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Closing the AI Skills Gap
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“Any focus on AI literacy must be modular and flexible across regions and sectors to match the pace of deployment.”
“AI adoption is accelerating, but cutting the skills gap will decide who benefits.”
Kir Nuthi Head of AI and Data Policy, techUK
Patrick Milnes Head of Policy, British Chambers of Commerce
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Teachers reveal whether AI actually reduces their workload Three years ago, AI was still an experiment in many UK schools. Today, it has become part of the working week. So, why aren’t teachers working fewer hours?
F WRITTEN BY Duncan Verry Portfolio Director, Bett
or the third consecutive year, Bett has asked UK teachers how they are using AI, how they feel about it and what impact it is having on their working lives. With three years of research now to draw on, we can see something more revealing than a snapshot: how teachers’ relationship with AI is changing.
Among teachers using AI, 51% say it has eased their workload. Yet, only 35% say they actually work fewer hours. More than half continue to work the same hours as before. In other words, AI may be making individual tasks quicker, but it hasn’t necessarily made the working week shorter. That distinction matters.
AI eases tasks, not workload Bett’s latest report, AI in Education 2026: Working it out, based on research conducted by YouGov among 1,033 UK teachers, reveals that eight in 10 now use AI for teaching-related tasks, while weekly use has doubled in just 12 months. Yet, as adoption has accelerated, expectations appear to be becoming more measured.
AI enthusiasm and support decline As schools, policymakers and technology providers explore AI’s potential to tackle workload, Bett’s research suggests the conversation needs to move beyond simply asking whether teachers are using the technology. We need to ask what meaningful impact it is having once it reaches the classroom.
There are signs that teachers are asking the same questions. Fewer than half now expect to increase their use of AI over the next year, falling from 68% in 2025 to 47% in 2026. Meanwhile, 41% have received no AI training from their school, and almost half say their school has no written policy governing staff use. The challenge facing pupils Most secondary teachers believe AI has made it easier for students to cheat without being caught, while 57% suspected at least one pupil of submitting unauthorised AI-assisted work in the previous four weeks. The picture emerging isn’t one of teachers rejecting AI. Far from it; it’s one of a profession becoming more pragmatic about what the technology can and cannot do. Three years into Bett’s research, the question is shifting from ‘Will teachers use AI?’ to something far more important: ‘How do we make its use genuinely worthwhile?’ Explore the findings, challenges and opportunities shaping the next chapter of AI in education in Bett’s new AI in Education 2026: Working it out report.
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Successful AI adoption needs more than just technical talent As organisations move from experimenting with AI to deploying it at scale, success will depend on how well people work with — and oversee — the technology. WRITTEN BY Tony Greenway
Paid for by Capita PLC
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he AI skills gap (the mismatch between rapid artificial intelligence adoption in the workplace and workforce readiness) is usually talked about in terms of technical talent. At AI-enabled business services partner, Capita PLC, tech ability is just one part of the equation. “For us, the best value is a combination of AI literacy and process skill,” explains Adolfo Hernandez, Group CEO. “After the experimentation phase comes deployment — for that, we need deep understanding of a customer’s processes.” This knowledge allows AI to be successfully integrated into real workflows. Process-first approach beats tech-first Hernandez cites the work the company does with Transport for London (TfL). “Our team understands every element of the process of road user charging, from cameras, image recognition and
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edge inference all the way down to the call centre and payments, exclusions and validation,” he says. “We look at each specific process and the capabilities we can inject to make delivery of that process easier. AI is one more ingredient in the delivery mix.” Ultimately, working in this ‘process down’ way, rather than a ‘technology up’ way, makes AI adoption more organic and effective. It’s not bolted on as a meaningless afterthought. Translating AI experiments into sustained operational value Hernandez has advice for any organisation struggling to translate its AI experiments into sustained operational value. “Get your workforce strategy right,” he says. “Enable your staff with skills training so they are curious about the technology, not fearful of it.” Alongside technical know-how, they will need to challenge AI outputs,
manage exceptions, redesign processes and remain accountable for outcomes. This is particularly important as systems are given greater autonomy with agentic AI. Also, figure out which parts of a process will be AI-driven, which parts will be human-driven and which parts will be hybrid. Of course, while organisations will want staff to experiment with AI tools, it’s critical to have the right guardrails in place. This is why Capita has deployed a control plane called Agent Fabric across all its operations for total human oversight, control and audit of its hundreds of AI agents. Finally, AI deployment must be driven from the top, or it runs the risk of being seen as just another tech initiative. With thoughtful and safe adoption, AI can be transformational. “It gives us the tools to reshape the future of the company and reimagine the art of service provision,” concludes Hernandez.
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Adolfo Hernandez Group CEO, Capita PLC
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Everyone has an AI strategy — few have an AI delivery strategy AI has moved from possibility to delivery, but many firms lack the skills, structures and accountability to scale. Success will depend less on technology than on sourcing the right people to implement it.
A WRITTEN BY Aminash Patel CEO, Penta Consulting
I has become the defining boardroom conversation of our time. Across every sector, organisations are publishing roadmaps, launching pilots and exploring how intelligent technologies can transform productivity, customer experience and decision-making. Why AI requires delivery over vision AI is firmly embedded in corporate growth plans. Yet, as enthusiasm accelerates, a different reality is emerging. Many organisations have developed an AI strategy. Far fewer have established the practicalities of how they will (and who will) deliver that strategy. The distinction matters. Strategy defines where a business wants to go. Delivery determines whether it gets there. Since the founding of Penta Consulting in 1998, technology transformation has moved from the Millennium Bug scare to cloud adoption, cybersecurity, digital operating models and now, the AI revolution. Through each emphasis shift, one pattern has remained consistent: technology changes quickly, but successful delivery depends on people with the right skills and experience. Why pilots succeed, but scaling fails Unlike traditional software projects, AI isn’t something businesses can buy, install and switch on. Successful adoption requires specialist skills, scalable operating models and significant organisational change. The technology itself is only part of the equation. People remain the force that turns ambition into impact. This is where many businesses encounter their biggest obstacle. Early results are promising. A pilot improves
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efficiency within a department. An automation initiative reduces manual processes. A proof of concept demonstrates clear business value. The challenge comes when organisations attempt to scale those successes across an enterprise. Projects that work well in controlled environments frequently struggle to expand across multiple business units, geographies and regulatory frameworks. What appears straightforward during the strategy phase often becomes much more complex during execution.
AI requires a combination of expertise that rarely exists within a single team and is the biggest skills gap in most organisations today. Access to talent As a result, many organisations face a widening gap between AI ambition and delivery capability. One of the most significant barriers is access to talent. AI requires a combination of expertise that rarely exists within a single team and is the biggest skills gap in most organisations today. Data engineers, AI specialists, cloud architects, cybersecurity specialists and governance experts all have a role to play. Securing the right mix of skills at the right time remains a challenge. Delivery models present another challenge Many organisations continue to manage AI programmes through
fragmented networks of technology providers, implementation partners and internal teams. Responsibility is dispersed across multiple stakeholders, making accountability harder to maintain. As programmes grow, so does the risk of delays, inefficiencies and disconnected outcomes. Global organisations face additional complexity. Different regulatory environments, labour markets and data requirements can significantly influence adoption. Scaling AI internationally requires delivery structures capable of balancing global consistency with local realities. The organisations generating the greatest value from AI today share a common characteristic. They are not necessarily investing the most, nor are they always first to adopt new technologies. Instead, they recognise that AI is as much a people and delivery challenge as it is a technology challenge. They invest not only in platforms and tools, but in the foundations of successful execution: specialist expertise, accountable delivery structures and scalable operating models. They understand that competitive advantage comes not from access to AI alone, but from having the people and capability to implement it effectively and make sound strategic decisions consistently. People, not plans, can ensure success That distinction between AI strategy and delivery may prove to be the difference between organisations that unlock its full potential and those that remain trapped in a cycle of pilots, proofs of concept and unrealised ambition. We believe that success will not be defined by who has the boldest vision but by who has the people to execute it.
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Human oversight of AI is ‘not optional’ for small businesses A small business owner reveals how she used AI to develop her operations, become more efficient and build financial confidence — but always with oversight from human experts.
WRITTEN BY Tony Greenway
Paid for by Xero
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f you’re a small business owner who has never used AI before, there are some myths and misconceptions to be aware of. For example, while it’s true that non-technical skills are crucial — such as understanding AI risk and questioning its outputs — you don’t have to be an AI expert to feel the benefits. Only using the right tools at the right time You may also think that AI can unfailingly optimise every area of your business. That’s not just wrong, warns Stuart Miller, Director of Public Policy and Tech Research at Xero. It can be risky. “We see in the
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Stuart Miller Director of Public Policy and Tech Research, Xero
cash flow and chasing late payments. Then, as Amazelab grew, VAT submissions became so timeconsuming that she had to block full calendar days for manual invoice reviews.
media all the time that AI is going to be able to do X, Y and Z, and that any business that isn’t using it is some kind of outlier,” he says. “Actually, business owners should only be using AI for the right job at the right time.” That’s the approach adopted by Leonie Briggs, owner of Barnsleybased Amazelab and Xero user, which creates and runs STEAM (science, technology, engineering, the arts and maths) educational programmes and workshops for schools, museums and charities. After Briggs co-founded the business with her husband, David, in 2020, she experienced a key operational challenge: navigating
Utilising the knowledge and experience of accountants and bookkeepers After recommendations from enterprise support programme Launchpad Barnsley, Briggs decided to hire an accountant to ensure financial accuracy. She also integrated Xero via her accountant to help streamline the process.
Leonie Briggs Founder and Company Director, Amazelab
Business owners should only be using AI for the right job at the right time.
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You always need to work with an expert on areas like tax and finances to look over everything and provide overall strategy and advice based on your individual business. The results were remarkable: data processing and bookkeeping workflows created behind-the-scenes efficiency gains, and VAT submissions have been made much easier. “The time that it used to take compared to now is unbelievable,” reveals Briggs. However, she stresses that the company’s financial data and AI-processed submissions always go through her qualified accountant for thorough review, and they work in partnership on the process. After all, the knowledge and experience of professional accountants and bookkeepers act as a firewall in case there are any errors. Miller agrees with Briggs that human oversight is not optional and remembers a recent conversation he had with a small business owner. “She asked me: ‘If I use an AI assistant to complete my tax and it gets it wrong, who is liable for that error?’,” he says. “My answer was: ‘Unfortunately, you are. Because you are the person signing and completing your tax return and therefore responsible for making sure all AI outputs are accurate.’ You always need to work with an expert on areas like tax and finances to look over everything and provide overall strategy and advice based on your individual business.” Honest learnings for businesses about taking the first steps At Amazelab, Briggs has other uses for AI, including tender writing and bid applications, reducing a two-week process to half a day. Nevertheless, she admits there are areas of the business that are — and will remain — untouched by the technology. For instance, Briggs deliberately avoids AI when curriculum mapping and workshop design. “I love the challenge of doing that (myself),” she notes. “I love looking at the national curriculum and hearing about the young people and seeing how we can make that fun, engaging; it’s a very human side to it.” Briggs’ experiences with AI could inform other small business owners exploring the technology. To begin with, she advises prioritising AI education and suggests firms seek out accessible, flexible and funded AI training courses, such as those run by Small Business Britain. “Don’t assume you need to adopt everything immediately,” she says. She also advocates building a culture where continuous learning is expected and valued. Talk to local business support organisations to see if they can provide mentorship, funding programmes and guidance on pricing, policies and regulations. Keep humans in the loop at all times Plus, remember that AI is only as good as the information it uses, so data accuracy is vital. Get a handle on where the technology can be trusted and where outputs need to be questioned. Always use tools such as chatbots and AI translations carefully — and only after verification from customers. Of course, make accountability and privacy your watchwords. At Amazelab, all digital systems require multi-factor authentication using facial or fingerprint recognition, while data protection training takes place annually. Briggs’ main advice is: always make sure a human is in control. “As long as you have everything checked, AI is a really good start to build people’s confidence in growing their business,” she says. “Moving on to the experts and actually utilising them as you’re scaling and starting to grow is really important. Always seek that professional opinion.”
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Small businesses can’t afford ‘blind trust’ when using AI AI promises to create insight and capacity for small business owners. But without the right skills and leaning on experts to help, it can have risks.
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hen a small business uses artificial intelligence in a thoughtful, safe and well-managed way, the results can be game-changing. “There’s no doubt that it offers strong efficiency gains,” says Stuart Miller, Director of Public Policy and Tech Research at Xero, the small business platform. “By reducing manual, repetitive, low-value tasks, AI can save a business valuable time that can be reinvested back into the most important things.” That’s particularly true when it comes to managing finances, which are often the heaviest part of a small business’s workload. AI’s promise and peril for small businesses According to research from Xero, two in five small business owners (38%) cannot say whether their business was profitable in the previous month.1 However, AI and digital tools can help them get on top of their numbers and work more efficiently with their accountant or bookkeeper. “Let’s face it,” admits Miller. “No owner started their business because they love bookkeeping, tax, payroll or spreadsheets. That’s not what they want to do. But there are tools that help streamline things like uploading receipts and coding expenses in seconds, or that automate chasing payments.” Among small firms, the excitement about AI is certainly real. According to Thryv, one third of small businesses save 11 to 20 employee hours per month using AI;2 while Salesforce research notes that 91% of small and medium businesses using AI say it boosts revenue.3 Yet, the risks of AI are real, too. The technology is not infallible, so what happens if it produces inaccurate outputs? That might not just be a potential inconvenience for a small business; it could have stronger repercussions. No wonder small business owners are currently being pulled in two different directions. A blend of tools and working with experts However, this accountability gap can be closed using a blend of AI-enabled tools in close collaboration with experts, such as accountants and bookkeepers. Having a human in control at all times is crucial, stresses
Miller. “We never suggest businesses blindly trust AI,” he says. “As good as it is, it’s not always 100% accurate.” To ensure the right guardrails are in place, Miller recommends that small business owners create their own AI governance policy when using AI in any part of their business. They should also appoint a member of staff to regularly review the tools that are being used — and understand which employees are using them. “Check which models are subscription-only and which are non-subscription,” says Miller. “And when you sign up for something, always review the terms and conditions so that you know where your data is going and how it is being used.” If you lack confidence when using AI tools, seek out proper training and advice from those with true AI experience. This might be your accountant or bookkeeper, but Miller also suggests investigating available AI skills support from local business networking groups and local Chambers of Commerce. “We recently ran a workshop in Barnsley with eBay and BT, helping local businesses build their AI skills. It’s always worth looking out for local events like these to connect and learn from your peers too.” Used wisely, AI can help small businesses thrive in the digital age. “That is so important,” he says. “Because these firms are a vital part of the UK economy.”
Stuart Miller Director of Public Policy and Tech Research, Xero
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References 1 Xero report, 2025. Unlock your numbers: Empowering financial confidence for small business growth. tinyurl.com/62kmjtdp. 2 Business Wire, 2025. New survey data from Thryv finds 51% of small businesses expect to use AI by end of 2025. tinyurl.com/bd4saszj. 3 Salesforce, 2024. New research reveals SMBs with AI adoption see stronger revenue growth. tinyurl.com/5rjm395u.
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AI-native talent requires AInative adoption Different industries require different digital and AI skills. Therefore, the AI readiness gap needs nuance across the UK.
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overnment research found that 43% of information and communication firms have adopted AI, compared to 88% of construction businesses neither having used AI nor having plans to adopt it. Yet, in engineering and manufacturing, under 0.2% of job adverts last year referenced AI meaningfully. Same technology, three different sectors, three different baselines for adoption and for whether the skills exist to diffuse it. Adoption teaches through experimentation For many workers, their first experiences with AI would have counted as ‘shadow use’ (experimenting on personal accounts) or through the AI-enabled updates of tools they previously used. From the office suite to task management applications and customer databases, those tools are already upgraded by AI and tailored to the sectors that adopt them. What workers need to upskill on is often dependent on the sector’s needs and tools. Any focus on AI literacy must be modular and flexible across regions and sectors to match the pace of deployment. Sector and region, not either/or Because adoption varies by industry and place, a purely regional or sectoral approach to AI literacy only does half the job. The story is often of advanced manufacturing in Manchester, biotechnology in Cambridge and the creative economy in Edinburgh. Programmes in those places need local specialisms in mind. Moreover, skills are only one building block, sitting alongside data access, investment, infrastructure and proinnovation regulation. This is why techUK treats literacy as an adoption variable. Better utilisation of existing tech resources TechUK is proud to join the Government and industry-led AI Skills Partnership, which has ambitions to provide 10 million workers with key AI skills by 2030, equivalent to almost one third of the UK workforce. Businesses already offer a variety of online and in-person training, from basic digital skills to courses on the latest technological developments. We want to ensure everyone has the skills needed to use AI confidently and responsibly, and there’s much more we can do together.
WRITTEN BY Kir Nuthi Head of AI and Data Policy, techUK
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UK SMEs need upskilling to use available AI at an expert level AI adoption is rising quickly among UK SMEs. However, its impact will ultimately depend on whether firms can access the skills and advice to use it well.
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esearch from the British Chambers of Commerce (BCC) in March shows 54% of firms now use AI, up from 35% in 2025 and 25% in 2024. Adoption is moving fast. Skills must move at the same pace, if not faster. AI is only as valuable as the people using it. Without the confidence and skills to embrace it, the divide between businesses leading the AI revolution and those left behind will widen. SMEs need practical support Businesses see the opportunity. AI can save time, cut admin, improve processes and support growth. Many smaller firms need help that reflects their specific size and sector. Generic advice is unlikely to be enough. The skills gap is not just about using AI tools. Our research shows deeper AI adoption is changing roles and skills demands. If support does not keep pace, technology may widen productivity gaps rather than close them. For some firms, this will mean retraining staff. For others, it will mean redesigning roles so that people and technology work together more effectively. Either way, skills support must be practical, accessible and linked to real business needs. Policy must focus on delivery Closing the AI skills gap should be a national priority but delivered locally. Support must reach firms in every region and not only those already ahead. For the BCC, that means AI champions for SMEs, Growth and Skills Levy funding for AI literacy and job-specific training, alongside local skills improvement plans shaped by business demand. Government should work with the Chamber Network to make digital adoption support easier to access. Chambers understand local economies and can connect firms to trusted help. AI adoption is accelerating, but cutting the skills gap will decide who benefits. With the right support, firms can turn a productivity promise into wider economic growth.
WRITTEN BY Patrick Milnes Head of Policy, British Chambers of Commerce
Small businesses adopt AI to manage growing workloads Small and micro business owners, founders and directors are enthusiastic about adopting AI, but not all use it yet or to their best advantage.
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mall, micro and single person businesses are adopting AI quickly but unevenly. Their use varies from experimentation to full operational integration. Some latest figures are from 2025 and out of date: • 14% of micro businesses use AI (DSIT) • 9–14% of micros use generative AI (Helium42) • 21% of micro/small firms use AI regularly when embedded tools count (Shotgun) • 6% of micro/small firms have AI embedded into daily work (Shotgun) • 54% overall use AI (BCC/Atos) but only 11% use it extensively (Shotgun) It’s hard to measure AI adoption accurately. If you count embedded AI in Microsoft 365 or accounting software, it’s much higher than if you measure deliberate, intensive use. Many business owners don’t realise the tools they’re using are AI-driven. Where AI can help smaller firms AI is being used for everyday tasks like marketing (72%); admin (72%); customer service including chatbots and auto-responses (45%); analytics and reporting (46%); finance (29%); and sales and lead generation. Sole traders and one director companies use AI for content creation, cutting admin time and communicating with customers. AI is an “extra pair of hands.” The benefits are obvious once you’re using AI: productivity gains (75–87%), time savings, better marketing, lower costs and faster decisionmaking. So far, only 4% of AI using businesses report reduced headcount (ONS, 2025). For micro firms, AI supplements labour rather than replacing it. However, given rising wages, NICs, rates and bills, it’s tough for young people to find jobs. That problem may grow as AI is applied to more tasks. Barriers to adoption There are barriers, though; some business owners can’t find or afford the skills they need and don’t know which tools to invest in. Non-adopters worry about data security and return on investment. Only 12% of adopters report increased revenue so far. Small and micro businesses are using AI, and it’s becoming an essential tool helping founders manage increasing workloads. As the pace of adoption increases, it will become crucial to businesses determined to stay ahead of the competition too. WRITTEN BY Liz Barclay Lead on Small and Micro Businesses and Entrepreneurship, Institute of Directors
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