Posted on April 28, 2025
The Urgent Need for Advanced Digital Skills
In today’s tech-driven marketplace, advanced digital skills are no longer optional – they are a critical driver of innovation and competitive advantage. Organisations across every sector now rely on technologies like artificial intelligence (AI), data analytics, cloud computing and more to streamline operations and deliver new services.
Consequently, employees with expertise in these advanced domains are in high demand for their ability to harness technology and drive organisational success. European business leaders increasingly recognise that without a workforce skilled in AI, data science, cybersecurity, Internet of Things (IoT), cloud, blockchain, programming, and even quantum computing, their companies risk falling behind in the digital economy.
Yet despite this clear need, according to the State of the Digital Decade 2024 report, Europe faces a significant digital skills gap. The EU has set ambitious targets for 2030 – aiming for 80% of adults to have basic digital skills and 20 million ICT specialists in the workforce – but current trends fall short.
“It’s imperative that we learn digital skills and understand how these technologies can help us grow and develop our organisations and our roles.”
Carmel Somers, Technology Ireland ICT Skillnet
As of 2024, only about 55% of Europeans have basic digital skills, and at the current pace, the ICT workforce will reach just 12 million instead of 20 million. This shortage of tech expertise is already affecting businesses. A recent EU report found that around 55% of enterprises that tried to hire ICT specialists had difficulty filling those roles. In other words, more than half of European companies cannot find the advanced digital talent they need.
These talent gaps have real business impacts. When companies lack skilled AI engineers, data analysts or cybersecurity experts, projects get delayed and innovation stalls. EU businesses report that digital skills shortages lead to:
- 46% decrease in productivity
- 43% drop in customer engagement
- 32% loss of contracts
In the race for digital leadership, such deficits are perilous. Indeed, according to the World Economic Forum’s Future of Jobs Report 2025, Europe still trails the US and China in advanced technology adoption, adding pressure on firms to catch up through rapid upskilling. The message is urgent and clear: closing the digital skills gap is not just a social objective but a business survival imperative.
To understand which capabilities matter most, the Digital4Business market needs analysis identified eight key domains of advanced digital skills that European companies are seeking: artificial intelligence, data science, cybersecurity, Internet of Things (IoT), cloud computing, blockchain, programming, and quantum computing. Each of these domains addresses a critical aspect of modern business technology. Below, we summarise why skills in each area are essential for business success in Europe.
Artificial Intelligence and Data Science: Driving Innovation and Insight
Artificial intelligence (AI) and data science capabilities enable businesses to transform raw data into actionable insight and intelligent automation. With AI, companies can automate routine processes, forecast trends, and personalise customer experiences at scale. Advanced analytics and data science, meanwhile, help organisations make evidence-based decisions, optimise operations, and discover new market opportunities from big data. It’s no surprise that AI and data skills top the list of in-demand expertise across Europe.
Recognising their importance, the EU’s Digital Decade goals call for 75% of enterprises to use AI and big data analytics by 2030. Businesses that cultivate these skills can innovate faster – using techniques like machine learning to develop smarter products and services – and gain a competitive edge. In short, mastering AI and data science is now fundamental to staying relevant and ahead of the curve in the digital economy.
Cybersecurity: Safeguarding Assets and Trust
As businesses digitalise, cyber threats have grown in tandem. Cybersecurity skills are essential to protecting a company’s data, operations and reputation. A single cyber breach can cost millions in damages, disrupt business continuity, and erode customer trust. Firms with strong cybersecurity talent can pre-empt such disasters by securing networks, guarding sensitive data, and ensuring compliance with data protection laws.
The Digital4Business analysis confirms that cybersecurity is a core advanced skill needed across EU countries, underlining its importance. For business leaders, investing in cybersecurity expertise is non-negotiable: without it, even the most technologically advanced organisation is vulnerable. Companies that build robust cyber defences and cyber-aware cultures can confidently embrace new digital tools and innovations, knowing their critical assets and customer data are safeguarded. In an era of GDPR and constant hacking attempts, cybersecurity know-how underpins the trust and resilience every digital business depends on.
Cloud Computing and IoT: Enabling Connectivity and Scalability
Modern businesses depend on cloud computing and the Internet of Things as the backbone of their digital operations. Cloud platforms provide on-demand computing power, data storage and software services over the internet, allowing firms to scale their IT resources flexibly and cost-effectively. This empowers everything from supporting remote work to deploying customer-facing applications globally.
Meanwhile, IoT devices – sensors, machines, and everyday objects connected to the internet – generate real-time data and enable automation in physical operations. In manufacturing, logistics, agriculture and smart cities, IoT solutions (paired with cloud analytics) can optimise supply chains, enable predictive maintenance, and unlock efficiency gains that were previously unattainable.
However, leveraging cloud and IoT technologies requires advanced skills in areas like cloud architecture, data integration, and IoT systems engineering. European companies that invest in these skills can become far more agile and data-driven, using cloud-based analytics and IoT data streams to inform decisions. They can create new service models (for example, IoT-enabled products with subscription services) and streamline operations through connectivity.
Those without cloud and IoT expertise, on the other hand, risk falling behind more connected competitors in terms of efficiency, customer insight, and innovation capacity. In summary, cloud and IoT skills enable a business to be scalable, flexible, and informed in real time – all crucial traits for success in the digital age.
Programming and Software Development: The Foundation of Digital Solutions
Amid the excitement about cutting-edge tech, fundamental programming and software development skills remain a cornerstone of digital innovation. Proficiency in programming – the ability to write and understand code – allows businesses to build, customise, and maintain the software that powers all other digital initiatives. From developing a company’s own data analytics dashboards to automating internal workflows, skilled programmers turn ideas into reality. In fact, high-level coding talent (for example, proficiency in Python) is identified as a key advanced skill area in its own right by the Digital4Business market needs analysis.
This reflects that without people who can actually design and implement software, organisations cannot fully leverage AI algorithms, data pipelines, cloud architectures or any digital tools. Even in non-tech sectors, having team members with programming know-how means the business can adapt off-the-shelf software, create custom solutions for unique needs, and integrate new technologies faster. For European companies, cultivating programming expertise is part of future-proofing – it gives them the in-house capability to innovate continuously, rather than being entirely dependent on external vendors. In essence, coding is the common language of the digital world: companies fluent in it can build the future, while those that aren’t will struggle to keep up as technology evolves.
Blockchain and Quantum Computing: Preparing for the Next Frontier
Some advanced skills may seem futuristic today but are rapidly becoming relevant. Blockchain expertise, for example, is increasingly valuable as distributed ledger technology moves beyond cryptocurrencies into mainstream business. Blockchain can enable more secure and transparent transactions, supply chain traceability, smart contracts, and new decentralised business models. Companies equipped with blockchain skills can streamline multi-party processes (like international trade finance or provenance tracking) with greater trust and automation. Many European industries – from finance to agriculture – are exploring blockchain solutions, making knowledgeable professionals an asset for staying ahead in implementing these innovations.
Likewise, while quantum computing is still an emerging field, the skills to understand and experiment with quantum technologies are strategic for long-term competitiveness. Quantum computers have the potential to solve complex problems far beyond the reach of classical computing, which could revolutionise fields such as cryptography, materials science, and logistics optimization. The EU is already investing heavily in developing a European quantum ecosystem and recognises quantum technology as a key area driving future demand for advanced digital skills.
Forward-looking businesses are beginning to prepare for a quantum future – for example, by training staff in quantum basics and quantum-safe cryptography – so they won’t be caught off guard as the technology matures. While most companies won’t use quantum computers in the immediate term, having talent versed in quantum concepts can position a firm as an early mover when practical applications become viable.
Building skills in emerging areas like blockchain and quantum is about anticipating tomorrow’s opportunities and challenges. European businesses that encourage learning in these domains will be better positioned to exploit new breakthroughs (and mitigate risks, such as quantum threats to cybersecurity) – giving them a strategic edge in the coming decade.
“It’s becoming essential for leaders to understand digital skills and build their teams using these technologies. Organisations that adopt these tools will be the ones with sustained growth”
Carmel Somers, Technology Ireland ICT Skillnet
The Digital4Business Programme: Bridging the Skills Gap
Addressing the advanced digital skills gap will require a proactive investment in education and training. This is where initiatives like the Digital4Business Joint Professional Master’s Degree become so vital. Digital4Business is a European enterprise-led Master’s programme, co-created by companies and universities, that aims to minimise the skills gap in advanced digital technologies. In particular, it focuses on upskilling business leaders, professionals and graduates in the very domains discussed above – AI, data analytics, cloud, IoT, cybersecurity, blockchain, programming, and more – through a flexible, fully online curriculum. By aligning its content with industry-identified needs, the programme ensures that participants gain practical, cutting-edge expertise that can be applied directly to their organisations.
Not only does upskilling through programmes like Digital4Business equip individuals with critical competencies, but it also yields broader economic benefits. As the Digital4Business research found, investing in advanced digital skills leads to new job opportunities, increased productivity, and overall economic growth.
For businesses, this translates into tangible returns: a workforce with advanced digital skills for business can drive innovation, implement efficiencies, and create new value streams, strengthening the company’s performance. In essence, initiatives such as the Digital4Business Master’s programme are building the talent pipeline that European industry urgently needs. By participating in and supporting these efforts, senior business leaders can ensure their companies have the expertise to thrive in the digital era. The organisations that act now to cultivate advanced digital skills will be the ones to lead in innovation and competitiveness in Europe’s fast-evolving marketplace.
Discover more about the Digital4Business flexible online Master’s programme here.