As AI adoption skyrockets, HR teams face a stark reality – upskill workforces rapidly and comprehensively or watch automation displace one-third of the workforce. A recent McKinsey report reveals 38% of executives expect over 20% of employees will require upskilling by 2025 to remain relevant alongside AI. HR has no choice but to architect and lead widescale upskilling initiatives if they want talent to race with, not against, intelligent automation.
- 1 in 3 companies utilize generative AI tools regularly today. Adoption blew past even the most optimistic projections, with customer service, marketing and product development leading the way.
- 40% of organizations expect to increase investments in AI specifically because of explosive advances in generative AI. Total AI spending growth projections continue their relentless climb.
- AI “high performers” – companies attributing over 20% of earnings to AI – are charging ahead compared to peers. They are 5X more likely to invest over 20% of digital budgets into AI. These leaders employ AI across business functions and proactively shape AI platforms to create competitive differentiation.
Yet for all the frenzied adoption, plenty of upside remains. Overall AI adoption hovered at 55% of companies in 2022. Only 16% have scaled AI across 3 or more business functions. Just 23% attribute over 5% of earnings to AI usage. Most organizations have yet to establish the talent, data, and operational infrastructure to fully capitalize on AI’s potential.
The Talent Crunch Will Intensify
As demand for AI skills races ahead, data scientists, ML engineers, and AI translators remain difficult to hire and retain. In this environment, the workforce itself feels tectonic shifts underway. 38% of executives expect over 20% of workforces will require reskilling by 2025 due to AI adoption. For leading AI companies, this balloons to over 30%. Service operations roles are most susceptible to displacement from increasing AI automation.
Upskill HR – now.
To enable organizations to capture value from AI, HR must step forward on three fronts:
- Architect and execute comprehensive retraining programs at scale
- Win the intensifying war for high-value AI talent
- Become proactive advisors to business leaders on optimizing human + AI collaboration
The headline is clear – the scale up of AI is here. We need to upskill HR. HR teams need to be prepared with workforce strategies that fully leverage AI’s promise while mitigating its risks. Will you ride the AI rocket ship to new heights or watch from the sidelines as others pull ahead?
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