Applications from overseas tech workers seeking UK visas have declined for a third straight year, raising fresh doubts about Britain’s ability to attract global AI talent.
Freedom of Information data obtained by consulting firm RSM UK shows skilled tech worker applications fell seven per cent to 34,936 in 2025, down from 37,376 the previous year.
The total number of applications has now dropped by more than a third since peaking at 53,729 in 2022, representing a significant and sustained decline in overseas interest.
AI minister Kanishka Narayan has repeatedly called for easier visa access for top engineers and faster routes for highly skilled workers as Britain seeks to compete internationally.
Ben Bilsland, partner and head of technology industry at RSM UK, warned that the talent gap poses a serious long-term risk to economic growth across the sector.
“Talent shortage remains one of the biggest challenges in the tech industry and risks holding back growth, both short-term and in the long run, without some form of intervention,” Bilsland said.
“To be a genuine competitor in the global tech race, the UK needs to be ahead of the game. That starts with having the right people with the right skills,” he added.
The figures arrive as tech businesses are already grappling with higher employment costs following changes to taxation and the introduction of the Employment Rights Act.
Bilsland acknowledged that some companies would turn to AI to drive efficiencies, but stressed that skilled workers remain essential to deploying AI safely and at scale.
The government has taken some steps to address the issue, introducing a visa reimbursement scheme allowing eligible scale-ups in digital technology and AI to reclaim up to £25,000 a year in immigration costs.
Ministers have also expanded the Global Talent visa, enabling more businesses and research organisations to endorse specialist applicants through a broader set of approved routes.
Despite those measures, industry figures argue that visa costs and complexity continue to place Britain at a competitive disadvantage against international rivals in the race for tech talent.
Narayan has made attracting international talent a central part of the government’s AI strategy, arguing that Britain must do more to help companies “scale at home” rather than lose engineers overseas.
Bilsland said there remained “an opportunity to unlock growth in the tech industry through visa reform”, but warned that details of the government’s plans remained unclear to businesses.
“The visa application process itself must be as seamless and painless as possible, so that it’s accessible for tech businesses of all sizes,” he said.
Adding to the pressure, Startup Coalition this week warned that UK startups were increasingly “losing faith” in government support after years of slow procurement and limited public sector spending with domestic tech firms.
The lobby group stated that reforms to public procurement would need to go much further if ministers wanted to convert their technology ambitions into sustained and measurable economic growth.