TechWM kicked off this year’s Birmingham Tech Week with an assembled panel of leaders at the city’s Millennium Point this morning discussing some of the challenges faced by businesses grappling with advances in technology, particularly AI.
Leaders from across the region and the UK, including the Rt. Hon Peter Kyle, MP, Secretary of State for Science, Innovation and Technology, discussed preview findings from a new report highlighting how nine in ten leaders in the Midlands are seeking to embrace the potential of AI to transform their business to achieve greater productivity and efficiency.
The Annual 2024/25 Trends Report – now in its ninth year – from Birmingham-based software company OneAdvanced highlights that 93% of Midlands leaders have been quick to recognise the potential benefits of AI to power more effective business processes and improve productivity with 31% saying they have already successfully implemented an AI-related project.
Combining the views of more than 6,000 senior executive voices from a cross-section of British business – the report illustrates a clear shift in strategic priorities and direction for businesses as they grapple with new challenges relating to the economy, the new government and the rise of AI.
However, a shortage of sufficient numbers of skilled and experienced talent is among the biggest challenges for organisations striving to implement new technologies like AI and other potentially transformative digital technologies. Nineteen percent say they have tried and were unsuccessful in implementing AI-related projects, and half of these (49%) blamed a lack of skills and experience to manage the project.
The IT skills gap is another challenge organisations in the Midlands must conquer, with 32% of the region’s leaders saying their business does not have the necessary expertise to move forward with AI implementation, which will stifle attempts to achieve productivity goals.
Some leaders remain cautious about the risks to their business using AI, with just 28% of respondents in the Midlands saying the UK has sufficient skills to enable effective, safe use of AI.
The region is, therefore at the forefront of calls for more government support, with 24% of Midlands business leaders saying the Government should implement regulatory reforms that will foster a more innovation-friendly environment. This is more than all other regions in the report, including 22% from the South West, 21% in London 21%, and 20% in East Anglia, North East, Northern Ireland, South East, and Wales.
In addition, 29% of Midlands respondents call for more government investment to enhance support for technology education and skills development programmes, and 25% think schools and colleges need more government investment to prepare the future workforce for AI.
Yiannis Maos MBE, CEO, TechWM shared: “We’re thrilled that OneAdvanced has chosen to preview their annual Trends report at Birmingham Tech Week, where we deep dive into the successes, challenges and innovations of the region. As ever, the findings provide a look at the vital signs of the ecosystem, offering both business leaders and policymakers the insights needed for progress.
Throughout the week, we’re bringing together these very people to create those roadmaps for change; ensuring that the West Midlands remains at the forefront of innovation. The report findings will be pivotal to steering focus to the real issues the region’s tech industry is facing.
The shortage of skilled talent and the need for more government support are key barriers that we must address and one that Birmingham Tech Week has recognised, shining a light on the issue through our Digital Skills Symposium and ministerial appearances. We look forward to seeing the impactful discussions that are to be had throughout the week off the back of these insights.”
Anwen Robinson, Senior Vice President of the Accelerator at OneAdvanced said: “The Midlands is home to some of the top educational institutions in the country, including the Universities of Warwick, Birmingham, Aston, Coventry, and Birmingham City. As an organisation, we benefit from being headquartered in the heart of the West Midlands because the region attracts some of the best technology talent and has a reputation for innovation.
“Getting to grips with the IT and AI skills shortage is not an easy fix, as it takes time to embed new courses and ensure educators are up to speed with rapidly evolving technology too. But if businesses can commit to working with educational institutions and government to ensure the skills being taught reflect the needs of the workplace, we will successfully foster greater innovation and technological advancement.”
Along with the IT skills shortage, budget is also a limiting factor for businesses in the Midlands, with 27% of business leaders saying they do not have the budget to begin implementing AI projects. More than half (52%) have cited cost as the number one barrier to implementing new technologies in 2024/25.
“Ensuring sufficient investment in future technology skills will be fundamental for successfully driving a world-leading computer science and AI industry in the Midlands region and the wider UK economy. It will be crucial for businesses to make a strong case for technology transformation budgets if they are not to get left behind by competitors.
Currently, 73% of Midlands leaders say they are ahead of or on track with competitors regarding their technology, which is very encouraging. But they will need to ensure that the systems they have in place can support the integration of new technologies like AI, or they will fall behind,” comments Robinson.
The full OneAdvanced 2024/5 Trends Report, will be available from 4th November at: https://trends.oneadvanced.com.
