AI and digital skills shortage could impair UK automotive sector

Car industry and education must work together build skills and confidence, says Coventry University

The UK automotive sector faces a critical shortage of artificial intelligence (AI) and digital skills, which threaten its ability to compete globally and deliver the next generation of clean, connected vehicles. 

Commissioned by the Advanced Propulsion Centre UK (APC), the Coventry University study entitled Can AI fill the Automotive Skills Gaps? found that while enthusiasm for AI is strong, confidence and practical knowledge remain low. The research draws on interviews, workshops and surveys with industry leaders and workers, highlighting major challenges in recruiting, training and upskilling staff. 

Professor Richard Dashwood, Deputy Vice-Chancellor (Research) at Coventry University, said: “AI offers enormous potential to transform the UK automotive industry, but without the right skills in place, we risk being left behind. We need urgent, coordinated action to build a digitally confident, agile workforce.” 

Key findings of the report include: 

• Widespread shortages in software, AI and embedded systems expertise, alongside gaps in mechanical, electrical and power electronics engineering. 
• Low workforce confidence in AI, with most employees only “somewhat confident” in using it. Generative AI tools such as ChatGPT are the most recognised, but sector-specific applications are less understood. 
• Digital literacy gaps holding back adoption, even at a basic level such as working with data dashboards or coding logic. 
• Misalignment between education and industry, with many graduates lacking hands-on, workplace-ready skills. 
• Calls for more diversity and new entry routes to attract young people and career-changers into the sector. 

The report warns that without urgent intervention, the UK risks losing its global edge in automotive innovation, becoming over-reliant on overseas recruitment and missing opportunities to scale home-grown start-ups. 

Dan Fung, head of strategy at APC said: “AI presents a powerful opportunity to reshape the UK automotive workforce for the better. This report shows that with the right investment in skills and collaboration, we can unlock innovation, boost competitiveness and build a more inclusive, future-ready sector.” 

The report suggests that there is a need for greater investment in hands-on, workplace-relevant training and lifelong learning as well as adoption of cross-sector skills frameworks to help define and apply AI capabilities in automotive roles. 

There should also be a stronger collaboration between industry, academia and government to align training with real-world needs. 

Deepak Farmah, Director of Research and Innovation at Coventry University, said: “The sector is positive about AI but it needs practical training, clear frameworks and stronger collaboration to unlock its full benefits. By working together, we can secure the UK’s place as a leader in automotive innovation.”