Competing in the AI Era: Why Workforce Flexibility Is Now a Strategic Capability

AI is reshaping the skills businesses need to succeed. As organisations accelerate investment in artificial intelligence, employees with advanced digital expertise are becoming some of the most valuable talent in the global workforce.

But demand is rapidly outpacing supply. Our latest research, featured in the white paper Winning the Race for Tech Talent, highlights a fundamental shift in workforce strategy: organisations that embed hybrid working into their culture are better positioned to attract, retain, and develop the digital talent needed to compete in an AI-driven economy.

The advantage is no longer simply having access to technology. It is having access to the people who can unlock its potential.

The Growing Competition for AI and Digital Skills

AI is transforming every industry, increasing demand for professionals with expertise in areas such as artificial intelligence, data analytics, automation, and software development.

For businesses, this has created a new talent challenge.

IWG research found that:

· 67% of business leaders say attracting and retaining top tech talent is more competitive than ever before

· 54% report a shortage of candidates with the right skills

· 59% are focused on adding more technology and AI talent into their leadership teams

The organisations that succeed in this environment will be those that can build a workforce strategy around access to specialised skills, not just traditional hiring models.

As AI continues to evolve, securing the right talent is becoming a critical driver of innovation, productivity, and long-term business performance.

Hybrid Working Has Become a Talent Strategy

For years, flexible working was viewed primarily as an employee experience initiative.

Today, it has become a strategic advantage.

Highly skilled digital professionals are increasingly looking beyond compensation when choosing where to work. They are considering whether organisations provide the flexibility, autonomy, and working environments that allow them to perform at their best.

IWG’s research found that:

· 78% of business leaders believe organisations offering hybrid working have a clear advantage over those that do not

· 72% say flexible working is important when attracting candidates with top-tier digital skills

· Hybrid working is now the most common strategy organisations are using to compete for technology talent, ahead of competitive pay

This shift reflects a broader change in how businesses compete for people. The organisations that offer greater choice in where and how work happens can access wider talent pools and create stronger employee experiences.

Supporting the Leaders of Tomorrow

AI is not only changing the skills businesses need. It is also changing how future leaders are identified.

Technology expertise is increasingly becoming a leadership capability across industries, not just a specialist function.

IWG research shows:

· 83% of business leaders believe advanced technology expertise is a crucial advantage when considering candidates for senior roles

· 31% say technology expertise is as important as a university qualification when evaluating candidates

· 22% believe advanced technology skills are now valued significantly above formal qualifications

This shift is creating new pathways into leadership, with organisations increasingly recognising capability, adaptability, and technical expertise over traditional career timelines.

To support this next generation of leaders, businesses need operating models that encourage collaboration, continuous learning, and access to the right environments for innovation.

Building a More Flexible Workforce Model

The future of work is not defined by where employees sit. It is defined by how effectively organisations can bring together people, technology, and resources.

Hybrid working enables businesses to create more adaptable workforce models by allowing employees to work across a combination of headquarters, local flexible workspaces, and remote environments.

This approach helps organisations:

· Access talent beyond traditional office locations

· Support collaboration while maintaining flexibility

· Create working environments aligned with different types of tasks

· Build stronger connections between employees and the organisation

For businesses competing in the AI economy, flexibility is becoming an important part of building a workforce that can respond quickly to changing demands.

The Business Advantage of Flexible Models

Organisations embedding hybrid working into their culture are creating a stronger foundation for growth.

They are gaining greater access to specialised digital talent, more resilient workforce strategies, and an increased ability to adapt as business needs change.

The competitive advantage comes from creating an environment where talented people can do their best work, wherever they are most effective.

The Bottom Line

AI will continue to transform how organisations operate. But technology alone will not determine who succeeds.

The businesses that win will be those that combine AI adoption with the ability to attract, retain, and develop the people who bring that technology to life.

Hybrid working is no longer simply a workplace preference. It is a strategic capability that enables organisations to compete for the skills shaping the future of business.

As Mark Dixon, Founder of IWG, explains:

“Companies that do not embed hybrid working into their culture risk losing out on the vital tech talent that will ensure success in an AI-driven world.”

About International Workplace Group PLC

International Workplace Group (IWG) is the world’s leading platform for work enabling companies of all sizes to work more productively and profitably. We create personal,

financial, and strategic value for the most exciting companies and well-known organizations on the planet as well as individuals and the next generation of industry leaders. All of them harness the power of IWG’s platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes more than 4,000 locations across 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.

Our brands including Regus, Spaces, HQ and Signature serve millions of people, providing professional, inspiring and collaborative workspaces and all our digital services are available via the IWG app. For more information: Visit: https://www.iwgplc.com/en-gb

and for more information on partnering with International Workplace Group, see: https://www.iwgplc.com/develop-a-location