Competition for skilled AI workers influencing workplace decisions across Europe

Competition for AI talent is increasingly influencing workplace strategy as employers seek new ways to attract and retain highly skilled workers, according to new research from Colliers.

Drawing on data from the European Commission, AI Clusters in Europe: What it means for office demand, finds that 75 per cent of European employers struggle to recruit AI-related talent, despite the EU’s AI workforce having more than doubled between 2016 and 2023.

As businesses compete for scarce skills, workplace quality, location and employee experience are becoming more important factors in recruitment and retention strategies. AI companies consistently prioritise access to universities, research institutions, technology networks and highly skilled labour markets when choosing where to locate and expand.

Damian Harrington, Head of Research, Global Capital Markets & EMEA at Colliers, said: “Europe has the research base, industrial depth and talent needed to play a significant role in the global AI economy. The immediate challenge is whether it can develop that talent quickly enough and create the conditions in which skilled people and AI businesses can succeed.”

The growth of AI clusters is reinforcing demand for high-quality workplaces in locations that combine talent access with strong connectivity and business ecosystems. London, Paris and Berlin are emerging as Europe’s leading AI clusters, while cities including Munich, Zürich, Amsterdam, Dublin, Stockholm, Warsaw, Barcelona and Helsinki are developing significant AI ecosystems.

Colliers finds that physical workplaces remain important even where organisations operate hybrid models. Offices continue to support research collaboration, product development, recruitment, training and culture-building.

Karin Witalis, Associate Director, Commercial Real Estate, EMEA Research at Colliers, added: “Talent creates the link between research, commercialisation and business growth. Universities and research institutions do more than supply graduates. They anchor the wider AI ecosystem, bringing together skilled people, startups, investors and established technology companies. That helps explain why AI activity is highly concentrated geographically.”

The report finds that the strongest workplaces will need to support both focused individual work and intensive collaboration across teams ranging from research and engineering to product, legal and AI governance. High-quality offices in accessible, well-connected locations can therefore play a role in helping organisations attract and retain scarce talent.