Investing in AI skills is crucial for several reasons. Firstly, it ensures that the UK remains competitive in the global AI landscape. Secondly, it addresses the skills gap that company leaders have repeatedly highlighted as a major obstacle when choosing where to invest. Thirdly, it supports the government’s broader Plan for Change, aimed at unlocking economic opportunities and supporting high-paying jobs through technological advancements. Universities can and should play a central role in this effort, as they can provide ties to both skilled workers and the organisations that need them.
the National Centre for Universities and Businesses Credit: NCUB.
Despite this clear need, the UK continues to face a skills gap and struggles to develop effective skills policies that can effectively respond to the challenge. The Confederation of British Industry has reported, for example, that seven in ten firms currently think that access to skills threatens the UK’s labour market competitiveness – a situation that is predicted to worsen. In 2021, Lloyds Bank estimated that more than a third of the current workforce lacked the essential digital skills needed for work.
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AI upskilling programmes must be collaborative
To effectively upskill the workforce, AI skills programmes must be designed in tandem with universities and industry partners. This collaborative approach ensures that the training provided aligns with the needs of businesses and the evolving demands of the job market – while building on long-established expertise in education and access to learners.
The UK Government has already taken significant steps in this direction. Backed by global technology giants such as Amazon, Google, Microsoft, IBM and Salesforce, it recently announced plans to provide AI training to 7.5 million workers by 2030. This initiative aims to prepare a fifth of the UK workforce for a future where AI plays a central role across all sectors.
The National Centre for Universities and Businesses (NCUB) has welcomed this approach. Industry partners bring expertise, resources and real-world insights to the table and many large companies are already delivering their own AI upskilling courses.
The value brought by universities must not, however, be left out of the equation. Universities provide ready access to large numbers of students (almost three million annually), who make up a sizeable proportion of the future workforce. They employ knowledgeable researchers as teachers and are experts in the kinds of learning pedagogies that provide a well-informed – but also, importantly, a flexible and adaptable – future workforce.
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By GlobalDataBy working together, universities and businesses can complement each other’s individual strengths. Partnership models are varied and often reflect the particular capabilities and requirements of the organisations involved. They can include collaborative curriculum design, contributions to strategic skills planning, higher apprenticeships, shared facilities such as ‘centres of excellence’ or hubs, staff mobility and student placements.
Universities-business research collaboration as a launch pad for deeper skills-oriented collaboration
UK universities already have significant and diverse experience of working with industry internationally to leverage AI for innovation and development across various sectors. For example, in 2024, German multinational Siemens and the University of Sheffield collaborated in using a cloud-based AI system to detect blockages in sewers, thereby reducing flooding and river pollution. In 2021, the company also collaborated with Newcastle University to improve the energy efficiency of electrically powered public transport.
Other examples include US-based Insilico Medicine working with the University of Cambridge on AI-driven techniques for drug discovery and Coventry University’s work with India-based L&T Technology Services on engineering innovations.
Research collaboration, through its contribution to the UK’s knowledge economy, is another important contributor to the UK economy, as previously shown by the NCUB in its report on attracting international investment in research and development.
Some universities are now directly capitalising on this expertise and experience – such as UCL’s Centre for Artificial Intelligence, which has demonstrated long-standing collaboration with industry players like Cisco, and is using these connections to enrich the student experience through its courses and through placements.
Looking ahead
As AI continues to evolve, the UK must remain committed to investing in its workforce, ensuring that people of all ages and from all parts of the country have the skills they need to thrive in the jobs of the future. If the government seeks to efficiently upskill the workforce, it must build upon the learning structures we already have and that businesses are familiar with. As demonstrated above, universities are well placed to do just that.
Rosalind Gill is the director of policy, analysis and external affairs at the NCUB, a not-for-profit organisation that promotes, develops and supports university-business collaboration. It is partly funded by Research England, part of UK Research and Innovation.
