Upskilling and Reskilling in the Age of AI

McKinsey estimates that up to 30% of hours worked could be automated by 2030. The change could lead to nearly 12 million occupational transitions in the U.S. and another 12 million across Europe.

Upskilling helps people perform better in their current jobs. Reskilling prepares workers for entirely new positions. Your organization will need to use a mix of both to prepare for AI-spurred disruptions.

Learn how reskilling in the age of AI can complement your AI development journey and position you to compete in the future of work.

Why AI Demands a New Approach to Workforce Development

McKinsey reports that early AI adopters are placing more emphasis on talent development. The organization’s analysis estimates that over half of current jobs will see significant task transformation, with many skills becoming obsolete within five years.

Similarly, IBM’s Think Report emphasizes that soft skills like critical thinking and adaptability are now as vital as technical expertise.

In the past, employers may have been willing to overlook soft skill deficiencies because they needed technical know-how. However, reskilling in the age of AI means focusing on soft skills, as these abilities, more than any others, differentiate human workers from artificial intelligence.

To thrive, your organization needs to prioritize skills agility, the ability to continuously learn and adapt to evolving tech. This means moving beyond one-off training to create a culture of ongoing learning, preparing employees for both current and future roles.

By prioritizing reskilling in the age of AI, you can stay ahead of disruption and maintain a competitive edge. However, achieving newfound resilience means reevaluating how you approach employee training and development.

Start by conducting an audit of your current strategies and identifying ways to improve them. Now is a great time to upgrade your learning management tools and prepare for the future of work. Once you’ve done that, you’ll need to determine what skills your team needs in the AI era.

What Skills Are in Demand in the Age of AI?

As AI reshapes the way we work, two skill categories stand out: digital/AI literacy and human strengths. Possessing both skill sets will ensure that your team members can collaborate with AI tools while leaning into their uniquely human capabilities.

According to the Harvard Division of Continuing Education, professionals must adopt a lifelong learning mindset to achieve career longevity in the age of artificial intelligence.

Talk to your team about becoming lifelong learners, including what it means and how you intend to support them on this difficult journey. Keep in mind that the transition can be especially difficult for older workers, as well as those with minimal tech literacy.

By aligning your learning and development strategy with big-picture goals, you can prepare for reskilling in the age of AI. Here’s how to address both digital literacy and human soft skills in your L&D initiative:

Digital Literacy

According to a survey of 1,400 C-suite executives, the majority of business leaders view AI and GenAI as top tech priorities. However, 62% cited a scarcity of skills and talent as the biggest barrier to continued AI adoption. Skills like prompt engineering are increasingly vital, enabling workers to make the most of tools like ChatGPT or Gemini.

Data analysis remains an important skill, as well, but next-gen analysts will need to add an AI twist to their talents. Interpreting AI-generated insights for accuracy will help those switching from marketing to operations roles. Professionals who are reskilling into new roles will also need proficiency with cloud tools like AWS and Azure.

Human Strengths

While AI excels at processing data, human strengths like adaptability, creativity, collaboration, and judgment remain irreplaceable. These skills enable workers to navigate complex, ambiguous scenarios where AI may apply predetermined answers without gray areas.

Creativity promotes innovative problem-solving, while collaboration fosters cross-functional teamwork. Ready to rethink how you nurture human-centric talents? Explore ICF’s framework for upskilling.

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Common Barriers to Upskilling and Reskilling — and How to Overcome Them

Reskilling in the age of AI is bound to be challenging. However, you can prepare your organization and its employees by identifying common barriers to upskilling. Some of the biggest obstacles standing in your way include:

• Lack of time: Many employees struggle to balance learning with daily work.
• Unclear ROI: Unclear value can deter businesses from investing in upskilling and reskilling.
• Leadership buy-in: The C-suite must be committed to the initiative.
• Employee resistance: Some workers may be afraid of change or concerned that they won’t excel in their new roles.
• The one-time mentality: Employees and leadership may cling to the one-time mentality, but continuous capability building is vital.

The best way to surmount these barriers is with a head-on approach. Talk to your employees about upskilling and reskilling. Explain why it's necessary and how you intend to equip them for success in the future of work. Don’t be tempted to sugarcoat the issues — be clear that adaptation is a necessity to remain an asset.

Several organizations have already faced and overcome these hurdles. AT&T is a prime example.

The company hosted an internal competition that centered around its adapted version of ChatGPT, Ask AT&T. The competition included over 70 participants, who were grouped into 16 teams and tasked with a wide range of problem-solving and learning challenges while being guided by Ask AT&T.

Ultimately, the competition narrowed the field to four contenders. Several organizational leaders evaluated their work and named PLEdge of Progress the winning team. Some of the winning concepts are now in the development pipeline.

This experiment boosted employee engagement and will help modernize AT&T’s L&D strategy.

Strategies to Future-Proof Your Workforce

To stay competitive, you must proactively prepare your workforce for artificial intelligence-focused changes. Here are some actionable strategies to help you build a resilient, adaptable team:

Start with a Skills Audit

Step one is to identify your weaknesses and where you need more talent. ICF recommends conducting a data-informed gap analysis. This approach involves analyzing current capabilities against future needs, using tools like competency frameworks to align your L&D strategy.

Once you’ve identified the skills you need, prioritize them so you can address the most pressing goals first. Then, work your way down the list. Identify metrics for tracking your progress and put together an actionable game plan for launching your initiative.

Create Role-Specific Learning Paths

Employees won’t be engaged if they’re given generalized learning paths. Blanket training sessions aren’t just bad for your team; they’re also incredibly wasteful. As such, you need to build role-specific learning paths that reflect each participant’s career goals, strengths, and weaknesses.

Seek input from your employees and find out what they’re most interested in. This is especially important when reskilling people into new roles. While not everyone will be able to pick their path, they should have some input.

Encourage Cross-Functional Learning

Cross-functional training helps make your team more nimble. If a role evolves or you need to shuffle your employees based on changing demand for skills, cross-training lets you adapt. Additionally, cross-training helps you stay productive when team members call out, take leave, or quit.

When identifying cross-functional learning opportunities, focus on similar or complementary roles. That way, you aren’t asking employees to learn two completely different jobs. The goal is to challenge employees to reach their full potential without overburdening them with unrealistic expectations.

Use AI to Upskill for AI

Artificial intelligence tools like ChatGPT are helpful for microlearning or personalized coaching. Use them to deliver bite-sized, on-demand training. AI upskilling can be more efficient and scalable for busy teams.

Before adopting this strategy, gauge your team’s overall comfort level with AI tools. Some employees, especially older workers and staff members in less tech-centric roles, may be apprehensive about using AI. Address their discomfort and encourage them to expand their talents.

Measure Progress with Impact Metrics

Don’t rely on course completion rates alone to measure your progress. Track key performance indicators like productivity gains and employee engagement to make sure your L&D strategy is working.

It’s also a good idea to gather feedback from participants to find out what works, what doesn’t, and how you can make the program more engaging for your workforce.