Reskilling in the Age of AI: How Leaders Are Preparing Workers for the Future
In today’s rapidly evolving technological landscape, learning new skills has become a vital part of staying relevant in the workforce. As artificial intelligence (AI) continues to advance, leaders are recognizing the need to reskill their employees to ensure they can adapt and thrive in the age of AI.
Harvard Business Review recently published the findings of a survey conducted by the Digital Data Design Institute at Harvard’s Digital Reskilling Lab and the BCG Henderson Institute. The survey involved interviews with business leaders from around 40 organizations globally, shedding light on the importance of reskilling in the face of AI and other emerging technologies.
The research team identified five key shifts in how training needs to be approached in order to effectively reskill employees. For knowledge workers, the advent of generative AI and other technologies has fundamentally transformed the nature of their work, essentially placing them in new fields altogether. This shift necessitates a comprehensive approach to reskilling.
According to the survey, only 24% of companies directly link their corporate strategy with reskilling efforts. However, some organizations have taken proactive steps to integrate reskilling pathways into their policies and infrastructure. Companies like Mahindra & Mahindra, Wipro, Ericsson, and McDonald’s have implemented reskilling initiatives, while CVS has incorporated reskilling metrics into its performance assessments.
To successfully implement reskilling initiatives, leadership buy-in is crucial. Company leaders must make it a priority to facilitate and encourage employee reskilling, ensuring that the necessary resources and support are readily available. For instance, Vodafone provides four days per year for personal development and acquiring new skills.
Notably, Ericsson has successfully upskilled over 15,000 employees in AI and automation over a three-year period. These examples demonstrate the potential impact of reskilling efforts when properly supported and prioritized by leadership.
The World Economic Forum conducted a poll revealing that 44% of the global workforce may require training on new skill sets within the next five years. The forum’s Future of Jobs report also indicated that AI is a driving force behind the changing job landscape. Approximately 75% of surveyed companies anticipate adopting AI, with 50% expecting job growth and 25% anticipating job losses as a result.
As organizations prepare for the future, four out of five surveyed companies expressed their plans to implement learning, on-the-job training, and process automation within the next five years. While AI and big data made the list of desired skills, analytical thinking, creative thinking, resilience, flexibility, and agility were identified as the top three core skills. This suggests that the importance of these skills surpasses any specific technology or tool.
Interestingly, the ability to utilize AI is in higher demand compared to other technological skills such as computer programming, networking and cybersecurity, general technological literacy, and design and user experience. The survey respondents from companies operating in the United States, China, Brazil, and Indonesia estimated that AI and big data would account for over 40% of technology training programs in the next five years.
McKinsey conducted a study on the adoption of generative AI in 2023, and the results indicated that organizations implementing AI expect to reskill just over 20% of their employees. High-performing organizations that derived at least 20% of their earnings from AI were more likely to reskill over 30% of their workforce. However, the study noted that AI adoption remains limited in scope, with less than a third of organizations utilizing AI across multiple business functions.
While embracing AI has the potential to automate a significant portion of work, McKinsey highlighted that this doesn’t necessarily mean entire job roles will be eliminated. Only 8% of survey respondents predicted a decrease in the size of their workforce by more than 2% due to AI.
Reskilling entails providing training to workers on tasks outside their existing skill set or job description, often related to their current role or a different career path altogether. Upskilling, on the other hand, focuses on training within the scope of the employee’s current role, often tied to progression within the same career path.
In order to navigate the fast-paced technological changes of the future, companies must develop systematic and long-term approaches to learning from their reskilling investments. The findings from the Digital Reskilling Lab and BCG Henderson Institute emphasize the need for companies to prioritize reskilling and enable their workforce to acquire the necessary skills to thrive in the age of AI.
In conclusion, reskilling is vital for organizations to adapt to the advancements brought about by AI. Leaders must not only recognize the importance of reskilling but also provide the necessary support and resources to enable their employees to reskill effectively. With the right approach, reskilling can empower workers to flourish in the face of technological change and help organizations stay ahead in the age of AI.
