AI's presence is ever-growing in the business world, and with it, an uncertainty among the professional community that their roles will become redundant. The stark reality of this is already setting in - with research from Adzuna suggesting that new entry-level UK jobs have dropped by almost a third since the launch of ChatGPT.
This, partnered with news that companies such as Microsoft and Klarna have reduced their workforce by thousands to focus on AI, means employees are understandably concerned about what this will mean for their livelihoods. It really is no surprise, then, that a quarter of UK workers fear that AI could lead to job losses, according to recent research from Acas,
Of course with the rise of AI (or any new technology) comes a widening digital skills gap - data from Censuswide in 2022, show that 55% of UK organisations were facing a digital skills shortage during that period. Fast forward to 2024, and a CIMA survey reported that 79% of employers had identified gaps in digital, IT, and AI-related skills - an increase of nearly 45% in just two years.
This is an issue that L&D and HR more than anyone have the tools and ability to tackle, but it needs to be urgently looked at and addressed via new tactics suitable for the evolving landscape.
But it's not all bad news. AI can brighten the future of work, if we use it correctly. In training, AI's power can instantly help identify individual digital skills gaps, which in turn, will guide people and businesses in building the knowledge needed for this new age, versus replacing the need for them at all.
With this in mind, businesses should be investing in HR and L&D to build the growth potential of their existing workforce, not replacing it with AI for quick financial and time savings.
Both HR and L&D leaders have an important role to play here in guiding employees through this transitional period. If done correctly, it could have a huge impact on driving business performance forward, while mitigating job losses at a mass scale - including from their own departments. A win-win for businesses and employees.
How and why we learn from the past
Following the dot-com boom of the late 90s, many organisations failed to provide the right training as the digital transformation exploded. As such, in 1997, Microsoft reported 190,000 open IT roles in the U.S. alone, with 41,000 more vacancies in its partner ecosystem worldwide.
Further to this, a 2001 UK Office for National Statistics report later attributed over 50% of skill shortages to companies failing to train staff and keep pace with change - underscoring that the skills gap was often a result of inadequate upskilling rather than demand outstripping supply, or simply put, tech taking over.
As Morgan Housel writes in The Psychology of Money, the past is not always a reliable indicator of the future, however, early signs show we are looking at history rewriting itself here. Managers need to learn from past mistakes and understand the implications on business performance, profitability and the economy at large. There is an incredible opportunity, but we must first look to re-evaluate how staff are initially communicated with, and the ways in which they are ultimately upskilled. This is the key to mitigating the growing skills gap and avoiding past mistakes.
HR and L&D are best placed to guide the way - here's how
HR and L&D professionals have long been trusted to support employees through challenges and guide their growth. But as we enter the AI era, we're treading unfamiliar ground. This brings anxiety and uncertainty among staff - and now more than ever, they need trusted voices.
So, how to navigate these murky waters and deliver? First and foremost, the key thing to focus on, throughout the entire process, is open and authentic communication. It's one of the most important tactics in moments of uncertainty - to remain clear, honest and open on the realities of the situation, and also, how you work through them as a collective to come out the other side stronger.
There's no sugarcoating the challenges - but there's also a powerful message to share - AI, when harnessed correctly, can enhance productivity, drive progress and even be used to upskill. Leaders must communicate this confidently, while also acknowledging and addressing employees' concerns. If we're transparent about AI's role - explaining how it will be used to improve efficiency, not replace jobs, employees will be more open to adapting and reskilling.
This is a key area where HR and L&D can and should intersect too. HR can clarify what parts of work will be automated and what new skills will be needed. L&D can then map out reskilling and upskilling opportunities to prepare employees for that future.
Tailored upskilling is the way forward - how it's delivered is key
The World Economic Forum's Future of Jobs Report 2023 predicts that 44% of workers' core skills are expected to change in the next five years, and that six in ten workers will require training before 2027 - yet the majority are not receiving the opportunities. This puts millions of jobs at risk - as put simply, the skill sets are not meeting the technological advances.
To avoid repeating the mistakes of the dot-com era, L&D leaders must rethink traditional training models - namely the one-size-fits-all approach, that no longer works. Instead, personalised learning pathways are the way forward and they should be put in place to help guide each employee through this technological shift.
The first step is helping employees understand what they'll need to learn and why, before presenting them with entirely new training. That means identifying future skills with precision via suitable platforms that can help map the tools needed for each role and individual.
Separately, this insight should be supplemented with research into what AI cannot replace relevant to the industry in question - such as critical thinking or complex problem-solving. By focusing training and initial conversations on these human-centric skills, you can help to calm anxieties and future-proof the workforce.
AI doesn't have to be the villain in this story either, as when applied responsibly, it can be a powerful vehicle for improving the future of work. It has the capability to diagnose where the specific skill gaps are in a business and almost instantly map out the right training for each individual.
That's why we built SkillsAssess - we recognised that the skills gap could be reduced, and the escalating jobs crisis could be mitigated, with the very technology that was driving it.
So let's do just that - let's use AI to close the skills gap, by channeling its power to help identify personalised learning pathways. By adopting this approach, HR and L&D teams can help ensure individuals are equipped to thrive in this new era.
As always, the proof is in the numbers and the impact of targeted upskilling is hard to argue with. CIPD's Essential Skills Tracker 2023 found that targeted upskilling - particularly in digital - can increase individual earnings by 9.4 - 12% annually and reduce the risk of unemployment by around 25%.
Too often, employees are overwhelmed by vast libraries of courses that don't speak to their actual needs. As this technology reshapes the professional landscape, we must prioritise AI literacy and encourage experimentation in the tech, so employees adapt fast and become confident in using it.
The alternative risks a new wave of unemployment, an even wider digital skills gap, and weaker business performance - not to mention wasted investment into ineffective training.
HR and L&D are best placed to pave the way - but we must act now. To do this, managers must harness AI responsibly and create personalised learning paths that empower employees and secure the future of work for everyone. A future that uses AI as a tool for innovation and growth, not to cut jobs.
