HRreview Header

Al Bird: Chasing the gap – why the UK can’t seem to fix its digital skills problem

-

Forget, for a moment, what this means for businesses; we’ve all read the white papers on how poor digital literacy stalls productivity, innovation, profitability, you name it. What we’re facing in 2025 threatens much more: our economy losing £27.6 billion by 2030, 380,000 full-time jobs getting wiped off the table, the global competitiveness of Britain’s key growth-driving sectors sinking into mud.

And you can bet on the issue worsening. Recent studies show the pace of innovation is so fast that the half-life of tech-specific skills has dropped to just 2.5 years. So before most transformation programmes even reach implementation, the skills they’re meant to nurture are already obsolete. That alone should change how we think about digital upskilling; it’s not a one-time, reactive fix, but a continuous process of reinvention.

Our national conversation is stuck, and the biggest part of the problem is that we’re focusing on the wrong thing.

 

HRreview Logo

Get our essential daily HR news and updates.

This field is for validation purposes and should be left unchanged.
Weekday HR updates. Unsubscribe anytime.
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

 

AI is stealing the spotlight and it’s undermining digital skills

Right now, we’re collectively entranced by AI. Every boardroom conversation, every news cycle, every funding decision seems to hinge on becoming “AI-ready.” The irony is while we obsess over AI adoption, we’re ignoring the broader digital foundations that businesses urgently need.

Yes, AI literacy matters. But it’s not enough. The skills deficit that’s holding back our commercial sector is far more foundational: data analysis, cybersecurity, digital communication, tech-enabled productivity. These are the skills that keep companies functioning. AI is just one layer in this much wider ecosystem. Without the people to build, manage and secure that ecosystem, AI won’t matter because it won’t be delivered.

This is where the cracks are showing. Only 59% of the UK workforce can perform all 20 digital tasks considered baseline in today’s economy. We’re not talking about niche capabilities here, but basic functions like being safe online, using Microsoft tools or updating device software.

Even within the tech sector, where digital capability should be a given, over 30% of employees can’t perform essential digital tasks. So where’s the sense in being AI-ready if businesses lack the practical, underlying skills needed to sustain that transformation?

Short-term fixes won’t solve long-term gaps

The problem isn’t just focus, it’s approach. When businesses invest in digital upskilling, it’s often driven by fear-mongering tech headlines rather than long-term strategy. A new tool is introduced, so a quick course is offered. A new threat appears, so a webinar is rolled out.

But that isn’t a roadmap to digital fluency; it’s crisis management. And it does little to address the speed at which digital capabilities expire.

Upskilling needs to be pre-emptive, anticipating where tech is going, not just responding to where it’s been. That means embedding learning as a core part of work and making room for a broader definition of digital – not just those working in IT, but people across operations, HR, marketing and finance who now interact with digital systems daily.

Training must be precision-engineered to be effective

If a company’s cloud system needed updating every 2.5 years, it would be prioritised. The same urgency should apply to human infrastructure.

Closing the digital skills gap is all about relevance – training the right people in the right skills, and doing so at a pace that keeps up with technological change. That requires a consultative approach that gets under the skin of what each business and industry actually needs.

At Instep, this is how we approach the challenge: by partnering with businesses to diagnose skills needs, map them against current and future roles, and design programmes that meet those needs in real time.

Often, this involves helping businesses tap into government funding through mechanisms like the Growth and Skills Levy. More importantly, it means equipping people with durable, evolving digital capabilities. Not just how to use the latest software, but how to think digitally.

That includes core skills like digital logic, data processing, understanding how systems function, applied mathematics and real-world problem solving. These are the foundations that allow individuals to confidently adopt, adapt to and work with new tools as they emerge. It’s not about chasing the next app or programme, because most are past their prime before the ink dries on the training manual. It’s about building the cognitive infrastructure to keep pace with innovation. Tools change; mindsets don’t.

The government is paying attention, but it can’t act alone

Encouragingly, digital inclusion is on the government’s radar. In February 2025, a new Digital Inclusion Action Plan was launched to tackle digital exclusion and expand access to devices and skills training. While this is a vital intervention, it’s only part of the solution.

Government action sets the tone, but businesses must respond with strategies that treat digital capability as a live, evolving asset, from understanding digital workflows and navigating cybersecurity risks, to interpreting dashboards, updating systems and automating tasks. With 7.5 million adults lacking essential workplace digital skills, readiness (not just access) must be the priority.

We’ve talked enough

The digital skills divide is no longer just a business challenge; it’s a structural weakness affecting productivity, cybersecurity and workforce adaptability. As cloud infrastructure, automation and data-led systems become more deeply embedded across every function, the ability to interpret data, understand system logic and collaborate digitally is fast becoming the minimum standard.

We must prepare for a future where digital fluency is as fundamental as literacy or numeracy – treated as a core competency across all roles, industries and walks of life. The only way to make that happen is to get serious about training, and embed smarter, targeted learning that equips people to adapt as quickly as the tech does.

CEO at 

A recognised leader and innovator in workplace learning, Al has previously led Sanctus Coaching and KnowledgePool Group, and currently serves on the Board of Trustees of the Roffey Park Institute. Forever curious about people, technology and work, Al began his career in the Human Performance consulting practice at Accenture, and holds an MSc. in Cognitive Ergonomics from UCL.

Latest news

Neil Buck: Building effective AI policies in the workplace

AI offers organisations the chance to work more intelligently rather than simply faster - but these opportunities sit alongside genuine challenges.

Graduate job pathway weakens as young workers move into trades

Young workers are moving into trade-based careers as entry-level office roles decline and competition for graduate jobs intensifies.

AI could replace CEOs, warns OpenAI chief Sam Altman

“AI superintelligence … would be capable of doing a better job being the CEO of a major company than any executive, certainly me”

Smoking and vaping breaks ‘cost hours of working time each week’

Smoking and vaping breaks are taking up hours of working time each week, raising productivity and fairness concerns for employers.
- Advertisement -

Jessica Bass: What the Employment Rights Act means for HR leaders  

The Employment Rights Act represent a major shift in employment law - one that will increase cost and legal risk for employers.

£3.3 billion in training funds unused as employers struggle with skills levy

Billions in UK training funds remain unused as employers cut back on skills investment and workers pay for their own development.

Must read

Michael Bronstein: TUPE transfers and outsourcing – a meaty question

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) continue to generate difficult questions, more than 35 years after they were originally introduced in 1981.

Garry Goldman: Is hybrid working hindering younger employees?

With hybrid working now a permanent fixture in many organisations, how can employers ensure younger people in particular are supported, especially on days when they are working remotely?
- Advertisement -

You might also likeRELATED
Recommended to you