According to the latest Nash Squared/Harvey Nash Digital Leadership Report, over half of global technology leaders (51%) now say their organizations face an AI skills gap, nearly double the figure from last year.

As demand surges, traditional hiring and training approaches are no longer enough. Businesses must adopt fresh strategies to attract, develop, and retain AI talent in order to remain competitive.

1. Train Existing Staff to Keep Pace with AI Innovation

More than half of companies (52%) are not upskilling their teams in generative AI, according to the Nash Squared/Harvey Nash Digital Leadership Report.

This slow response contributes to a widening AI skills gap.

Ankur Anand, CIO at Nash Squared, stated, “Successful organizations have a business strategy that states what AI means to the enterprise and how talented professionals will address those concerns.”

He emphasized the value of continuous learning, saying, “The best companies develop a career growth plan, with role-based certifications… This clear career path becomes part of a continuous learning plan.”

2. Source AI-Skilled Experts with the Right Mindset

The report shows 65% of tech leaders prefer a software developer with two years of AI experience over one with five years of general experience and no AI background.

Anand explained, “AI challenges are complex, so businesses need that strong mindset.”

He said the most valuable professionals combine technical ability with business knowledge to help achieve organizational goals.

Ethical considerations are also essential, “If people deploy AI without the guardrails, they will not be able to develop solutions responsibly”.

He added that the best talent shares knowledge and mentors others, which strengthens the entire organization.

3. Change Your Recruitment Model to Focus on Skills

AI is reshaping traditional hiring practices. Anand noted, “AI is helping the industry move away from experience-based to skills-based assessment”.

AI platforms can now screen resumes and assess specific capabilities. Predictive models are also being used to identify the characteristics of successful hires.

Anand said top candidates won’t just offer technical skills. “Soft skills, combined with a few hard technical skills, will be the perfect fit,” he said.

He recommended casting recruitment efforts across diverse geographies and backgrounds.

4. Engage with Next-Generation Capability to Prepare for the Future

Organizations that incorporate Gen Z perspectives are twice as likely to be AI-ready and 20% more likely to report a measurable ROI from AI initiatives.

Anand emphasized the importance of aligning with the values of younger workers: “They look for organizations that align with these values.”

He said businesses must offer challenging roles and ongoing learning opportunities to retain them.

Flexibility is also critical. “A good work–life balance is the number one factor for choosing an employer,” he said.

Companies should create career plans that support this flexibility and meet Gen Z’s expectations for growth.

5. Keep Exploring New AI Opportunities to Stay Competitive

Organizations that lead in large-scale AI implementations are 24% more likely to increase their technology headcount, primarily in AI and data-related roles.

Some companies hesitate to adopt generative AI due to security concerns, but Anand cautioned, “If you don't engage with these technologies, your people won't stay.”

He said innovation should be encouraged: “They reward the risk-taking because even the failures drive new learnings, and these lessons will deliver success in the future.”

PHOTO: FREEPIK

This article was created with AI assistance.