How UK Innovators Intend to Overcome a Skills Gap That’s About to Widen as ID Cards Loom

According to a recent report by Nash Squared and Harvey Nash, AI skills shortages reported by UK technology leaders have increased by 114%, with 52% now experiencing a gap. 

Artificial intelligence has quickly become the UK’s scarcest tech skill to address, but the recent announcement of digital ID cards may cause more industries to experience widening gaps among talented workers. 

In announcing that anybody without a digital ID card will not have the right to work in the United Kingdom, Prime Minister Keir Starmer has sought to crack down on illegal immigration in the country, but at a time when businesses are already grappling with a weak job market and lower levels of consumer confidence, the prospect of more hurdles to building a talented workforce could be especially troublesome. 

The Challenges of a Digital ID

The UK government has been eager to cut illegal immigration and views the implementation of digital IDs as an effective tool to make it harder for those coming to the country illegally to find work. 

However, the plan has been met with some backlash over the privacy implications and implementation costs of the program. 

One major challenge is that these digital IDs would require individuals to not only have access to a smartphone but also to be fluent in the technology to use it to display their ID when proving their right to work. 

However, the digital ID card represents a significant added hurdle that could see more skilled individuals look elsewhere for work than before. This could be especially true in the tech sector, where matters of privacy and trust surrounding personal data are continually in the spotlight. 

It may be that tech talent will be too wary of the government to share their personal data when looking at working in the United Kingdom. Or, skilled workers may find that the added hurdle to finding work leads them to prioritise positions elsewhere. 

AI As a Cause and Solution to Skill Gaps

As the UK’s starkest tech skills gap, artificial intelligence is actively working to solve the challenges that it's creating in the midst of an ongoing generative AI boom period. 

According to Nash Squared’s report, 59% of UK companies aren’t looking to upskill workers in generative AI despite more firms ramping up their investments in artificial intelligence. 

Although organisations implementing large-scale AI projects have been found to be 21% more likely to expand their tech workforce, more employers anticipate that artificial intelligence will bridge the skill gaps it’s creating by fulfilling one in seven tech jobs within the next five years. 

Artificial intelligence is also taking a hands-on role in analysing and addressing skills gaps by looking internally at existing employees, their performance data, and career goals to develop customised learning journeys. The result is a tailored training approach that can help to drive productivity and on-the-job engagement. 

The real-world use cases for this are growing, with IBM pioneering an AI-based training solution. Using the firm’s AI platform, Watson, decision-makers could analyse employee data to identify gaps and recommend personalised learning paths to actively upskill workers. 

As a result, IBM was able to identify and address skills gaps in a way that improved employee retention while supporting a culture of continuous learning. 

EOR Offers a Strong Alternative

Employer of Record (EOR) services may be an effective alternative to bridging skills gaps across different industries in the age of digital ID cards. This is because they can onboard talent on a remote basis in a way that can benefit companies without the new recruit having to move to the United Kingdom for work. 

This approach can be particularly advantageous in hiring talented remote workers from emerging tech nations such as China, where payroll is outsourced and compliance obligations are handled automatically to adhere to local regulations. 

These EOR workers can then integrate remotely with their teams, helping to build the competencies of in-house staff, thus contributing to shrinking the skills gap in a proactive way. 

Talent in the Age of Digital IDs

UK innovators are rapidly adapting to an employment landscape that’s being transformed by artificial intelligence and the prospect of tighter regulations surrounding the right to work. 

The digital landscape fostered by artificial intelligence is causing more businesses than ever to cast their nets wider to discover the best talent to fulfill new roles created by accommodating AI, and the technology is helping to support upskilling initiatives that are helping workforces adapt to their new responsibilities. 

At the same time, EOR services are helping to maintain wider access to skilled workers overseas without the challenges of ID cards hindering the ability to hire. In a domestic workforce that may soon be facing new challenges, technology continues to create solutions in finding and onboarding talent.