Digital skills gap stalls AI progress for UK industrial firms
New research has found that almost half of UK industrial midmarket firms report a lack of digital skills as a key factor holding back their business growth. The survey results indicate specific shortages in artificial intelligence (AI) literacy, cybersecurity, and data analysis, with mounting evidence that many companies are struggling to implement effective digital transformation strategies.
Growth restrictions
The research, commissioned by software provider Forterro, surveyed senior decision makers within manufacturing and wholesale companies across the UK. It found that 49% of British participants blame a digital skills gap for directly impacting business growth or holding up projects. Recruitment remains a challenge for this sector, with 34% of respondents expressing low confidence in finding candidates with necessary digital expertise.
Skills gaps
The most urgent skills shortages identified were in AI, with 42% of companies highlighting a lack of AI literacy among their workforce. Cybersecurity skills were lacking in 41% of firms and data analysis in 40%. These abilities are viewed as critical for businesses to achieve digital transformation goals and stay competitive.
Thomas Knorr, Vice President Cloud Transformation at Forterro, said,
"The digital skills gap is becoming the single biggest barrier to digital transformation in the UK's industrial midmarket. Most firms recognise the potential of AI and automation for efficiency gains and growth, but many don't have the people or infrastructure to make it work. The risk is a growing divide between businesses that modernise and those left behind."
Transformation progress
Despite digital strategies featuring prominently in business plans-57% of UK companies report having a transformation roadmap and 56% a cloud and data strategy-progress remains limited. Three in ten rated their own digital transformation over the last three years as poor, while an additional 34% considered it only adequate. The UK trails some European nations, according to the research, despite remaining slightly ahead of the continental average in digital planning.
AI adoption
Many of the surveyed companies see AI technologies as a pathway to improved operational efficiency. The firms listed predictive maintenance, predictive logistics and automated document management as the most sought-after enterprise resource planning (ERP) add-ons. Additionally, AI-powered analytics and risk detection are expected to provide robust future value.
On the topic of workplace automation, Knorr commented, "AI isn't about replacing people and taking jobs, it's about empowering those people to do their jobs better and allowing them to shape their role in a way that brings greater rewards." Knorr added, "When the right digital skills and technology are harnessed together, AI becomes a practical tool for improving operations, predicting issues, strengthening competitiveness and powering growth. That's what we're helping our customers achieve, offering tools that offer tangible and practical benefits."
Competitive drivers
The need to keep pace with competitors and future-proof operations is driving digital transformation, with a third of companies citing these as primary motivators. A significant 57% of participants said that resisting the adoption of cloud technology would result in loss of market share-showing that the sector understands the risks of inaction yet faces obstacles in implementation.
Knorr concluded, "Digitalisation is no longer a project for tomorrow; it's the price of staying relevant. AI, cloud and ERP modernisation go hand-in-hand, but without retraining or upskilling in the business, digital transformation will continue to stall."
