Digital literacy and inclusion critical to skilling individuals and businesses for success in the age of AI.

To ensure individuals, businesses, and communities can thrive in the age of AI, government policy must place inclusion, digital skills, and adaptive regulation at the heart of a thriving, future-ready society.

Cross-party think tank Policy Connect’s latest report, ‘Skills in the Age of AI’, led by Lord Tim Clement-Jones and Lord Chris Holmes, sets out practical steps that can be undertaken by the Government to equip individuals and organisations with the digital skills needed to navigate rapid technological shifts.

The landscape of AI has evolved at an unprecedented pace – transforming economies, industries, and the very nature of work. In an effort to strengthen the nation’s AI capabilities and workforce readiness, the UK Government has delivered a series of policy initiatives, including the AI Opportunities Action Plan in January 2025, that aim to build strong foundations for AI, transform lives through its adoption, and nurture homegrown talent.

However, as Skills in the Age of AI makes clear, these initiatives are currently undermined by critical gaps in AI policy frameworks that demonstrate a stark disconnect between skills policy and the lived experiences of individuals, businesses, and communities navigating AI adoption.

Policy Connect’s research emphasises the importance of inclusive AI policy design that builds a confident, digitally capable, and future-facing society, with community-driven upskilling pathways, localised public engagement campaigns, and adaptive governance structures that align rapid technological change with human needs.

Skills in the Age of AI presents a practical vision for prioritising digital skills and inclusion across AI policy to ensure its benefits are widely shared, and that no one is left behind in the next industrial revolution. It outlines a set of actionable recommendations for government, industry, education, and civil society, covering the following themes:

• The Importance of Education and Public Communication.
• Digital Skills for the Workforce.
• Regulatory Safeguards for a Confident Society.

Lord Tim Clement Jones, Inquiry Co-chair

“I was delighted to co-chair this fourth inquiry on artificial intelligence (AI) and data led by Policy Connect, into our readiness as a nation to take advantage of the most consequential technology of the 21st century. The opportunities to use AI as a force for good, to enhance our lives, are there for the taking – if our businesses and citizens have the knowledge, skills, and trust to exploit them safely and securely. Skills in the Age of AI, with its focus on education, support for SMEs, and regulation, is a practical guide to what needs to be done to give us those skills.”

Alyson Hwang, Report Author

“AI is transforming our economy and society at an unprecedented pace. To ensure everyone benefits from the technological revolution, we must urgently equip people with the skills and confidence to navigate an era of continuous change. Fortunately, the government has worked swiftly to address critical gaps this year through the AI Opportunities Action Plan, but what else can be done? Our report sets out a practical roadmap for education, workforce development, and digital inclusion - by working together across sectors, we can close the skills gap, unlock opportunity, and build a future where no one is left behind in the age of AI." 

Penny Jones, Responsible AI Lead, Zurich UK

“Responsible AI depends as much on people as on technology. At Zurich, we’re focusing on skills to enable employees to understand, question, and challenge AI tools. We only regain human agency when we have the capability to challenge the technology. That’s how we drive innovation and productivity safely – through strong governance, global frameworks, and targeted training programmes.”

Dr Freeha Azmat, Reader, WMG, University of Warwick

“This report is a timely and necessary call to action. At WMG, we welcome its key findings, which reinforce what we see across industry and education every day: AI readiness is as much about human-centred skills, trust, and inclusion as it is about technology. From addressing digital poverty to embedding AI literacy in education and supporting SMEs with practical tools and training, the report underlines the need for policy grounded in real-world challenges. At WMG, we are committed to turning these insights into impact, building innovation ecosystems that align technological change with human needs and ensure no one is left behind in the AI-driven future.”

Sue Attewell, Head of AI, Jisc

“This report presents a persuasive argument for embedding AI literacy – tailored to the needs of the local economy – throughout the education system, while also promoting lifelong digital skills development. These are priorities that Jisc is proud to support. As AI continues to transform society, we must ensure that everyone, regardless of background or circumstance, has the opportunity to develop the skills needed to participate confidently and critically in an AI-enabled world”.

Notes to Editors

For more information, please contact James.Taloyr [at] policyconnect.org.uk (James[dot]Taylor[at]policyconnect[dot]org[dot]uk)

The report is sponsored by the Manchester Metropolitan University, ACCA Global, Microsoft UK, Zurich Insurance, and Jisc.

About Policy Connect

Policy Connect is a cross-party think tank. We specialise in supporting parliamentary groups, forums and commissions, delivering impactful policy research and event programmes and bringing together parliamentarians and government in collaboration with academia, business and civil society to help shape public policy in Westminster and Whitehall, so as to improve people’s lives.

Our work focusses on five key policy areas which are: Education & Skills; Industry, Technology & Innovation; Sustainability; Health; and Assistive & Accessible Technology.

We are a social enterprise and are funded by a combination of regular annual membership subscriptions and time-limited sponsorships. We are proud to be a Disability Confident and London Living Wage employer, and a member of Social Enterprise UK.