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AI becomes world’s most in-demand tech skill in shortest timeframe Half of global technology leaders now have an AI skills shortage Steep rise linked to 90% of tech leaders investing in AI But over half of companies aren’t upskilling in GenAI LONDON, 19th May 2025 - Artificial intelligence has created the world’s biggest and fastest developing tech skills shortage in over 15 years, finds a new Nash Squared/Harvey Nash report that has been tracking the views of technology leaders since the late 1990s. The Nash Squared/Harvey Nash Digital Leadership Report, the largest and longest-running survey of technology leadership in the world, found that AI has jumped from the 6th most scarce technology skill to number one in just 18 months – the steepest and largest jump in any technology skills shortage recorded for over 15 years. Almost twice as many technology leaders (51%) compared to the previous report (28%) now say they are suffering an AI skills shortage, an 82% jump. In the previous 16 years that Nash Squared/Harvey Nash has tracked technology skills shortages globally, the next biggest reported jump was a shortage in Big Data skills, with a jump of just 38%. Even with Cyber skills, for which demand continues to grow, the increase in scarcity has been gradual – rising from 16% in 2009 to 33% this year.This rapidly developing AI skills shortage is closely linked to a significant growth in investment, with 90% of global technology leaders now reporting they are either piloting AI or investing in small - or large-scale developments. This has skyrocketed from 59% in the previous Digital Leadership Report. Despite this steep rise, over two thirds (67%) of all technology leaders report they have not received measurable ROI from piloting AI. Larger organisations, however, are faring better in quantifying results: more than half (53%) of larger organisations with technology budgets exceeding $500 million report a measurable return.Although AI investment has helped create this rapidly-developing tech skills shortage, technology leaders and their companies still are working on how to respond to the crisis, and the report found that over half of companies (52%) are not upskilling in GenAI. But it is not just a skills question: operating models will need to change as the tech team is increasingly supplemented by AI and activities like software development are revolutionised. Bev White, CEO of Nash Squared said:“As AI continues to accelerate, the scale of the skills challenge is becoming clear. Businesses have a pressing need to ensure their technology teams are equipped with the skills to leverage AI to full effect, or the implementations they are making could fall short. As AI is so new, there is no ‘playbook’ here – it’s about a mix of approaches including formal training where available, reskilling IT staff and staff outside of the traditional IT function to widen the pool, on-the-job experimentation, and knowledge sharing and transfer. This needs to coincide with the development of a new operating model where AI is stitched in. Quite simply, those organisations that rise most effectively to the AI challenge will be in the driving seat to succeed.”AI shaping investment decisions:Boards backing AI-driven spend – Overall, as with other business functions in uncertain economic and geopolitical times, the outlook for technology budgets has dipped from the highs seen during and after the pandemic – but still, over a third (39%) of technology leaders expect their budget to rise. Investment has become more selective. Boards are most attracted to clear business cases tied to operational efficiency and AI-powered growth.AI increases headcount rather than replaces it:AI organisations recruit more technologists – The organisations most ahead with large-scale implementations of AI are 24% more likely to be increasing their tech headcount than their peers, mostly in areas of AI and data.AI’s impact on future hiring - Tech leaders expect one in five of their technology jobs to be fulfilled by AI in the next five years. But the Nash Squared/Harvey Nash report highlights that AI isn’t replacing people, it’s changing the kind of people leaders want to hire and the operational models they are part of.AI equivalent to 3 years’ tech experience – Almost two thirds (65%) of tech leaders would choose an AI enabled software developer with just two years’ experience over one with a five-year career but without AI skills.Organisations that engage with Gen Z are making more progress in AI - Compared to the global average, organisations that attract, retain and incorporate the viewpoints of Gen Z are twice as likely to be prepared for the demands of AI and one-fifth more likely to report a measurable ROI from AI.Demand up for cyber skills - but down for software engineers:Demand for cyber security skills jumps - After a period of decline, cyber-attacks have once again increased, and the skill demand has grown in response (up 22% since the last report).Major decline in software engineer shortages – With software development the most widely adopted use case for AI, it appears to be plugging a skills gap that has long been a challenge to recruit. Software engineer shortages dropped 26% since the last report.Enterprise/solution architecture sees the biggest fall - The growth in agile methods as well as the use of cloud technologies has decentralised project delivery and reduced the need for heavyweight roles in enterprise/solution architecture.Cyber-crime jumps for the first time in five years:Major cyber-attacks are rising again – 29% of tech leaders were subjected to a major attack in the last two years, the highest level since 2019 (32%) and breaking a downward trend in the last five years.Threat from ‘foreign powers’ and ‘insiders’ rise steeply - While organised crime remains the primary cause for concern, there has been significant growth in the threat from ‘foreign powers’ (40% in 2022 to 50%) and ‘insiders’ (33% to 42%).DEI progress, but gender parity flatlines:DEI efforts remain strong despite shifting political winds - Four in ten organisations have ramped up their DEI focus over the last two years, and very few tech leaders report DEI reducing.Recognising neurodiversity - Around one-fifth of a tech team could be considered neurodivergent, and nearly half of leaders (47%) have practices in place to support neurodivergent talent. Progress on gender is stuck - Just 23% of tech teams are women – the same as two years ago. Women in leadership has dropped from 14% to 13% since the last report.AI-focused organisations have increased tech leader pay:Pay rises - Over half of tech leaders have had a salary rise in the last year, but for four in ten, pay has remained static.Tech leaders that have had a pay rise of 10% or more are distinct - Firstly, their CEO is significantly more focused on technology making versus saving money for the organisation (73% compared to the 66% global average.) They are also more likely to have a large-scale implementation of AI (27% versus 19%) and more likely to be increasing tech headcount (50% versus 41%).Andy Heyes, Managing Director, Harvey Nash, UK&I and Central Europe concluded:“AI is front and centre of most organisations’ technology plans – and it’s encouraging to see that the businesses that are the furthest ahead also have the biggest people need. Rather than killing jobs, AI is changing them and creating new working models. It is also spilling over into a higher likelihood of pay rises, on average, for technology leaders. AI is changing the technology industry and the people dynamics within it, creating new fields of opportunity for those that embrace the challenge.”-ENDS-About the ReportIn its 26th year of publication, the 2025 Nash Squared/Harvey Nash Digital Leadership Report is the world’s largest and longest-running survey of senior technology decision makers. Launched in 1998 and previously called the Harvey Nash CIO Survey, it has been an influential and respected indicator of major trends in technology and digital for over two decades. This year the survey of 2,015 technology/digital leaders globally took place between 13th December 2024 and 26th March 2025 across 62 countries. This period captures the impact of major geopolitical changes that occurred following the change of Administration in the US.To request a full copy of the results, please visit http://www.harveynash.co.uk/research-whitepapers/digital-leadership-report-2025About Nash SquaredNash Squared are the leading global provider of talent and technology solutions.We’re equipped with a unique network, that realises the potential where people and technology meet. For over three decades we’ve been helping clients solve broad and complex problems, building and transforming their technology and digital capability.www.nashsquared.comFollow us on LinkedIn at https://www.linkedin.com/company/nash-squared/About Harvey NashHarvey Nash are masters of technology recruitment. We help organisations find the very best specialist talent – from Cloud Services to Data and Analytics, DevOps to Cybersecurity, Engineering and App Development through to AI, Business Transformation and Technology Leadership. With over 35 years’ experience and global reach, we have an unparalleled knowledge and capability in all areas of technology.We are part of Nash Squared - the leading global provider of talent and technology solutions, equipped with a unique network that realises the potential of where technology and talent meet.www.harveynash.comFollow us on LinkedIn at https://www.linkedin.com/company/harvey-nash/Media Contacts:David PippettProServ PRdavid@proservpr.com+44 (0) 7899 798197Michelle ThomasHarvey Nashmichelle.thomas@harveynash.com+44 (20) 7333 2677

Is a degree still an essential qualification to have these days? Or are we seeing a major shift in how employers view university degrees. Andy Heyes, Managing Director of Harvey Nash UK, Ireland & Central Europe shared his thoughts with the Sunday Times. The article examines the growing number of businesses across the UK that are removing academic barriers to entry in favour of more inclusive, skills-based hiring. With rising tuition fees and a changing skills landscape driven by rapid technological advancement, more employers are prioritising potential, practical experience, and soft skills over formal qualifications. Andy was quoted discussing the role recruitment partners like Harvey Nash play in helping businesses adapt to this new way of thinking: “Inclusive hiring and skills-based hiring processes have come to the fore so that employers can broaden the talent pool. It better reflects the society and communities that businesses are serving and selling to” said Andy Heyes. The article also includes insights from major employers, each offering their perspective on why widening access to opportunity is not only fairer, but often more effective in meeting evolving business needs. This is a timely and important conversation, especially as industries face growing skills shortages and seek to build more diverse, future-ready workforces. Read the full article on The Sunday Times website

New AI Energy Council holds first round of talks on delivering the power which will drive the UK's AI ambitions. Technology and Energy Secretaries chair first round of talks on driving forward power and AI goals - central to delivering growth, jobs and opportunity through government's Plan for Change. Energy representatives such as NESO, EDF, Scottish Power, Ofgem, and National Grid to join tech heavyweights Microsoft, ARM, Google and Amazon in sharing expert insights. Industry heavyweights from the energy and technology sectors will descend on Whitehall today (8th April) for the first meeting of the UK’s new AI Energy Council. Co-chaired by the Technology and Energy Secretaries, today’s inaugural meeting will see members agree the council’s objectives with a key aim focused on how the government’s clean energy superpower mission, and its commitment to advancing AI and compute infrastructure, can work together to deliver economic growth. It’s expected the Council will also look at clean energy, like renewables and nuclear - advising on improving energy efficiency and sustainability in AI and data centre infrastructure, such as the use of water. The council will also take steps to ensure the secure adoption of AI across the UK’s energy network itself. Unveiled in January as part of the government’s response to the AI Opportunities Action Plan, the Council will bring together expert insights on the energy demands of AI, as the UK puts the technology front and centre of its plans to drive economic growth and deliver its Plan for Change. Concerns over the energy demands needed to power AI data centres is an issue faced by countries the world over. One of the ways the UK is already rising to meet this challenge is by focussing its new AI Growth Zones – dedicated hotbeds of AI development - in areas which can access at least 500MW of power. Representing the equivalent of enough energy to power roughly two million homes, this will help to spark significant private investment from companies looking to set up shop in Britain - creating local jobs which will put more money in people’s pockets. Secretary of State for Science, Innovation, and Technology, Peter Kyle said: “The work of the AI Energy Council will ensure we aren’t just powering our AI needs to deliver new waves of opportunity in all parts of the country, but can do so in a way which is responsible and sustainable. “This requires a broad range of expertise from industry and regulators as we fire up the UK’s economic engine to make it fit for the age of AI – meaning we can deliver the growth which is the beating heart of our Plan for Change.” Secretary of State for Energy Security and Net Zero, Ed Miliband said: “We are making the UK a clean energy superpower, building the homegrown energy this country needs to protect consumers and businesses, and drive economic growth, as part of our Plan for Change. “AI can play an important role in building a new era of clean electricity for our country and as we unlock AI’s potential, this Council will help secure a sustainable scale up to benefit businesses and communities across the UK.” The UK Government has also been working closely with both Ofgem and the National Energy System Operator to deliver fundamental reforms to the UK’s connections process. Subject to final signoffs from Ofgem, this could release more than 400GW of capacity from the connection queue - accelerating projects vital to economic growth such as the delivery of new large scale AI data centres. Joining the council are 14 organisations – including regulators and companies drawn from the energy and tech sectors - who will support its work by sharing expert insights. Among these organisations are: EDF, Ofgem, NESO, Scottish Power, National Grid, Google, Microsoft, Amazon Web Services, and chip designer ARM, and infrastructure investment firm Brookfield. This collaborative approach which brings together the energy and technology sectors will make sure there is join up across the board to speed up energy projects getting connected to the grid – especially with a growing pipeline of tech companies announcing plans to build datacentres across the UK. Alison Kay, Vice President, UK and Ireland, at Amazon Web Services (AWS), said: “At Amazon, we’re working to meet the future energy needs of our customers, while remaining committed to powering our operations in a more sustainable way, and progressing toward our Climate Pledge commitment to become net-zero carbon by 2040. “As the world's largest corporate purchaser of renewable energy for the fifth year in a row, we share the government’s goal to ensure the UK has sufficient access to carbon-free energy to support its AI ambitions and to help drive economic growth.” Jonathan Brearley, CEO of Ofgem, said: “AI will play an increasingly important role in transforming our energy system to be cleaner, more efficient, and more cost-effective for consumers, but only if used in a fair, secure, sustainable and safe way. “Working alongside other members of this Council, Ofgem will ensure AI implementation puts consumer interests first – from customer service to infrastructure planning and operation – so that everyone feels the benefits of this technological innovation in energy.” As part of our Clean Power Action Plan, the government is getting more homegrown clean power connected to the grid by building the necessary infrastructure, prioritising the projects needed for 2030 to connect as much clean power as possible. We will clean up the grid connection queue, meaning crucial infrastructure from housing to gigafactories and data centres can get a connection to the grid, helping to unlock billions of investment and grow the economy. Bolstered by accelerated planning approvals which will mean spades in the ground at a fraction of the time it currently takes, AI innovators will be able to call on cutting-edge infrastructure and ready access to power to drive forward the next wave of AI opportunity. ENDS. Further Information Attendees to the first meeting of the AI Energy Council will include representatives of: Ofgem NESO Energy Networks Association Nuclear Industry Association ScottishPower National Grid EDF Google Microsoft Amazon Web Services Equinix Brookfield ARM ARIA. The council will meet on a quarterly basis, with the next meeting scheduled for this summer.

Tailored Talent Solutions to Deliver Lancaster University Digital Transformation Strategy Lancaster University required support filling key vacancies across multiple IT disciplines at a critical phase of their strategic transformation. The University selected Harvey Nash as their exclusive recruitment partner to support the campaign, providing recruitment, consultancy, and market insight. Objectives Lancaster University needed technical resources and expert consultancy to help enable them to successfully implement their largest and most ambitious digital transformations. Their strategy aimed to revolutionise the institution's digital infrastructure, streamline administrative processes through the adoption of AI and automation, enhance learning experiences, and elevate the overall efficiency and innovation within the university environment. Challenges The University faced challenges in staying competitive in an ever-evolving and highly competitive sector, enhancing recruitment processes to attract top talent, and addressing location-related constraints and hybrid working. Solutions Harvey Nash provided a bespoke campaign talent solution for Lancaster University, building strong relationships with hiring managers and carefully profiling roles to ensure market suitability. We streamlined processes to significantly reduce time-to-hire and supported salary grading and benchmarking. Beyond recruitment, we offered expert guidance on operating models, enhanced their employer value propositions (EVP), provided targeted marketing support including a dedicated landing page, and helped navigate Higher Education legislation and frameworks. “Phil and the team at Harvey Nash delivered outstanding support for our University’s IT recruitment campaign, successfully addressing critical challenges of location and market. Recruiting for a higher education institution requires a nuanced understanding of the academic environment and its unique demands, and Harvey Nash exceeded our expectations. In addition to achieving impressive results, Phil and the team worked closely with us to enhance and refine our recruitment processes in line with University recruitment guidelines. By leveraging data-driven insights and modern recruitment technologies, they significantly improved our ability to attract and assess top-tier talent across IT leadership, architecture, and support roles. I would recommend Phil and the team at Harvey Nash to any organisation seeking IT recruitment support, particularly within the higher education sector." Naomi Stewart, IT Resources Manager, Lancaster University The Results Local Recruitment Experts – With our experience of the local area and the sector, we identified candidates from Lancaster and its surrounding areas to deliver highly skilled talent that were both qualified and conveniently located to meet its specific needs. Strategic Partnership – Our exclusive collaboration with Lancaster University enabled Harvey Nash to deeply understand its needs. This insight led to bespoke recruitment strategies and strengthened candidate-manager relationships, playing a pivotal role in driving the successful progression of the Digital Transformation Programme. EVP and Marketing Support – Harvey Nash provided tailored Employer Value Proposition (EVP) advisory and marketing support to the University, including a dedicated landing page. This helped to attract top-tier talent by effectively showcasing its unique strengths and opportunities and providing an exceptional candidate experience. This strategic assistance enhanced the University's brand visibility and appeal, positioning it as an employer of choice within a competitive market. Speed to Hire – We significantly enhanced the University's speed to hire by streamlining recruitment processes and implementing efficient strategies. This ensured roles were filled quickly with the right talent, reducing downtime and enabling the University to maintain momentum in achieving its objectives.