Nearly half of HR managers worry about skills gaps due to AI

'Becoming an AI-powered organization will require us to work in entirely new ways'

Nearly half of HR managers worry about skills gaps due to AI

Artificial intelligence is affecting not just the work that employees do – it’s also changing skills requirements, finds a new report.

About two-thirds (64 per cent) of HR managers acknowledge that the rise of AI is transforming the landscape of in-demand skills, reports TalentLMS.

Sixty-five per cent believe that digital skills, interpersonal skills and cognitive skills will be crucial for success in the AI era. And problem-solving; creativity, originality and imagination; and ability to learn the top three in-demand cognitive skills in this time.

Over nine in 10 (91 per cent) of hiring employers are looking for workers with experience on ChatGPT, an AI chatbot that rose to fame after its release in November 2022, according to a ResumeBuilder report released in May.

Worries for employers

The increasing prevalence of AI is also causing some worries for employers and employees alike, finds TalentLMS’s survey.

Forty-three per cent of HR managers estimated that their organization will face a skills gap as a result of AI.

Meanwhile, 56 per cent of HR managers also say that the AI-driven necessity to develop new skills is contributing to increased employee stress. 

Nearly six in 10 (58 per cent) are also concerned that AI is fueling job insecurity among employees, and 58 per cent say that older generations might feel less confident at work, compared to their younger colleagues.

Among companies that are using OpenAI’s ChatGPT, 48 per cent said they’ve replaced workers since the new tool became available in November 2022, according to a report released by ResumeBuilder in February.

How employers are training around AI

To address the possibility of a skills gap, 58 per cent of HR managers will use upskilling and reskilling initiatives, and 58 per cent will also invest in AI training tools, according to TalentLMS’s study.

"Embracing AI in our learning and development initiatives is crucial for building organizational resilience," says Thanos Papangelis, co-founder of TalentLMS and CEO at Epignosis. "It empowers individuals to adapt, innovate, and thrive in an ever-evolving landscape, ensuring future success."

Over two in five (41 per cent) of HR managers also intend to hire new employees to overcome the skills gap caused by AI, among other proactive measures.

In light of AI adoption in the workplace, 85 per cent plan to invest in learning and development (L&D) initiatives to train employees on AI. Upskilling (63 per cent) and reskilling (62 per cent) are critical focus areas for HR managers, while 54 per cent of managers emphasize the importance of allocating a budget for AI training.

In talking with Canadian HR Reporter, Claire Guichard, HR vice president, Canada, at Ontario-based Schneider Electric, revealed that her company is using its AI-driven Open Talent Market (OTM) platform to match workers with projects and learning opportunities that interest them.

When it comes to transitioning to an AI-driven future, 45 per cent of HR managers say there is a necessity for companies to establish a clear AI policy – specifically, guidelines on how to ethically and appropriately leverage AI in the workplace, reports TalentLMS.

Over two in five (41 per cent) also say organizations should prepare for a blended workforce, – comprising both employees and AI – to maximize the benefits of AI implementation.

Readying culture for AI-powered future

“Becoming an AI-powered organization will require us to work in entirely new ways,” says Jared Spataro, who leads Microsoft’s Modern Work and Business Applications team, in a Harvard Business Review article.

He shares tips that employers can use today to get their cultures “ready for an AI-powered future”:

  • Since every role and function will have different ways to use and benefit from AI, challenge them to rethink how AI could improve or transform processes as they get familiar with the tools. From there, employees can begin to unlock new ways of working.
  • Both formally and informally, carve out space for people to share knowledge about AI – for example, by crowdsourcing a prompt guidebook within your department or making AI tips a standing agenda item in your monthly all-staff meetings.
  • Establish guardrails to help people experiment on AI safely and responsibly.
  • Make learning to work with AI a continuous process, not a one-time training.
  • Embrace the need for change management.

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