This blog was written by Ruth Joseph – SDN Mesma Group Partnerships Specialist
Artificial intelligence is no longer a future challenge for the skills system — it is already reshaping how organisations operate and how learners prepare for work. As the North East positions itself as an AI Growth Zone, the real question is not whether the region can develop technical capability, but whether it can build the confidence and inclusion needed to ensure opportunity is shared. From digital literacy and diversity to employer clarity and ethical guardrails, recent regional discussions highlight a defining truth: AI will shape the North East’s economy — but only deliberate, collaborative action will determine who benefits.
Having recently returned to the North East after nearly 30 years away, I’ve been struck by how quickly the region is positioning itself at the centre of the AI conversation. What once felt like a distant technological shift is now an immediate economic and social reality.
That was evident at the Generation Northeast conference hosted at Newcastle College University Centre earlier this year. The tone was not speculative. The Northeast — now designated an AI Growth Zone— is already in the thick of it.
The question is no longer whether AI will influence our skills system and labour market. It is whether we will shape how that influence unfolds.
Gerard Garvey, Executive Principal at NCG, captured the scale of the moment by comparing AI to the industrial revolution — transformative, unsettling and full of unknowns. But he was equally clear about the region’s most pressing barrier:
“One of our biggest regional challenges is foundation digital literacy. Government reports show clearly that low digital confidence remains one of the structural barriers preventing widespread AI upskilling.” — Gerard Garvey, Executive Principal, NCG
Confidence, not capability, may be the defining skills issue of this decade.
Low digital confidence surfaced repeatedly — among learners and professionals alike. Without strong foundations, advanced AI pathways remain inaccessible. Embedding AI literacy into everyday practice, including staff development, reflects an understanding that confidence grows through doing rather than observing.
The growth opportunity is significant. But growth without inclusion is not success.
Jon Ridley, Principal of Newcastle College, made that risk explicit: “We know that the tech sector has longstanding challenges around diversity. For example, women make up just 21% of tech teams. What we’ve got to watch is that the risk is AI could widen these inequalities.”
If entry routes, pathways and partnerships are not intentionally inclusive from the outset, existing gender and socioeconomic gaps risk widening rather than narrowing.
Employer insight also challenged conventional assumptions about “AI skills”.
In a session led by Reed, it was noted that over half of employers are struggling to recruit into AI roles. Yet many vacancies remain open not because of a lack of interest, but because expectations are unclear.
Many discussions agreed that AI itself is not a skill. Knowing when and how to apply it is.
Mark Jose, Hedgehog Lab, reinforced this perspective, positioning AI as simply the latest tool within software development. The focus should be on how to apply it across occupations rather than treat it as an isolated specialism.
For providers, this has significant implications. Evidencing capability — problem solving, critical thinking and responsible application — may matter more than chasing credentials.
The conversations did not shy away from risk.
Heather Smith from Accenture emphasised the importance of guardrails in both policy and practice. AI tools can reduce anxiety for young people entering work, she suggested, but only when deployed responsibly. Misinformation, bias and lack of transparency remain genuine concerns.
As one speaker summarised: “Digital access is more than access to broadband. It’s about confidence, skills and support.”
That distinction is critical. Parts of the North East continue to experience high levels of digital exclusion. Devices and connectivity cannot be assumed. Encouragingly, some employers are already stepping forward to provide hardware directly to learners — recognising that access underpins participation.
Perhaps the strongest message was this: AI must be shaped through a hyperlocal lens.
The North East has distinct industries, communities and challenges. One-size-fits-all solutions risk missing that reality. Collaborative partnerships between colleges, universities and employers will determine whether AI becomes a driver of regeneration or another uneven wave of disruption.
The region has momentum. It has institutional strength. It has employers ready to engage.
But confidence must come before capability. Inclusion must precede acceleration.
AI will shape the North East’s future. The responsibility now is to ensure it strengthens opportunity rather than deepens inequality.