CGI: How the Talent Shortage Threatens AI Transformation
Despite accelerating AI adoption amid economic and talent challenges, UK IT leaders lag behind their global peers in deployment scale and legacy modernisation, according to CGI.
The firm’s 2025 Voice of Our Clients report highlights the critical need for clear AI strategies, upgraded infrastructures, and talent retention to drive digital transformation and competitive advantage.
CGI’s 2025 Voice of Our Clients, in brief
Despite economic pressures and a tight labor market, 72% of UK executives recognise technology and digital acceleration as the primary forces reshaping industries.
The CGI report captures that UK organisations are moving beyond AI experimentation to practical deployments, integrating AI with cloud solutions and managed services to modernise legacy systems and streamline operations.
The emphasis, the research finds, is on shifting from strategy to execution to build future resilience and growth.
However, there are challenges in AI deployment and legacy tech.
While the UK shows slightly better confidence in keeping pace with digital change – 34% versus 28% globally – ageing IT platforms remain a significant barrier with 63% of UK leaders citing legacy tech as a bottleneck, far above the global average of 46%.
This inhibits faster AI adoption, with only 21% of UK organisations having deployed traditional AI and Gen AI solutions, compared to global rates of 35% and 26% respectively.
This demonstrates that clear strategic direction from top leadership is essential to overcome these hurdles and scale AI projects effectively.
“Despite strong economic headwinds, UK organisations aren’t hitting pause, they’re pushing forward,” says Tara McGeehan, President of CGI in the UK and Australia.
“The shift we’re seeing is from experimentation to execution. AI is no longer theoretical. It’s moving into production – and fast.
“The winners will be those who modernise their foundations now to scale adoption safely and effectively.
“AI isn’t the only game-changer on the horizon. Technologies like quantum and neuromorphic computing are coming fast and boards must be ready.
“Leaders need to create a culture of experimentation and stay alert to the next wave of disruption.
“The pace of change isn’t slowing and no one wants to be left playing catch-up.”
Factors exacerbating digital transformation risks
A major impediment to UK AI progress is a deepening tech talent crisis.
Approximately 76% of UK businesses report difficulties in recruiting and retaining IT professionals, with the public sector particularly hit at 86%.
Despite these shortages, the majority plan to maintain or increase IT budgets in 2026, signalling intent to invest in skills development and managed services partnerships to augment internal capabilities.
Geopolitical and social pressures are also influencing enterprise AI strategies
Shifting political, fiscal and regulatory landscapes are putting pressure on execs, with 60% highlighting these as critical concerns, although somewhat less than the global average of 67%.
Additionally, online misinformation and social polarisation present unique challenges to trust and perception, according to 24% of UK leaders compared to 17% globally.
Trends toward managed services and cloud migration
According to CGI’s research, UK enterprises rely more heavily on fully managed IT services for application modernisation – 20% versus 15% globally – leveraging these partnerships to offset talent scarcity and accelerate innovation.
Cloud adoption supports AI scalability and legacy application updates, essential for shifting away from outdated platforms – a combination that forms the backbone of the UK’s digital future and enables agility and cost-efficiency amid economic uncertainties.
The CGI Voice of Our Clients 2025 UK report paints a picture of an IT landscape in transition, where enthusiasm for AI and digital transformation exists alongside significant legacy and talent challenges.
Success, the company says, will hinge on leadership clarity, modern infrastructure investments and innovative talent strategies to unlock AI’s full potential and future-proof businesses in an accelerating digital era.
