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Scottish businesses ‘lack confidence in AI and green tech’

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Scottish businesses ‘lack confidence in AI and green tech’

New data has found that more than half (56%) of Scottish organisations are reporting skills shortages.

This year’s Business Barometer report published by The Open University and the British Chambers of Commerce noted that this is lower than the UK average of 62% and a modest improvement on 2023 UK results, when almost three quarters (73%) reported skills shortages.




However, 23% of organisations have implemented a written skills plan for their workforce this year, hindering the ability to strategically address these issues and prepare for future demands.

While 56% of organisations reported a lack of confidence in applying new artificial intelligence (AI) and 47% in adopting green technologies, employers agree that these skills are crucial to the growth and sustainability of UK businesses and the wider economy.

Skills shortages and a lack of confidence continue to have a knock-on effect on staff morale and wellbeing, as 77% of employers say shortages have increased the workload of their employees – an indicator that employers need inclusive skills plans to fill key gaps.

The report also revealed that 38% of Scottish businesses intend to use mentoring or coaching within the next 12 months, while 32% intend to use apprenticeships over the next year.

While there is a commitment to address the skills shortage, the research also showed that the majority of businesses (52%) still do not have specific recruitment, training and retention initiatives in place for underrepresented groups, including young people, older workers, those with disabilities and neurodiverse individuals.

Baroness Martha Lane Fox, chancellor at The Open University and president of the British Chambers of Commerce, commented: “Despite tiny green shoots of improvement, the skills gap remains stubbornly high.

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