AI Revolution in UK Cloud Computing: Skills Gap Widens as Investment Soars
UK businesses are racing to embrace artificial intelligence (AI) and cloud computing in a rapidly evolving tech landscape. But as investments climb, a critical skills shortage threatens to slow progress. This eye-opening trend emerges from a recent survey of IT leaders across the UK and other major markets.
The AI Skills Crunch
The numbers paint a stark picture. 81% of IT managers report an urgent need for AI expertise. This marks a jump from 72% last year, highlighting a growing problem. The shortage spans critical areas like:
- Generative AI
- Large language models (LLMs)
- Data Science
This AI skills gap outpaces cybersecurity (75%) as the top talent concern.
Cloud Investment on the Rise
Despite these challenges, UK businesses are doubling down on cloud technology. The survey reveals:
- 28% of companies will focus heavily on new tech and innovation in 2025
- 61% plan to balance upgrades with new systems
- Over half expect to boost cloud spending by 21-50%
This push toward the cloud comes with clear goals. IT managers are prioritizing:
- Cloud-native app development
- Evolving cloud strategies to match business needs
Both these areas were cited as top priorities by 89% of respondents.
The Open Source Advantage
Nearly all IT leaders (98%) benefit from using open-source solutions for AI. They point to faster innovation and cost savings as crucial perks. This widespread adoption of open-source tools could help ease some skills crunch.
Challenges on the Horizon
The AI-driven shift to the cloud isn’t without concerns:
- 43% worry about data privacy and security
- 39% fear excessive energy use and sustainability impacts
- 32% lack the proper infrastructure for AI
Internal Roadblocks
Even as companies push for cloud adoption, they face hurdles from within. A massive 96% of leaders say siloed teams hinder progress. This lack of unity causes problems:
- 54% see negative impacts on security and compliance
- 42% report increased costs
The Cost Factor
Speaking of costs, cloud spending is on the rise. Three in five businesses report higher cloud bills over the past year, and for nearly 40%, those increases topped 25%. This has some questioning whether the cloud is living up to its cost-saving promise.
Bridging the Gap
Laura Lodwick, chief talent officer at AND Digital, offers insight: “Businesses must invest not just in AI tech, but in their people. They need the skills to guide AI’s growth and unlock its full potential.”
Lodwick stresses that pure AI skills aren’t enough. “AI demands a broader skillset. This includes data expertise, people skills, and a grasp of ethics. We need to balance how AI models are trained and used. This ensures trustworthy outputs, especially for business decisions.”
She advises: “As companies look to AI for cloud projects, the first step should be upskilling staff. Without this foundation, they risk problems during rollout.”
Looking Ahead
Jo Hodgson, UK country manager for Red Hat, sums up the situation: “UK businesses want to innovate with cloud tech to stay competitive. They also need to manage costs and find savings. AI could help address many business needs.”
The message is clear: AI and cloud computing offer huge potential. However, companies must invest in technology and talent to truly benefit. By closing the skills gap and breaking down internal silos, UK businesses can harness the full power of these game-changing technologies.
As the AI revolution reshapes cloud strategies, the race is on. Those who can blend cutting-edge tech with top-notch talent will lead the pack in this new digital frontier.
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