadership models and investment priorities in a bid to overcome persistent talent shortages and unlock the full potential of emerging technologies.