Last month, the AI Opportunities Action Plan was announced. It is a roadmap document that contains 50 recommendations for the government to help to grow the UK’s AI sector, drive adoption of AI across the economy to boost growth and improve products and services.

For those working in the tech sector, the Action Plan is timely. It has been a shaky few years for the UK labour market, and tech, banking and financial services in particular have been badly affected by job cuts and reduced hiring.

In the short term this isn’t likely to improve. KPMG and REC UK’s monthly jobs barometer found a further deterioration in the health of the UK labour market at the start of 2025.

Demand for both staff and placements are continuing to decline, and vacancies have fallen to the greatest degree since August 2020.

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REC’s CEO Neil Carberry said of the findings that “…firms are slowing investment until they see more momentum in the economy.”

He pointed to the recent move on interest rates as a timely way of boosting confidence. “The more central role of growth in government thinking since the Chancellor’s speech last month will also help. But it takes time, and real action, to build business confidence.”

Within the tech sector, falling venture capital funding is also a concern. Fintech funding and deal volume dipped dramatically last year, with total funding down 54 per cent to $7bn across 323 deals. On a more positive note, average deal value increased to $21.8m, and money transfer fintech Zepz, actually secured one of the largest deals thanks to a $267m funding round.

As the AI Opportunities Action Plan comes into play, it is estimated to deliver 13,250 jobs. In order to do this, the government plans to put particular focus on deindustrialised regions of the country to become AI Growth Zones, aka “hotbeds” to re-energise specific areas, and attract investment and opportunities.

AI hiring is rising

The government’s plans are timely and interest is already building. A recent report from Morgan McKinley and Vacancysoft found that the UK fintech sector experienced a 44 per cent surge in job vacancies in 2024.

“The combination of increased investment in AI, political shifts in the UK and falling interest rates has made 2024 a pivotal year for the finance sector,” the report says.

The outlook for 2025 looks set to build on this. “AI and machine learning continue to reshape the industry, with a 98 per cent year-on-year increase in AI investments. Nearly two-thirds (63 per cent) of financial institutions now invest in AI, a substantial rise from 32 per cent in 2023”.

Fintech has become a “magnet for talent”, driven by widespread adoption of AI and automation. But while there are more job opportunities within AI, machine learning and automation, a new issue is emerging.

Skills gaps to be addressed

The UK is already in the throes of a significant tech and IT skills shortage. An IT Skills Gap Report from Forbes surveyed 500 British businesses, and found that 93 per cent think there is an IT skills gap.

This is down to the rapid pace of technological development, according to 42 per cent, with other factors including insufficient training opportunities, salary disparities, and low attraction to IT careers.

Fresh research from the City-Region Economic Development Institute (City-REDI) at the University of Birmingham has found that the UK could face economic losses of up to £27.6bn by 2030 due to unaddressed digital skills shortages.

Those skills include AI and ML, cybersecurity, data analysis and data science, programming, cloud computing, mobile app development, project management, network admin, project management and DevOps.

The Birmingham research also identifies that specific skills in high demand include Agile methodology, Python, Microsoft Azure, and Amazon Web Services.

In response, the government, via Skills England, says it will focus on closing skills gaps, training workers to meet the needs of a tech-driven economy, and promoting diversity to create a more inclusive AI field. Crucially, it also intended to address the issue within the education system, in order to produce more AI graduates and offer job-relevant training.

If you are already working in the artificial intelligence field then it’s a fertile time for job hunting. Increased AI adoption and investment is driving jobs growth, offering you the chance to maximise your skills to increase compensation and benefits.

The Information Age Job Board is the first step to discovering a new job that’s a perfect fit. tIt contains thousands of open roles across tech, fintech and AI all across the country.

Ready to put AI to the test? Visit the Information Age Job Board now

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