Reskilling and Upskilling in the AI Age

As we move into the #AI-powered future, one of the most significant challenges businesses face is ensuring their workforce is equipped to meet new demands. With AI taking over repetitive and mundane tasks, the emphasis for human workers has shifted towards higher-order cognitive functions, creative problem-solving, and strategic roles. The world of work is evolving rapidly, and organizations need to adopt a proactive approach to reskilling and upskilling their employees to remain competitive and agile.

In this article, we’ll explore how businesses can leverage reskilling and upskilling strategies in the AI age, backed by data from leading firms such as 普华永道 , 德勤 and 麦肯锡 .We will also examine compelling case studies and best practices from companies leading the charge in workforce transformation.

According to McKinsey & Company, nearly 60% of all occupations have at least 30% of their activities that are automatable with current technologies. Moreover, they estimate that by 2030, 375 million workers globally will need to switch occupational categories due to automation and AI. This seismic shift means that the way businesses think about talent must evolve from simply filling roles to developing skills and capabilities that align with future job requirements.

PwC’s Global CEO Survey supports these findings, with 79% of CEOs citing a shortage of key skills as one of their top three threats to growth. The skills gap, exacerbated by the rapid adoption of AI, underscores the need for businesses to invest in training programs that enable their workforce to move into strategic roles that machines cannot replicate.

The Reskilling Revolution: Why It’s Not Just About New Skills

Reskilling isn’t just about acquiring new technical skills. While knowledge of AI, machine learning, and data science is important, it’s equally crucial for employees to develop skills that machines cannot easily perform—such as emotional intelligence, leadership, and adaptability.

World Economic Forum’s Future of Jobs Report highlights that by 2025, 85 million jobs may be displaced by automation, but 97 million new roles will emerge that require a combination of technical and soft skills. These roles will increasingly rely on human judgment, creativity, and problem-solving—capabilities that AI, despite its advancements, cannot match.

The reskilling revolution demands a holistic approach to workforce transformation. Companies need to focus not only on the technical competencies required to work alongside AI but also on cultivating the emotional and cognitive skills that will drive strategic decision-making and innovation.

Upskilling for Strategic Roles: Where Should Organizations Start?

For #CHROs and senior leaders, the question is not if but how to upskill their workforce for strategic roles. Here are several critical areas of focus:

• Identify Future Skill Requirements Begin by analyzing which skills will be most valuable in the future. According to Deloitte’s Human Capital Trends, roles that involve critical thinking, creativity, and emotional intelligence will see increased demand, while routine, manual, and administrative tasks will be automated.
• Prioritize Soft Skills While digital skills are a necessity, soft skills such as adaptability, problem-solving, and collaboration are becoming equally important. A report by LinkedIn Learning shows that 57% of senior leaders say that soft skills are more important than hard skills for future leadership positions.
• Create Tailored Learning Pathways One-size-fits-all training programs won’t cut it. Employees at different stages of their careers and across various functions will have unique learning needs. Designing tailored learning pathways, with options for self-paced, on-the-job, and collaborative learning, ensures employees can develop the skills most relevant to their roles.
• Leverage AI in Learning Ironically, AI can be part of the solution. AI-powered learning platforms can help tailor training programs to individual learning styles, provide real-time feedback, and recommend additional resources. Companies like AT&T have used AI to create personalized upskilling paths for employees, which has helped them stay competitive in the telecom industry.

AT&T Business Billion-Dollar Workforce Transformation

One of the most well-known examples of a successful reskilling initiative is AT&T’s Future Ready program. Faced with the challenge of digital transformation, AT&T made a bold decision in 2013 to invest $1 billion into reskilling its workforce. AT&T’s CEO recognized that over half of its 250,000 employees were working in jobs that would become obsolete due to advances in technology.

To address this, AT&T launched a comprehensive workforce transformation initiative, focusing on reskilling employees for high-demand roles like cloud computing, data analytics, and cybersecurity. The company partnered with online education platforms such as Coursera and Udacity to provide employees with access to courses tailored to future business needs.

By 2020, more than 100,000 AT&T employees had completed retraining programs, allowing the company to fill crucial roles internally and reduce its reliance on external hiring. This reskilling initiative not only saved jobs but also helped AT&T remain competitive in an industry undergoing rapid technological change.

Why Upskilling is a Business Imperative, Not a Luxury

For many organizations, upskilling has moved from a "nice-to-have" to a business imperative. The economic and competitive pressures of the AI age mean that companies can no longer rely solely on hiring external talent to fill skills gaps. Instead, they must look inward, investing in their current workforce to build the capabilities they need for the future.

Research by PwC found that 74% of employees are ready to learn new skills or retrain to remain employable. Moreover, companies that invest in upskilling see tangible returns: a study by Boston Consulting Group found that organizations with well-established upskilling programs saw productivity improvements of up to 30% and a 20% increase in employee satisfaction.

Role of CHROs in Leading the Upskilling Agenda

CHROs are at the forefront of this transformation. As workforce architects, they are tasked with ensuring that employees have the skills, knowledge, and tools to succeed in an increasingly automated world. Leading firms like 联合利华 , 西门子 and IBM have empowered their HR leaders to spearhead reskilling initiatives, integrating them into broader corporate strategies.

At Unilever, for example, the company launched its Future Fit program, aimed at helping employees build digital skills while also focusing on lifelong learning. The program, led by the CHRO, emphasizes both digital literacy and personal development, ensuring employees are equipped to navigate future challenges.

How to Measure the Success of Reskilling and Upskilling Programs

It’s essential to evaluate the effectiveness of reskilling and upskilling programs. Here are some key metrics to consider:

1. Skill Acquisition: Track the number of employees who complete upskilling programs and attain certifications in new skills relevant to their roles.
2. Internal Mobility: Measure the rate of internal promotions or lateral movements into new, more strategic roles after employees complete training.
3. Employee Engagement: Surveys or pulse checks can assess whether employees feel supported in their development and if they find the programs beneficial.
4. Business Impact: Ultimately, the success of reskilling initiatives can be measured by their impact on business outcomes, such as increased productivity, revenue growth, or reduced turnover rates.

Siemens Approach to Workforce Transformation

西门子 a global leader in industrial manufacturing, has been at the forefront of using AI and automation to enhance operations. Recognizing that its workforce needed to evolve alongside technology, Siemens launched its Future Skills Initiative. This initiative aimed to reskill 300,000 employees globally, focusing on data analytics, digital twin technology, and automation.

Siemens’ approach centered on digital learning ecosystems where employees could access customized learning content, collaborate with peers, and gain hands-on experience with emerging technologies. By providing a flexible, self-directed learning environment, Siemens empowered employees to take control of their career development while meeting the company's strategic goals.

As a result, Siemens has seen a 20% increase in internal mobility, allowing the company to fill key roles with existing employees and reduce its reliance on external recruitment. Siemens’ reskilling efforts have been instrumental in its transformation into a digital-first industrial powerhouse.

Conclusion: Staying Ahead in the AI Age

The rise of AI and automation presents both challenges and opportunities for businesses. Organizations that fail to invest in reskilling and upskilling their workforce risk falling behind, as the demand for strategic, high-skill roles continues to grow. On the other hand, companies that embrace workforce transformation will position themselves as leaders in their industries, capable of adapting to the rapid pace of technological change.

CHROs have a critical role to play in leading this revolution. By identifying future skill requirements, prioritizing soft skills alongside technical competencies, and creating tailored learning pathways, they can ensure their workforce is prepared for the future.

As demonstrated by companies like AT&T and Siemens, reskilling and upskilling are not just strategies for managing the present but essential investments in building a future-ready workforce that can thrive in the age of AI.

References:

• 麦肯锡 , "Jobs Lost, Jobs Gained: Workforce Transitions in a Time of Automation"
• 普华永道 Global CEO Survey
• World Economic Forum "Future of Jobs Report"
• 德勤 "Human Capital Trends"
• 波士顿谘询公司 "The Upskilling Imperative"