How is AI impacting tech contractors today?
The rapid rise of accessible Artificial Intelligence (AI) tools is undoubtedly impacting professionals across the world of work, and technology contractors are no exception. But how are day rates changing as a result of these new technologies? Are organisations optimistic about, and open to invest in, AI? How are these digital advancements shaping the most in-demand skills? And are employers and contractors alike ready to take on the upskilling challenge that AI requires?
In this article, I explore some of the key findings from our Tech Contractor Day Rate 2024 guide, based on insights from over 920 technology contractors and employers across the UK, to uncover how AI is shaping the tech contracting world today.
Day rates rise for IA professionals
According to our research, although less employers increased day rates for contractors over the last year (55%) compared to the year before (61%), contractors working in Intelligent Automation (IA) roles received the highest day rate increase last year, rising by a significant average of 12%.
As more organisations up their investment in their machine learning capabilities, the pay employers are prepared to offer contractors in this field must reflect the ever-growing demand for such specialist skillsets. With the speed at which new technologies are being adopted, it’s no surprise that IA roles took the lead in terms of the best average increase across the UK market and goes to show that AI has the potential to increase exciting and lucrative opportunities for tech contractors.
More employers investing in AI
Investment in AI is continuing at a relative pace, as over a third (35%) of organisations are currently investing in AI tools and 37% of employers plan on doing so in the future. The top reasons organisations are investing in AI mirror the research findings from last year: to increase productivity (36%), improve customer service (29%) and develop new revenue streams (14%).
Our research demonstrates that attitudes towards AI have shifted for the better from a business perspective, with 8 in 10 (82%) employers saying they believe AI will positively impact their organisation in the next five years, compared to less than two thirds (65%) who said the same the year before. It’s promising to see such optimism amongst employers today, many of whom are eager to invest their time and money into taking advantage of AI. However, it will take more than just financial investment to truly get the most out of AI and keep up with the pace of change.
Upskilling is crucial for effective AI adoption
As the presence of AI is only set to grow, the importance of upskilling in order to adapt in today’s digital age should not be underestimated. As Antony Walker, Deputy CEO of techUK, put it during our recent webinar to launch our Contractor Day Rate report: “Whilst there’s lots of talks of AI being a technology race, it’s every bit as much a skills and talent race.”
Antony adds: “Driving technological change through an organisation is a difficult and complicated thing to do; ultimately, your success will depend on the abilities and capabilities of the talent and skills that you can draw upon, whether they’re in your permanent workforce or part of your contractor, supplier base. Over the next few years, the winners that are going to emerge are the ones who get that right and work out how to build the teams they need to drive the change and take advantage of AI. Whilst I can understand a lot of the anxiety that is out there in terms of what AI might mean for jobs, including in the IT contractor base, ultimately the demand for people who can help to enable technological change and innovation across businesses will be enormous.”
Upskilling is all about making sure your knowledge and tools are up to date, or else risk getting left behind in an ever evolving and competitive market. However, the responsibility lies not only with individual contractors to be committed to continually build on their skillset, but with organisations to ensure they support both their permanent workers to upskill and the contractor base they rely on.
One of the biggest challenges we are seeing in the market is that the AI technologies have come before the skills have been developed, so contractors and employers are tasked with navigating how to adapt, understand and learn the new skills that are necessary to work alongside AI. We’ve witnessed an understandable degree of reservation from the contractor population. Whilst close to half (49%) of tech contractors believe AI will positively impact their role in the next five years, 15% believe it will have a negative impact on their profession and over a third (36%) express uncertainty in terms of how AI might impact their role in the long run. Perhaps their apprehension stems from a fear that they lack the skillset necessary to utilise AI and to remain an asset to their organisation. Therefore, upskilling is vital for contractors to become empowered and confident in the face of these new technologies, to support with their day-to-day responsibilities and stretch the limitations of their role. Our research shows that three quarters (75%) of contractors acknowledge the importance of AI upskilling and plan to upskill in this area in the future.
Both soft and technical skills essential for contractor success
Last year, 87% of organisations faced skills shortages, according to our research, but what are the skills employers need most today? When it comes to technical skills, the top five most in-demand specialist skills are cloud (48%), IT infrastructure (37%), architecture (35%), data and analytics (35%) and projects and change management (33%) - all fundamental areas in helping to support the successful use of AI tools and technologies for the future.
In terms of soft skills, which are just as important for temporary staff as they are for permanent professionals, the top five most important ones are an ability to adopt change (55%), communication and interpersonal skills (55%), critical thinking (48%), problem solving (48%) and flexibility and adaptability (40%). These core skills will prove imperative for contractors to thrive throughout their career, particularly as the appetite around implementing AI increases, strong human-centric skills will be irreplaceable.
Final thoughts
Ultimately, advancements in AI and the development of skills should go hand in hand. Employers and contractors who respond to this skills race will certainly get a head start when it comes to staying on top of technological change and getting the best out of AI. Despite concerns that AI will threaten and even replace jobs, as long as employers and contractors remain attuned to the risks, as well as the benefits, associated with AI tools, AI has the potential to create millions of jobs and exciting opportunities for tech professionals and businesses going forward.
Authors
James Hallahan
James is a a hands on, strategic thinker, sales leader, and Board Director, with over 25 years experience in the staffing and professional services industry, having worked in the capacity as CEO, MD, Director and COO roles to build both market leading brands and businesses at scale, both in the UK&I and Internationally, for both market leading and challenger brands.