Regional digital skills will power the UK’s AI-first future
The UK is uniquely positioned to lead Europe in AI, with a thriving tech ecosystem and world-class research institutions. However the crown of AI leadership is precarious. A stark regional skills gap is threatening the country’s progress. While London and a handful of other hubs continue to attract talent and investment, millions of workers elsewhere are being left behind.
A recent Lloyds report paints a sobering picture: 10 million workers in the UK still lack essential digital skills. For the government, this can’t just be another statistic – it’s a flashing red warning sign. The regions outside London are bearing the brunt of this deficit, putting the UK’s national AI ambitions in jeopardy. For AI to truly transform the economy, its benefits need to ripple out to small businesses and communities across the country.
The government has made no secret of its mission to drive economic growth. But it must recognize that digital inclusion and literacy are not peripheral to this – they are foundational to achieving this goal. Regional digital skills development isn’t just about equity; it’s about ensuring the UK can compete and win in the global AI race. To close the gap, the government needs to focus on three practical, targeted policies.
The first, is to overhaul regional education and training. Education systems across the UK need a serious upgrade if the UK is to close its digital skills deficit. Schools, colleges, and local training centers must be equipped to teach the skills that will power the next wave of AI adoption. Coding, data analysis, and machine learning fundamentals should become staples of the curriculum, but many institutions lack the resources or expertise to deliver this effectively.
The government should establish a Regional Digital Skills Fund to provide targeted investment where it’s needed most. This fund could subsidize teacher training programmes focused on AI and data skills, ensuring our schools have the confidence to teach cutting-edge subjects. It should also expand access to modern hardware and software, removing barriers for schools in underserved areas and exposing as wide an array as possible of kids to the next generation of technologies.
Beyond the classroom, partnerships with local businesses and universities could create tailored apprenticeship programmes. These would not only fill immediate skills gaps but also offer young people clear pathways into the digital economy. By embedding AI-related skills into regional education, the government can build a workforce ready to meet the challenges of the future.
The next step, would be to establish regional AI innovation hubs. While London and a handful of cities continue to dominate the UK’s tech landscape, regional innovation hubs could decentralize growth and spread opportunities more equitably across the country. These hubs should act as community anchors for digital skills training, research, and business support.
For example, a small business in the Northeast looking to adopt AI shouldn’t have to travel to London for advice. Regional hubs could provide accessible training sessions, AI pilot programmes, and expert consultation services. They could also act as incubators for local startups, giving entrepreneurs access to funding, cutting-edge tools, and mentorship from experienced local founders.
To make this happen, the government must provide seed funding and work with private-sector partners to ensure these hubs are self-sustaining. The key is to focus on practical and deliverable outcomes, such as helping local businesses adopt AI technologies, upskilling workers, and fostering a culture of innovation across the regions.
Finally, the government can work to incentivize private sector investment in digital and AI skills. Many companies already recognize the importance of investing in their workforce, but government incentives can help accelerate this process, particularly in regions where businesses face a technical skills crunch and tighter margins.
The government could introduce tax breaks for businesses that invest in digital training programmes for their employees. These surgical incentives could be targeted at sectors most affected by the skills deficit, such as manufacturing, retail, and logistics, all of which also stand to benefit significantly from AI adoption.
Another option is to establish a co-investment model where the government matches private funding for regional upskilling initiatives. For instance, if a tech firm wants to run a coding bootcamp in a rural area, the government could step in to share the costs. This would encourage more companies to take an active role in workforce development while reducing the financial burden on small and medium enterprises, and also spreading skills and opportunities across the country.
AI is poised to transform businesses of all sizes, from startups to shopping malls. But without a workforce equipped to capitalize on this technology, the UK risks missing out on its full potential. For both business and the government, regional digital skills are not an add-on – they are the key to unlocking AI’s economic benefits for the entire country.
By overhauling education, establishing regional AI hubs, and incentivizing private-sector investment, the government can create a digitally inclusive economy where every region thrives. This won’t just ensure that the UK stays on top in the AI arms race – it will mean that the UK’s AI-powered growth is shared, sustainable, and built to last.
Dr. Raoul-Gabriel Urma is an EdTech entrepreneur, author, and international speaker. He's the founder and Chairman of Cambridge Spark, a leading ed-tech startup educating professionals in AI and data skills.
