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UK automotive sector faces AI skills crunch

Posted on 09 Oct 2025. Edited by: John Hunter. Read 158 times.
UK automotive sector faces AI skills crunchProfessor Richard Dashwood, deputy vice-chancellor (Research) at Coventry University

A new Coventry University report, commissioned by the Advanced Propulsion Centre UK (APC), has raised serious concerns about the UK automotive sector’s ability to embrace artificial intelligence (AI) and digital technologies. The study, titled Can AI fill the Automotive Skills Gaps? highlights a critical shortage of AI and software expertise, which could undermine the industry’s ability to deliver clean, connected vehicles and compete globally.

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.'

Drawing on interviews, workshops and surveys with industry leaders and employees, the report identifies widespread gaps in software, embedded systems, and power electronics engineering. It also reveals low confidence among workers in using AI tools, with generative platforms like ChatGPT being the most recognised, while sector-specific applications remain poorly understood.

The report says that digital literacy gaps are holding back adoption, even at a basic level such as working with data dashboards or coding logic. It also points to a misalignment between education and industry needs, with many graduates lacking hands-on, workplace-ready skills.

Powerful opportunity

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 calls for greater investment in practical training, lifelong learning, and cross-sector skills frameworks to define and apply AI capabilities in automotive roles. It also urges stronger collaboration between industry, academia and government to ensure training aligns with real-world needs.

Deepak Farmah, director of research and innovation at Coventry University, concluded: “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.”

The full report is available via Coventry University and the Advanced Propulsion Centre UK here.