How Technology Leaders are Closing the AI Skill Gap
Many businesses are tightening their belts in the face of recent economic uncertainty. At the same time, cybersecurity professionals and AI talent are more in demand than ever before. This AI skill shortage, coupled with the high demand for skilled cybersecurity professionals, presents a major challenge for IT leaders in 2024 and beyond.
As IT leaders eagerly anticipate the full integration of AI technology into their organizations, they are also faced with the immediate need to fill roles that require specific technical skills. These skills are currently in high demand in the tech industry and are crucial for driving innovation and efficiency within organizations, but the talent needed to fill these crucial roles is in short supply.
Eliassen Group surveyed 1,000 technology leaders across the U.S. and asked the question: How can leadership balance the growing need for AI professionals with the increase in skill gaps, talent shortages, and more? Keep reading to learn how companies are addressing the global talent shortage.
Look for upskilling opportunities with your current staff
The best way for companies to deal with the talent shortage is to offer their current employees the opportunities to learn new skills. Companies should assess the return on investment to establish upskilling programs and provide educational opportunities and training for their existing staff.
"The major players in the technology space are moving so fast on AI because tech spending during the Covid-19 pandemic focused largely on infrastructure and hiring,” said Kolby Kappes, vice president of development at Eliassen Group. Once the capital being invested in those infrastructure projects dried up, they were left with massive head counts and no clear direction for addressing what’s next.
If your organization can afford to retain some or all of the headcount it acquired during the pandemic, now may be the time to reskill them for redeployment on projects like an AI pilot or measures that will reduce your cybersecurity skills gap.
Our survey found that 54% of companies are now looking to build an upskilling strategy utilizing existing employees to accomplish their 2024 goals. Businesses are looking for ways to make do with their current budgets and staff shortage. However, based on the information we have today, organizations are unclear about which professions and skills will be needed to make AI operational for their business.
Determine what skill sets are in demand
While IT leaders wait for AI to become operational across the enterprise, what skills are in demand today? And what impacts are these new technical skills having on today’s tech functions? Our survey found that cybersecurity teams suffered the biggest skill gaps, at 29% and 28%, respectively. These sectors were followed closely by cloud computing and digital transformation (21%), and new technology procurement (19%).
From an industry-by-industry standpoint, the cybersecurity talent gap was felt most acutely by respondents from companies in human resources, information services, software, healthcare, finance, and insurance. These industries, both regulated and otherwise, may be adjusting to new regulatory requirements, or they may be preparing for what they see as an uncertain — but certainly digital — future.
Companies looking to hire AI talent should first carefully assess their specific needs and goals. Today, it seems like every company is "doing AI," but many tech leaders aren't sure how to achieve ROI and justify continued investment. Companies must decide whether they need an A-team of AI researchers to reach their goals, or if an engineering team trained to utilize AI tools can get the job done.
Continue hiring, but be smart
Despite current economic conditions, companies are still looking to hire talent with in-demand skills, just to a lesser extent. Pandemic era investments in the technology sector have decreased, but the competition for skilled workers in the labor market has only increased. Larger organizations can offer more competitive packages or remote work opportunities to attract and retain talent, but smaller organizations are falling behind.
“The holding pattern we’re in today can’t last forever,” stressed Chad Durden, regional vice president for the western U.S. at Eliassen. “If AI delivers even a fraction of what it promises, hiring budgets will have to expand, and companies will once again need to add headcount, either in the form of full-time hires, temporary resources, or, most likely, a mix of both.”
"Any lull in demand for this talent — like the one we’re seeing in some sectors at the moment — is almost certainly temporary," said Durden. Companies that are lagging behind are soon going to find it harder and harder to close the cybersecurity and AI talent gap compared to their competitors, who have more time, money, and resources.
In fact, when asked to select all the ways they plan to leverage talent to achieve their goals, 39% of tech leaders plan to outsource hires or to supplement full-time hires with outsourced temporary staff. In the long run, organizations will have to make space in their budget to hire new talent simply to stay in the AI race, let alone be a leader or innovator.
Building a Strategy to Close the AI Talent Gap in Your Organization
“Most organizations we talk to say that AI is either already a priority or it’s going to be a priority,” said Tim Biscoe, regional vice president, of northeast territories at Eliassen. Biscoe pointed out that these expectations have resulted in a kind of AI arms race, even though no one’s quite sure what the targets — or even what the “arms” themselves — will be.
“What we’re hearing from technology executives is that they expect hiring and tech investments to really ramp up,” he said — and the IT leaders we surveyed agree: 72% believe that their IT budgets will increase over the next year, while just 15% believe they’ll shrink.
Overall, the demand for these technical skills highlights the importance of continuous learning and upskilling in the tech industry. IT leaders must prioritize investing in their employees' development to ensure that they have the expertise needed to navigate the ever-evolving technological landscape and drive success for their organizations.
Planning strategically to secure the talent you need for tomorrow
Companies that advocate for a sustained investment in these initiatives can propel business objectives while promoting employee engagement and retention through long-term career growth.
Planning strategically to secure the talent you need for tomorrow (while upskilling and reskilling the resources you have on hand right now), are two key steps IT leaders can take to position their organizations for success, no matter what the future holds.
Today, the first instinct may be to downsize those teams, but that may not always be the best option. Instead, companies may want to consider seeing where else those hires can be leveraged. If the transferable skills are there, having a re-deployable cohort of skilled technology professionals who are already familiar with your organization’s culture and mission could offer your organization a critical edge as we venture into uncharted waters.
For more information on hiring and investing for the future of AI, download our white paper, "The Stall Before the Storm."
