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Lack Of AI Skills Slows Innovation

The most serious obstacle to digital transformation in companies is the mismatch between the skills of employees and the ever-increasing pace of innovation, concludes a global report by SoftwareOne.

Key Facts

  • Nearly two-thirds (62%) of survey respondents indicated that they do not have sufficient skills to work with artificial intelligence (AI), while at the same time, 41% of organizations are having difficulty finding qualified employees with AI experience and knowledge.
  • The lack of cloud skills has increased the workload of employees (62% of respondents) and has led to significant consequences, including burnout and increased turnover.
  • Nearly a quarter of global IT managers (23%) are considering leaving their jobs precisely because of this shortage, while at the same time, for 84% of companies, retaining IT talent is becoming a significant challenge.
  • Talent retention problems in companies are further exacerbated by team conflicts. 34% of the respondents point to the lack of skills to work with cloud technologies as a reason for tension between them and the direct manager, and 42% perceive it as a reason for conflicts in the team. One in five (22%) respondents said they did not feel comfortable asking for additional training to improve their skills.

Important Quote

“Rapid advances in AI and generative AI create exciting prospects for companies around the world, but when it comes to teams, organizations are sitting on a ticking time bomb if they don’t upskill and upskill their employees to realize AI’s potential,” says Brian Duffy, CEO of SoftwareOne.

What To Watch For

The research highlights the importance of prioritizing employees working more closely with advanced technology, which is proving key amid growing skills gaps in cloud and AI. This would significantly transform organizational dynamics, with 97% of companies planning to upskill their employees, the survey found.

“Our research shows that a large number of organizations are planning to enhance the capabilities of their IT teams to accelerate AI and cloud deployments. By putting people at the center and demonstrating the benefits of innovation for their roles in the organization, companies can build a supportive and positive environment that helps retain employees, increases productivity and makes work more meaningful.”

Tangent

The SoftwareOne Cloud Skills Report surveyed 500 senior management respondents in the UK, Benelux, North America and Australia, exploring how the cloud skills shortage is affecting IT teams and what plans are in place to address it in 2024

Short-Form Video Unleashed: Transforming The Living Room Experience

The Mobile Origins Of A Big-Screen Revolution

Short-form vertical videos, initially designed for smartphone viewing, are increasingly gaining traction on larger screens as viewing habits continue evolving across digital platforms. YouTube said audiences now watch more than 2 billion hours of Shorts content on televisions every month, highlighting the growing role of connected TV devices in short-form video consumption. The figures reflect a broader shift in how viewers engage with mobile-first formats beyond traditional smartphone environments.

Expanding Horizons In The Living Room

According to Kurt Wilms, television has become YouTube’s fastest-growing screen category. The company said integrated recommendations and search functions on smart TV interfaces are increasingly exposing users to Shorts content, even when viewers did not originally intend to watch short-form videos. As a result, living room viewing is becoming a larger part of YouTube’s overall content ecosystem.

Innovative Adjustments For Enhanced Engagement

To support this transition, YouTube has introduced interface changes designed specifically for larger screens. Features, including side-by-side comments and expanded layouts, aim to create a more interactive viewing experience while also improving engagement opportunities for creators. Sarah Ali said the updated viewing experience is intended to help creators expand audience reach across global markets and connected devices.

The Convergence Of Audio And Visual Media

Growth in living room consumption is also extending beyond short-form video into podcasting and long-form creator content. YouTube reported that viewers spent more than 700 million hours watching podcasts on living room devices during 2025, up from 400 million hours the previous year. At the same time, streaming platforms including Netflix are increasing investments in video podcasts and creator-led programming through partnerships with companies such as iHeartMedia, Barstool Sports and Spotify. The trend reflects a broader convergence between mobile-first content formats, streaming television and creator-driven media ecosystems.

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