Artificial Intelligence is moving fast. Just a couple of years ago, AI could safely be called an emerging trend. Now, it’s reshaping how companies operate, compete, and grow. For recruitment business owners, this shift represents an exciting opportunity to lead in a high-growth, high-value market – but you’ve got to move fast.

The UK’s AI sector is now valued at £72 billion, the largest in Europe and the third globally, trailing only the United States and China. AI companies in the UK now number more than 3,700, employing over 60,000 people in AI-specific roles.

Over the past decade, job postings requiring AI-related skills have grown 3.6 times faster than all other job types in the UK. According to PwC’s 2024 Global AI Jobs Barometer, for every one such posting in 2012, there were seven in 2023.

The scope of this expansion goes far beyond machine learning specialists. From financial analysts and product managers to customer service and operations teams, AI is now woven into the core of business functions. Sectors with greater AI exposure are seeing productivity growth rates 4.8 times higher than those without it, which explains why so many companies are focused on hiring people with AI skills (PwC).

Skills shortages

However, an AI-skilled workforce is not easy to find. A dramatic surge in demand for AI skills has created the UK’s most severe and fastest-growing tech skills shortage in more than 15 years, according to a new report.

AI has leapt from fifth to the most in-demand tech skill in just 18 months. Half (52%) of UK tech leaders said they were struggling to fill AI-related roles, up from just 20% last year.

This shortage has already created a strong pricing dynamic, with companies offering a 23% average wage premium for roles requiring AI skills.

Where are the AI jobs?

Geographically, the demand is not confined to London, though the capital remains a key epicentre, hosting over 5,250 AI job postings in the first half of 2024. Other regional hubs are rapidly developing. Glasgow saw nearly 914 AI-related openings, Cambridge reported 712, and Manchester, Bristol, and Birmingham had 691, 632, and 490 respectively.

What are employers looking for?

The hike in demand is not without disruption. Traditional graduate hiring is shrinking, with job listings aimed at university leavers falling by around 33% in the past year. Instead of defaulting to entry-level generalists, companies are increasingly seeking professionals with specific AI-related skills, regardless of age, background, or formal qualifications.

Employers are embracing this change: between 2018 and 2024, degree requirements in UK AI job postings declined by 15%, while demand for AI-related roles rose by 21%. This presents a clear opportunity for recruiters to move beyond traditional CV filters and source candidates on attributes other than academic credentials. It’s interesting to note that 97% of IT positions paying over £100,000 annually require AI skills.

What type of roles are available?

The types of roles being created are also evolving.

Machine learning engineers remain in high demand with salaries ranging from £55,000 to £130,000. Prompt engineers, who craft effective natural language inputs for generative AI models, are now earning £45,000 to £90,000 or more, particularly in creative, marketing, and legal sectors. AI product managers, responsible for integrating AI capabilities into customer-facing tools, typically command between £70,000 and £110,000. Meanwhile, AI leads and AI policy analysts, roles that didn’t exist a few years ago, are becoming increasingly important, offering salaries up to £100,000.

A growing sector

And this is just the beginning. Projections from PwC estimate that the UK could see 7 million new AI-related jobs by 2037, with AI boosting GDP by 5 to 14% by 2050. Already, AI has become central to UK industrial strategy, with initiatives from the government targeting the training of 7.5 million workers in AI competencies by 2030.

What this means to recruiters

All of this means that recruitment businesses with the foresight to build expertise in AI hiring today will be in prime position to reap the benefits over the next decade. So what does this mean for you, as a recruitment agency leader?

It means there is an enormous untapped market waiting to be served, and no clear category leaders yet. It means you don’t need to compete on volume or fees. Instead, you can offer a premium, consultative service to clients who are desperate for help navigating the AI hiring landscape.

How we can help

AI is transforming the world of work – and recruitment – and we are here to help you gear up and take advantage. With our outsourcing solutions, you can respond to this new opportunity quickly and cost-effectively. Click below to book a consultation today and explore how we can help your agency raise the bar when it comes to AI recruitment.