Artificial Intelligence is creating a skills gap: here’s what HR teams can do

As AI worms its way into the workforce, it’s increasingly changing the skills shopping list for new hires.

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64% of Human Resources managers have said that the rise of AI is changing key in-demand skills.

85% are also planning some kind of learning and development investment to future-proof their employees for the further spread of AI.

The survey of 309 HR managers conducted by TalentLMS reveals how 43% of HR managers think their company will face a skills gap because of AI.

Preparing for the AI office

58% of HR managers will use upskilling and reskilling initiatives, along with investing in AI training tools. Moreover, 41% of HR managers intend to hire new employees to overcome the skills gap caused by AI.

When it came to understanding how to roll out a plan to adapt to AI in the workplace, 63% of HR professionals noted upskilling and 62% highlighted reskilling as key priorities. A further 54% emphasised the importance of allocating a budget for AI training.

The AI skills gap is the latest chapter in a larger trend of disruptions caused by digitalisation. According to IONOS data, 79% of small business owners in the UK consider the adoption of new technologies to be critical for future growth. Nevertheless, 29% said the ongoing shortage of skilled workers poses a high or very high risk for their business

“Embracing AI in our learning and development initiatives is crucial for building organisational resilience,” emphasised Thanos Papangelis, cofounder of TalentLMS and CEO at Epignosis.

“It empowers individuals to adapt, innovate, and thrive in an ever-evolving landscape, ensuring future success.”

However, preparing for a hybrid office wherein both artificial intelligence and humans coexist requires not just training, but clear guidelines set by executives.

According to survey data, 45% of HR managers stressed the necessity for companies to establish a clear AI policy. This is so teams have the reassurance that the technology is being rolled out in an ethical way that appropriately leverages the power of AI in the workplace.

Why is minding the AI skills gap important?

The gradual widening of the AI skills gap has repercussions on both the health of a business and of its employees. 58% of respondents expressed concern that AI is fueling job insecurity among employees.

Similarly, 56% of HR managers agreed that the AI-driven necessity to develop new skills is contributing to increased employee stress.

Feeling inadequate at work, however, comes attached to a generational gap. 58% of HR managers believe that the older generations might feel less confident at work, compared to their younger colleagues.

Employee wellbeing is vital for a happy and productive workforce, therefore, falling behind on reskilling or upskilling can tarnish workers’ confidence.

The toll the AI skills gap has on businesses, however, goes beyond employees’ mental health. According to Virgin Media O2 research, the digital skills gap is costing the UK economy £12.8bn.

Businesses have a long list of assets to win with AI and a lot to lose if they fall behind on the AI workplace transformation.

In fact, 62% of HR managers agree that AI will help employees with repetitive tasks, allowing them to focus on more strategic and creative work. A further 57% agree that upskilling employees for the AI-driven future will boost overall productivity.

Executing a smooth AI transition

Survey data reveals there is no one solution that has unanimous support from HR managers. 45% of HR managers agree hHaving clear AI policy guidelines on how to and how not to use AI at work, should be a priority.

Regardless of which method businesses rely on, it’s becoming increasingly evident that AI is forging its own place in the workforce. Businesses should get ready.

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Written by:
Fernanda is a Mexican-born Startups Writer. Specialising in the Marketing & Finding Customers pillar, she’s always on the lookout for how startups can leverage tools, software, and insights to help solidify their brand, retain clients, and find new areas for growth. Having grown up in Mexico City and Abu Dhabi, Fernanda is passionate about how businesses can adapt to new challenges in different economic environments to grow and find creative ways to engage with new and existing customers. With a background in journalism, politics, and international relations, Fernanda has written for a multitude of online magazines about topics ranging from Latin American politics to how businesses can retain staff during a recession. She is currently strengthening her journalistic muscle by studying for a part-time multimedia journalism degree from the National Council of Training for Journalists (NCTJ).

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