Boosting AI Productivity

A new report published today has revealed that skills shortages remain one of the biggest barriers to effective artificial intelligence adoption in UK workplaces, despite growing use of the technology across the economy.

The report, developed by Dr Nisreen Ameen of Royal Holloway, University of London, in partnership with Skills England, highlights practical approaches that are helping organisations move beyond AI experimentation and achieve meaningful productivity gains.

The findings come as Skills England launches a range of new tools and resources designed to help employers build the AI capabilities their workforce needs. The initiative builds on recent government-backed measures including a new AI and automation practitioner apprenticeship, flexible AI leadership apprenticeship units and free short AI courses available to adults across the UK.

According to the report, while around 44% of workplaces now use AI every day, adoption remains uneven and is often limited in its impact due to workforce skills gaps and a lack of structured training.

The report, titled Skills for AI: What Works for AI Upskilling in the UK (SKAI), draws on insights from more than 150 employers. It aims to provide practical, evidence-based guidance to help organisations progress from initial experimentation to effective, scalable AI deployment across their workforce.

Central to the programme is the PRIMES framework, which identifies six principles for successful AI training: Practical, Reachable, Integrated, Modular, Expandable and Sustainable.

The report is accompanied by an employer guide, new analysis and a series of case studies showcasing successful AI adoption across a diverse range of sectors.

The findings complement Skills England’s wider efforts to strengthen the nation’s AI capabilities. These include the Level 4 AI and automation practitioner apprenticeship, designed to support practical workplace application, and new flexible apprenticeship units focused on AI leadership and strategy.

In addition, Skills England has introduced digital badges awarded through the AI Skills Boost programme. Developed in partnership with technology employers and the Department for Science, Innovation and Technology, the initiative offers free, high-quality short courses to adults throughout the UK.

Baroness Jacqui Smith, Minister for Skills, said:

“The UK has a proud history of embracing new technologies and this government is committed to ensuring the benefits of AI are felt right across the country. AI has the potential to transform our economy, boost productivity and create real opportunities for workers and businesses, but only if we have a workforce equipped to use it effectively. The tools launched today, alongside our AI apprenticeships, free short courses and Youth Guarantee, will give employers exactly what they need to make that happen.”

Phil Smith, Chair of Skills England, said the report demonstrates that technology alone is not enough to unlock AI’s full value.

“AI is already transforming how businesses operate – but too many are still struggling to unlock its full potential. This report shows successful adoption depends not just on technology, but on people having the right skills, confidence and support. Through the SKAI programme and the PRIMES framework, we’re giving employers clear, practical guidance to upskill their workforce and maximise AI productivity gains in a responsible way. When you consider this alongside our growing AI skills offer, I’m proud of the progress that’s being made.”

The SKAI programme builds on a suite of free tools released by Skills England and Dr Ameen last year. These include the AI Skills Framework, which identifies technical, responsible and non-technical AI skills required across different job roles and competency levels.

Additional resources include the AI Skills Adoption Pathway Model, which helps organisations understand the stages of AI implementation, from early awareness through to strategic scaling, and the Employer AI Adoption Checklist, which supports employers in assessing readiness and identifying workforce development needs.

The report also features case studies from organisations including LinkedIn, Airbus, Roche, KPMG, Vertis Media, Congregation, the NHS, Good Things Foundation, Cast Consultancy and 100 School.

Dr Nisreen Ameen said:

“It’s important to explain how organisations are moving from informal early use to well-structured AI capability. These case studies cover everything from role-based learning pathways and peer and community-led support to inclusive approaches that build confidence among non-technical and digitally excluded learners. They’re a key part of our work to show what successful use of AI really looks like.”

Employers contributing to the report highlighted the importance of structured learning, cultural change and responsible implementation.

James Lee, Head of Public Policy and Economic Graph, UK, LinkedIn, said:

“AI’s economic potential will depend not just on innovation, but on how widely it is adopted across firms and workers. Our experience shows that structured, role-based learning frameworks can help organisations move from experimentation to deployment, building the capability needed to support workforce adaptability and long-term growth.”

Ian Barnwell, Chief Learning Officer & Co-Lead, KPMG Powered Enterprise for Government and Public Sector KPMG in the UK, added:

“KPMG is proud to support this report, bringing insights that help bridge skills gaps and create meaningful opportunities. We share Skills England’s ambition to deliver better skills for better jobs and believe AI can play an important role in helping organisations build the capabilities needed for a more resilient workforce and sustainable economic growth.”

Several contributors stressed that AI should be viewed as a tool for enhancing human capabilities rather than replacing workers.

Laura Cioffi, Co-Founder of Vertis Media, said:

“AI hasn’t replaced our team; it has elevated us. We built our capability entirely in-house, sharing tools, experiments, and failures every week. That shift from repetitive execution to high-value strategy gave Vertis Media the confidence to move into new, specialised markets.”

Mary Booth, Digital Services Manager and Trustee for digital inclusion charity Good Things Foundation, said:

“We believe AI shouldn’t be a barrier. By replacing tech jargon with simple, everyday explanations, we’re helping people build the confidence they need to ensure no one gets left behind.”

Healthcare organisations also highlighted the potential benefits of responsible AI adoption.

Dr Lavan Baskaran, NHS/Private Senior GP Partner with Special Interest in Sleep & Cardio-Metabolic Medicine, said:

“The real opportunity for AI in primary care is not replacing clinicians, but supporting them to spend more time focused on patients and less time managing documentation and administrative processes.”

The report concludes that successful AI adoption depends on creating workforce-wide capability rather than relying on technical specialists alone.

As Vijay Reddi, Analytical Data Science TA lead Ophthalmology and Neurology at Roche, noted:

“The true power of AI is unlocked when it becomes a shared capability, not just a specialist’s domain. Our journey at Roche proves that by embracing continuous learning and embedding responsible use, we can shift culture, boost confidence, and accelerate impact for patients globally.”