AI Skills Revolution: The Spring Statement’s Opportunity for Growth

A Defining Moment for the UK’s AI Ambitions

The Spring Statement’s emphasis on efficiency, growth, and targeted investment creates a framework for embedding AI skills development throughout our economy. By ensuring these skills are accessible at all career stages and sectors, we can build an AI-ready workforce prepared to drive innovation and productivity.

This is our moment to ensure the UK continues its trajectory as a global AI superpower, driving adoption and innovation. By combining the technological investment outlined in the Spring Statement with a comprehensive approach to skills development, we can create a future where businesses and individuals alike thrive in the AI economy.

Embedding AI into Government: A Strategic Signal

Chancellor Rachel Reeves’s recent Spring Statement comes at a pivotal time for the UK’s technological landscape. While much attention has focused on housing targets and defence spending, the allocation of £42 million for “pioneering Frontier AI Exemplars”, which will test and deploy AI applications in government operations, represents an important commitment to embedding AI innovation within the heart of government.

This commitment complements the Government’s AI Opportunities Action Plan announced earlier this year. In particular, to successfully “turbocharge growth and boost living standards” as intended, there is an opportunity to take advantage of the rapid technological advancements and deliver skills development initiatives, ensuring everyone across the country has the skills needed to thrive.

The Spring Statement acknowledges a world “changing before our eyes”, from global security challenges to economic headwinds. Yet, within these challenges lies a tremendous opportunity.

AI represents the most significant digital shift we’ve ever witnessed, capable of driving productivity and innovation across every economic sector and benefiting people of all ages, backgrounds and regions.

Harnessing Technological Change for Inclusive Growth

Currently, at least 80 per cent of the predicted 2030 workforce is already employed, yet a recent study indicates approximately 52 per cent (21 million people) lack the necessary workplace digital skills. We can seize this moment of the AI revolution and make urgent progress upskilling the nation. The Spring Statement’s focus on efficiency and modernisation across public services provides an ideal foundation for prioritising these skills.

The newly established £3.25 billion Transformation Fund, while primarily targeting efficiencies, offers an excellent opportunity to incorporate AI skills development into public service reform. Similarly, the Government’s target that one in ten civil servants will be digital professionals by 2030 recognises the changing nature of work across all sectors.

Building an AI-Ready Workforce Across All Sectors

For these initiatives to achieve their potential, there is a chance to integrate them into a comprehensive approach to lifelong learning. The Skills England programme and updated Lifelong Skills entitlement referenced in the AI Opportunities Action Plan provide solid foundations, but rapid expansion is essential to match the accelerating pace of technological change.

The Construction Skills package announced in the Spring Statement demonstrates how sector-specific training can address economic bottlenecks. A comparable approach with AI skills, creating learning pathways for all career stages across all industries, would ensure that technological advancement translates to inclusive economic growth.

The Power of Partnerships and Accessible Learning

No single entity can address this challenge alone. By expanding partnerships to specifically address AI skills and creating flexible, accessible learning opportunities, from basic awareness to advanced technical capabilities, we can ensure AI becomes a tool for empowerment.

With the OBR forecasting stronger growth from 2026, we have a critical window to prepare our workforce for the opportunities ahead. The Chancellor’s recognition that above-inflation public sector pay increases should accompany productivity gains highlights the crucial role that technology and skills must play in our economic future.

By Professor Rachid Hourizi MBE is Director of the Institute of Coding, which is led by the University of Bath