London Firms Face Skills Crunch as AI Takes Over Workplaces

A recent survey of over 2,000 business leaders in London has revealed that half of the city's companies believe their employees do not have all the skills needed for today's fast-changing workplace, especially with the rise of artificial intelligence, or AI. This is a drop from last year, when 63 percent of businesses felt their workers were well-prepared. The number of companies reporting major skill gaps has also increased, reaching the highest level since the survey began. This shows that as AI becomes more common, many businesses are worried their staff are not keeping up with the new demands.

The survey, carried out by Survation for BusinessLDN, found that three-quarters of London businesses are already using AI in some way. Only a small number, about 5 percent, said they have no plans to use AI. Among the companies using AI, 85 percent said it has changed the types of skills their workers need. Now, there is a bigger need for employees who can think critically, make good decisions, and understand ethical issues. The survey also found that 60 percent of businesses with skill gaps are missing workers with advanced digital skills, while 23 percent need people with basic digital skills.

Looking ahead, 78 percent of businesses expect they will need even more advanced digital skills in the next two to five years. Because of this, a record 81 percent of companies plan to increase their investment in training their staff, hoping to close the skills gap. However, some businesses are also planning to reduce their staff numbers, especially for entry-level and mid-career jobs that AI can now handle. Despite these challenges, most businesses do not expect to cut jobs, and the number of companies struggling to fill open positions has actually gone down. The survey highlights the need for a more flexible training system to help workers keep up with the fast pace of change in technology.