Table of contents

TABLE OF TIPS

  • Guides
  • Admin
  • 5483 views
  • 7 minutes
  • Jun 04 2025

Solve AI Talent Shortages with Upskilling and Strategic Outsourcing

Table of contents

TABLE OF TIPS

Solve AI Talent Shortages with Upskilling and Strategic Outsourcing

Every company today feels the push to leverage artificial intelligence to improve products, boost efficiency, and stay competitive. But there’s a catch: finding and retaining top AI talent is harder than ever, which lead to AI Talent Shortages.

AI talent shortages have become a serious bottleneck, delaying projects and inflating costs. High turnover, a limited talent pool, and intense competition from tech giants make it challenging for companies to build the teams they need to drive innovation.

There’s no quick fix, but there is a proven path forward. Combining upskilling and strategic outsourcing can help companies overcome AI talent shortages, keep projects on schedule, and deliver real value to customers.

1. The Scope of the AI Talent Shortage

The numbers tell a clear story. According to a recent report by the World Economic Forum, demand for AI and machine learning specialists has grown by more than 70% in the past five years, while the supply of qualified candidates has struggled to keep up.

A McKinsey study found that nearly 70% of companies investing in AI report at least moderate AI talent shortages. This gap leads to higher salaries and longer hiring times, with some positions remaining unfilled for months.

The consequences are real. When companies can’t hire the AI specialists they need, innovation slows down. Projects miss deadlines, product quality suffers, and competitors get ahead. For example, a financial services firm recently delayed launching its AI-powered fraud detection system by six months because it couldn’t find enough skilled engineers. That delay cost them market share and customer trust.

2. Upskilling Your Existing Team

One of the most practical solutions to AI talent shortages is to invest in your current team’s skills. Upskilling means equipping your existing software engineers, data analysts, and domain experts with the knowledge and tools they need to contribute to AI initiatives.

For example, a company might train their backend engineers in Python and popular machine learning libraries like TensorFlow or PyTorch. Data analysts could learn to build predictive models or work with cloud-based AI services.

Upskilling offers more than just new technical capabilities. It strengthens team loyalty and morale, reduces turnover, and taps into the domain knowledge that your existing team already has. Your current employees know your customers, your systems, and your business goals.

Companies can implement upskilling through a mix of approaches:

  • Hosting internal workshops and AI bootcamps
  • Offering online courses from platforms like Coursera, Udacity, or edX
  • Partnering with universities or training providers for customized programs
  • Providing mentoring and coaching to support continuous learning
  • When done right, upskilling transforms your team into a more versatile, AI-ready workforce that can tackle new challenges confidently.

Learn more: Evaluate AI Talent Gaps – What Businesses Should Know

3. Strategic Outsourcing as a Talent Solution

While upskilling builds internal capacity, sometimes you need specialized talent now. That’s where strategic outsourcing comes in. Strategic outsourcing in AI means partnering with external firms, agencies, or consultants who bring immediate expertise and capacity to your projects.

Outsourcing is particularly effective for projects with tight deadlines or specialized needs, such as building a new recommendation engine or developing a computer vision application. These experts can plug into your team quickly, bringing their experience and knowledge without the delays of recruiting full-time staff.

For instance, a logistics company that needed to optimize its delivery routes used an external AI consulting firm to develop a custom route optimization engine. By outsourcing, they got access to top-tier AI talent and delivered the project three months ahead of schedule.

Benefits of strategic outsourcing include:

  • Faster project kickoff and execution
  • Access to specialists with deep expertise in AI/ML technologies
  • Flexibility to scale teams up or down as project needs change
  • Lower risk compared to hiring permanent employees for short-term needs

4. The Power of Combining Both Approaches

Upskilling and strategic outsourcing are not mutually exclusive. In fact, combining both can be the most effective way to solve AI talent shortages while building long-term strength.

Imagine you’re launching an AI-powered product and need quick results. You can bring in an outsourced AI team to develop the initial version, while your internal team works alongside them to learn the tools, frameworks, and best practices. Once the product is live, your team is equipped to maintain and expand it, reducing reliance on external partners over time.

This blended approach ensures that you:

  • Meet immediate project deadlines with external support
  • Build internal knowledge and reduce long-term risk
  • Foster collaboration between external experts and your team
  • Retain critical knowledge within your organization

We’ve seen this approach work wonders. A retail client of ours needed to deploy an AI-driven personalization engine to boost sales. They partnered with our consultants to develop the initial system while training their internal team on the underlying technology. Within a year, the client’s team was able to manage and enhance the system independently, driving sustained business growth.

You may enjoy: Can the US Keep Up with AI Demand as Talent Shortages Loom Large?

5. How We Help Companies Solve AI Talent Challenges

At ITC Group, we specialize in helping companies solve AI talent shortages through a mix of upskilling and strategic outsourcing. Our team of experts brings years of experience in building, deploying, and maintaining AI systems across industries.

We offer customized training programs designed to build your team’s AI skills, from foundational machine learning concepts to advanced topics like deep learning and AI model deployment. Our workshops and mentorship programs fit your team’s schedule and learning style.

For immediate project needs, our managed AI teams and on-demand specialists can integrate with your in-house team, providing the expertise you need to get projects off the ground quickly and successfully. We work closely with your leaders to ensure knowledge transfer and sustainable growth, so you’re not left dependent on external help forever.

Conclusion

AI talent shortages are real, but they don’t have to hold your business back. By investing in upskilling and leveraging strategic outsourcing, you can build the AI capabilities you need to deliver great products, innovate faster, and stay competitive.

The AI race is only heating up, and companies that act now will be the ones leading the pack tomorrow.

If you’re ready to tackle your AI talent challenges, contact our team to discuss how upskilling and strategic outsourcing can work for you. Let’s build your AI success story together.