AI Skills, UK Competitiveness and Why Policy Makers and Businesses Must Act Now

Over the past week I’ve had the privilege of speaking at two panel discussions in partnership with Skills England, the Institute of Directors and The British Academy. These events marked the launch of a new report, “AI Skills for the UK Workforce”, authored by my fellow IoD Ambassador, Dr Nisreen Ameen from Royal Holloway, University of London.

The first event was run by the Institute of Directors. The second was a panel session hosted at The British Academy to mark the official launch of the Skills England report. Both sessions introduced the new AI Skills Framework, the AI Adoption Pathway Model, and the Employer AI Adoption Checklist.

Across both events one message was clear. AI adoption is no longer a technical issue. It is a leadership issue.

The question is not whether businesses should use AI, but how they build the capability and confidence to use it well.

A significant report for UK business

The report offers the clearest picture yet of how AI will reshape the UK economy, the skills gaps we face, and the practical steps employers can take to prepare. It covers ten priority growth sectors, highlighting the barriers to adoption and the training gaps that are slowing businesses down.

Alongside the research, the Government released a companion announcement outlining the scale of the opportunity. If UK organisations close the AI skills gap, we could unlock up to £400 billion of economic value by 2030.

These are not small numbers. This is one of the most important economic opportunities facing the UK in our lifetime.

What the tools mean for business

At the IoD webinar, we explored the three new tools created to guide employers

• The AI Skills Framework
• The Employer AI Adoption Journey
• The AI Adoption Pathway

What struck me most is the simplicity. In a world filled with constant noise about AI, these tools strip away the complexity and give leaders a clear starting point. They offer structure, shared language, and sensible steps that SMEs can actually use.

As I said during the session, most business leaders are asking the same question:

“Am I just using ChatGPT to save time, or should I be thinking about something bigger?”

The answer is that AI is not just about speeding up tasks. It is about transforming the systems and processes that sit at the heart of an organisation. This is where the real opportunity lies.

Ethics, responsibility and the training gap

One of the biggest challenges we face in the UK is the ethical foundation of AI. Many leaders simply do not know where to start. Concerns about compliance often stop people experimenting altogether.

Yet experimentation is essential. If we lock everything down too quickly, we prevent our teams from learning. That is why I encourage organisations to create a simple one or two-page AI action plan — something that sets clear standards about which tools will be used, what will be excluded, how data is handled, and what remains off limits. Once the foundations are in place, teams can explore safely.

At my London-based agency, Iconic Digital, we run a weekly ideas factory. The whole team comes together, tests prompts, plays with tools, and learns by doing. This is how you build capability. And once the basics are in place, the assessment tools for privacy and security become far easier to apply.

AI has democratised the workforce

One of the most important points I raised at both events is that AI has already democratised the workplace. Junior colleagues can now communicate at a more senior level simply by using large language models. This is a shift we cannot ignore. It creates huge opportunity, but it also places fresh responsibilities on leaders to upskill, guide and ensure that AI is used appropriately across every level of the organisation.

If we do not invest in training now, we risk widening the gap between those who can use AI effectively and those who cannot.

The move from generative AI towards agentic AI means that process-driven tasks can now be streamlined and automated. Whilst we may still think that neuro-empathic intelligence is something of the future, 2026 looks set to be a year defined by robotics and machine learning algorithms that automate entire tech stacks. AI is therefore not a bolt-on but something that policy makers must harness, equipping British businesses to embrace it at speed in order to drive competitiveness in the global marketplace.

The chain of litigation and data risk

As businesses adopt AI, we must also understand the chain of litigation that runs through every supplier relationship. Tools such as ChatGPT and Microsoft Copilot host data in the USA, meaning they fall under the Patriot Act. The likelihood of data being accessed is low, but the risk exists. And in a world where privacy is becoming thinner, leaders must understand how responsibility flows up and down the supply chain.

No organisation operates in isolation. Weak contracts, unclear data policies or poorly chosen tools can expose a company in ways it did not expect. This is why frameworks like the new AI Adoption Pathway are essential. They help leaders assess, plan and protect their organisations in a practical way.

A leadership moment for the UK

Speaking at The British Academy reinforced that AI adoption is not simply a technological journey. It is a cultural one. It is about leadership, skills, ethics and confidence. It is about moving organisations from experimentation to sustained and responsible implementation.

If we get this right, the UK can lead. If we delay, we will fall behind.

As the Institute of Directors’ AI Ambassador, I am encouraged to see the momentum building. I am even more encouraged to see practical tools now being made available that businesses can act on today.

The opportunity is significant. The tools are here. The next step belongs to leadership.

If you would like guidance on applying the AI Skills Framework or building an AI action plan for your organisation, please get in touch with me today.

About the Author

Steve Pailthorpe is the Ambassador for Artificial Intelligence for the Institute of Directors Surrey & Berkshire branches. He is regularly featured in the national press as a marketing and AI strategist and contributes to how AI and digital media is adopted into organisations all over the world. Find out more on Steve Pailthorpe’s official biography.