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CARY, N.C.,Sept. 23, 2022 Urgent action is needed to tackle an artificial intelligence (AI)skills crisis that is already stifling US productivity and innovation, new research has found.Published by analytics leader SAS,How to Solve the Data Science Skills Shortageis a report based on a survey of decision makers from major US firms spanning nine sectors, including banking, insurance, government and retail.

Fortune Business Insights projects the global artificial intelligence market to grow from$387 billionin 2022 to nearly$1.4 trillionby 2029.1Correspondingly, AI andmachine learningare top investment priorities over the next one to two years, according to 43% of SAS survey respondents. That is well ahead of data technology stalwarts such as data visualization (25%), data analytics (22%) and big data (17%).

But there is a massive red flag: Sixty-three percent of respondents also claim their largest skills shortages are in AI and machine learning.

No Easy Answers on How to Bridge the Skills Gap

Without the talent, these increased investments in artificial intelligence and machine learning could be wasted, leading to financial losses and unrealized opportunities. Survey respondents are planning different tacks to address skills gaps, but they cite several challenges.

Three-quarters of respondents want to train and upskill existing staff, compared to 64% who want to recruit new talent. Training and upskilling may prove more cost-effective compared to hiring and using contractors but the study highlighted barriers such as lack of time and motivation, and belief that senior management may be worried about people taking their skills elsewhere.

Given how fierce the war for talent has become, salary is another sticking point. Companies may have little choice but to pay ever-higher salaries, and recruitment and contractor costs to secure the skills they need. The estimated total pay for a data scientist now stands at around$122,000in the US2, and this may not be sustainable for many organizations.

Universities Still Important, but Companies Looking Beyond Degrees

An April study by Indeed found that 67% of large companies surveyed would consider dropping their degree requirements.3The findings of theHow to Solve the Data Science Skills Shortagereport mirror this trend.

Respondents largely want to work with academic institutions to recruit data talent directly, but understand that relying on graduates alone will not fill vacancies fast enough. And what they are seeking from potential hires is not necessarily a four-year degree. The survey indicates:

Building Data Science Talent Now

Dr.Sally Eaves, AI expert, author and speaker who contributed to theHow to Solve the Data Science Skills Shortagereport, said: Businesses cannot rely solely on graduates or continue the poaching merry-go-round. The good news is employers have already begun to recognize the value of on-the-job training and other certifications as stated in the report.

The report outlines three recommendations to address thedata science skillsgap:

There is no single approach but a combination of expanding mid-career training including to those currently in non-technology roles, equipping people with the right tools for the job and growing the data science community will start to see that skills gap narrow, said Eaves. Together, they could significantly increase the supply of talent, and create good-quality, satisfying jobs that benefit individuals, organizations and the wider economy.

Learn more about how SAS can help an organization buildanalytics skillsto gain a competitive edge.

Methodology

SAScommissioned a survey of 72 US-based decision-makers in organizations spanning nine sectors, including banking, insurance, government and retail. Each worked for organizations with more than 1,000 employees; some had more than 100,000. The vast majority were in technical roles, including data science and data analytics, and just under a quarter were in HR and talent management. The survey was also carried out in the UK andIreland, and conducted by ColemanParkes.

About SAS

SASis the leader in analytics. Through innovative software and services,SASempowers and inspires customers around the world to transform data into intelligence.SASgives you THE POWER TO KNOW.

Notes

1https://www.fortunebusinessinsights.com/industry-reports/artificial-intelligence-market-1001142https://www.glassdoor.com/Salaries/data-scientist-salary-SRCH_KO0,14.htm3https://www.indeed.com/lead/report-how-covid-19-pandemic-changed-recruiting?hl=en&co=US

Source: SAS

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AI Skills Crisis May Lead to Wasted Investments and Stifled Innovation: SAS - Datanami