Demand is climbing fast. Demand for AI skills increased nearly 200 percent in a year, with London accounting for 80 percent of AI-related job postings and nearly two-thirds of all technology vacancies in the UK according to Accenture data reported by The Register. That tells you where the heat is, and how quickly employers are rewriting their job specs.
The sector itself is sizeable. The updated Digital and Technology sector definition contains 107,082 D&T sector companies, representing 5.2% of all companies within the UK per GOV.UK's Digital and Technologies Sector Economic Statistics. These are the firms competing for the same AI talent, and official employment estimates track filled jobs in the UK digital sector across April 2023 to March 2024 as measured by DSIT's Digital Sector Employment estimates.
Policy is pushing in the same direction. During London Tech Week 2025, the UK government announced a partnership to upskill 7.5 million UK workers in essential AI skills by 2030, equivalent to around 20% of the UK workforce techUK reports. That scale of ambition reshapes who you can hire and how you train them.
The job numbers point to growth, not wholesale loss. For the total of AI-related occupations, the net change ranges from approximately 696,000 jobs in the Automation Scenario to 1,072,000 in the Technological Opportunities Scenario, with replacement demand rising from 3,077,000 to 3,193,000 jobs across these scenarios according to GOV.UK's AI Skills for Life and Work projections. Replacement demand alone keeps a steady flow of openings for people with the right skills.
New entrants are gaining ground too. Apprenticeships have risen from 3% of AI hires in 2020 to 19% in 2025 the DSIT AI Labour Market Survey 2025 found. That shift opens the door to people building skills on the job, not only those with years of experience.
Who gains the most? Workers who add AI skills, firms that act early, and sectors already putting AI to work. Sectors like retail and logistics were already actively integrating AI to improve customer insights and streamline functions such as inventory management and supply chains GOV.UK's AI Adoption Research notes, which means the value spreads well beyond pure technology companies.
Start by widening your talent pool. With apprenticeships now a fifth of AI hires as the DSIT AI Labour Market Survey 2025 shows, it pays to assess for potential and trainability, not just a fixed checklist of past tools. Write specs around problems to solve, and you will attract people who can grow into the role.
Look beyond London. With 80 percent of AI-related job postings concentrated in the capital per Accenture data reported by The Register, remote and regional hiring gives you access to candidates other employers overlook. International talent helps too: top technology firms can pay sizeable wages to skilled migrants, while pay for engineering professionals on the Skilled Worker route is broadly in line with the UK average the Migration Advisory Committee reports.
Then move quickly. Demand is rising sharply on Accenture's figures reported by The Register, so a slow process loses the best people to faster employers. Keep interviews focused, give clear feedback, and set out how you will support ongoing AI learning once someone joins.
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