Employers are not replacing people with Artificial Intelligence (AI). Despite the hype, only 10% of employers are using AI and automation to replace headcount. This is one of the key findings from ManpowerGroup's 2026 Talent Shortage Survey.
While AI may be having minimal impact on headcount, it has, for the first time, been identified as the skill (19%) that organisations are having the most difficulty finding. Contrary to what many might assume, this does not cover tech skills but instead points to literacy and confidence in using AI to support existing roles.
The survey also identified a year‑on‑year decline in the number of UK businesses struggling to find skilled talent overall. This figure is down marginally from 76% in 2025 to 73% in 2026.
Michael Stull, Managing Director, ManpowerGroup UK, says:
"Our research continues to demonstrate the power of people. Machines and AI can help to amplify productivity and effectiveness, but only so far. People are the vital component in unlocking the full potential of AI. That is why we are seeing increasing demand for these skills, as people and AI need to work in tandem."
Stull continues: "For 10 consecutive years the skills gap in the UK increased, so it's encouraging to see a more positive trajectory. However, two years of improvement doesn't negate the fact that the skills shortage is still too high, pointing to a deeper structural issue. Employers need to ensure they are not just thinking about the talent they need today; instead focusing on the talent they require tomorrow to future‑proof their business."
Find out more in the 2026 Talent Shortage Survey, including:
- Talent shortages by sector, region and company size
- Top five hardest to find skills
- How employers are addressing talent shortages.
