72 per cent of companies are facing a skill shortage in key areas like AI, data analytics, and cybersecurity – up from 69% in 2023, according to a new report, Docusign’s Digital Maturity Report 2024.

Of those that have skills gaps in their organisation, 53% say that talent shortages are materially impacting their business and ability to meet operational goals. More than half said this was a barrier to experimenting with innovative technologies.

Businesses are increasingly focusing on ‘quiet hiring,’ upskilling their current workforce, and leveraging AI tools such as ChatGPT to address the shortage without expanding headcount. The number of companies using AI to fill skills gaps has risen by 42% in 2024.

Despite increased investment in digital transformation, UK companies are still struggling to improve productivity. Workers are wasting an average of two days a week on manual, low-value tasks, costing businesses over £275 million in lost productivity each year.

Failing to embrace new technologies to reduce low-value tasks could be driving employees away. The number of staff thinking about leaving their employer due to the burden of manual tasks has gone up from 33% last year to 41% this year.

However, while 35% of companies plan to invest more in AI over the next year, only 43% feel fully prepared to implement it, with concerns around security and data protection still holding many back.

Despite these challenges, boosting efficiency through AI and digital tools remains a top priority as companies look to close the gap between their technology investments and productivity outcomes.

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Ronan Copeland, group VP and general manager for EMEA at Docusign, said: “AI has quickly become a key component of digital transformation, arriving at a crucial time to help organisations address two major issues: the skills shortage and the loss of productivity caused by repetitive tasks, leading to increasing workplace disengagement.

“To capitalise on AI’s potential and bridge the gap between what staff want from work and the realities of their roles which is currently making people consider leaving, companies must urgently focus on upskilling and reskilling, particularly in AI.

“Doing so can help tackle the disconnect between technology investment, digital maturity, productivity and people.”