AI Skilling – Impact on Innovation, Growth, Workforce, Market, and Best Practice Analysis

Executive summary

Skills have been for centuries the key to human and economic development. The propagation of new knowledge is the foundation for competitiveness and prosperity. In every technology shift there is a period when progress is slowed not by the technology itself, but by its knowledge’s uneven propagation and use. The AI revolution is no different. That’s AI skilling is not an HR side project; it is leadership infrastructure for building collective intelligence—humans and machines sensing, deciding, creating, and learning together, at scale—ultimately driven organizational outcomes.

The evidence in this paper shows: (1) human capital remains the strongest engine of prosperity; (2) organizations that make AI literacy universal and “in the flow of work” scale adoption faster; and (3) greater AI mastery raises both trust and critical scrutiny, improving outcomes without blind reliance. In short: invest in people and the whole system compounds.

The research also cuts through pessimism: broad studies across countries and firms show limited evidence of net job loss to date and frequent augmentation effects when skilling is present. Where literacy is higher, trust and usage rise together—people collaborate with AI more effectively and check it more carefully. These are critical insight when embarking in the transformation of large enterprises.

Analysis of Market Evidence and Scientific Literature

Skilling for AI is a crucial part of AI transformation. Better skills and related infrastructure already predicted success in digital transformation during the previous AI wave (2015-2021), but they are especially vital now. Leaders in AI transformation tend to have stronger skilling infrastructure, and employees typically want to enhance their skills. At the same time, it’s becoming clearer that successful AI-adopting companies do not treat AI skilling as just a standard learning and development (L&D) activity, nor do they see it solely as a Human Resources (HR) responsibility. Instead, they make AI skilling a multi-faceted effort, rooted in collaboration and knowledge management practices, driven by business leaders and supported by HR.

Below is an overview of the current situation, based on analysis of dozens of market reports and scientific literature.

 

Empirical research confirms that human capital is a key driver of prosperity. Globally, each additional year of schooling yields a 9-10% private wage return. Macroeconomic models show significant GDP gains from upskilling; a European Union study found that a 10-percentage-point reduction in low-skilled adults could increase long-run GDP per capita growth by 0.1 percentage points. One forecast suggests accelerated global upskilling could add $6.5 trillion to world GDP by 2030.

Case studies from India and China provide concrete proof. India's national skilling missions, such as PMKVY, have measurably reduced unemployment in targeted districts. Advanced digital skills now contribute an estimated ₹10.9 trillion ($508 billion), or 2.5% of India's GDP, with these skills explaining roughly a quarter of the nation's recent incremental growth. Similarly, China's massive investment in vocational education, training over 61 million new technicians since 2012, helped expand its core digital economy to 9.9% of GDP and boosted manufacturing productivity.

Scientific research has led to the same conclusions. James Bessen’s work, for instance, shows that value follows learning in practice: firms win when they place capability building inside daily work, standardize emerging methods, and redesign processes alongside tools. Jeffrey Ding shows the same dynamic at national scale: durable advantage accrues to systems that diffuse general-purpose technologies broadly by investing in skill infrastructure and adoption institutions. Let’s explore they work in more detail.

James Bessen’s core thesis. The big gains from new technologies arrive only after a long, uneven period of organizational learning in which firms re-engineer processes, workers build tacit know-how, and industries standardize practices. In early phases, benefits are patchy and inequality can widen; once practices standardize and skills diffuse, productivity and wages rise more broadly. The main mechanisms of technology propagation are the following:

  • Tacit, firm-specific knowledge. Most know-how isn’t in manuals; it’s accumulated “on the job,” which is why diffusion takes years and why training embedded in real work accelerates it.
  • Co-invention of processes. Technology pays off when paired with new workflows, incentives, and roles (not just tools). This co-invention creates adoption lags and initially uneven returns.
  • Standardization effects. Common interfaces and norms (think QWERTY-like convergence) reduce learning costs and unlock scale.
  • Labor-market dynamics. Occupations that learn to use new tech often grow—even routine ones—once diffusion takes hold; displacement risk is real but not deterministic.

Implication: reat skilling as operating infrastructure: put learning inside the job, codify emerging standards, and staff for process redesign alongside tool deployment. That’s how you compress the adoption curve Bessen documents.

Jeffrey Ding’s core thesis. In great-power competition, advantage comes less from one-off breakthroughs and more from diffusing general-purpose technologies (GPTs) widely across the economy. The key variable is a state’s diffusion capacity—its institutions, skills, and incentives that move capabilities from labs and leading sectors into everyday production. The main mechanisms of technology propagation are the following:

  • GPT diffusion mechanism. Power tilts toward countries that spread platform technologies (steam, electricity, digital, AI) across sectors through workforce skills, interoperable standards, financing, and local adoption support.
  • Skill infrastructure. Where institutions foster broad, practical learning—apprenticeship-like models, industry standards, and managerial capability—diffusion accelerates; where these are weak, nations suffer a diffusion deficit.
  • Policy misfocus. Overweighting R&D and underweighting diffusion (skills, standards, adoption incentives) leads to underperformance despite high invention rates.

Implications: build diffusion capacity inside the enterprise: invest in workforce-scale skill infrastructure, shared playbooks, evaluation/guardrails, and cross-unit co-creation so that new capabilities actually propagate. That’s Ding’s macro logic applied at firm level.

Together, they argue for a leadership stance that prioritizes adoption over announcement—and that is what this paper operationalizes.

If invention is the new engine, adoption is the powertrain.

As generative AI becomes a transformative technology, future economic dividends depend on AI-specific upskilling. Developed economies face significant pressure to adapt. Japan, grappling with a shrinking workforce, could unlock an additional ¥148.7 trillion ($1.1 trillion) in economic capacity by 2035 through widespread AI adoption and retraining. Projections for the United States suggest Gen-AI could lift GDP by as much as $3.8 trillion by 2038, adding up to 1.5 percentage points to annual growth. For the European Union, scaled AI adoption could boost its economy by €1.2–1.4 trillion by 2034.

However, a severe AI skills gap threatens this potential. In Japan, 70% of firms report critical tech-talent shortages. In the U.S., 65% of companies struggle to hire AI engineers. India faces a potential shortfall of 1.4 million AI professionals by 2026, which could forfeit 0.7 percentage points in annual growth.

A second obstacle to adopting artificial intelligence, besides the lack of sufficient skills, is the generally pessimistic attitude towards AI.

Workforces worldwide are hearing a constant stream of AI pessimism—yet the data reveal a very different story. While in the US nearly a third of employees express fears or negative feelings about using AI in their daily work, this concern is more based on perception than on solid evidence of harm. The most common worries include lack of trust in AI’s accuracy, capability, or reliability, fear of losing their jobs, and the perceived loss of a “human touch” in decision-making. If left unaddressed, these fears can weaken engagement, as people who expect to be replaced are less likely to put effort into learning new tools.

Yet rigorous research so far shows it is too early to justify this structural pessimism. Multiple macro and micro-level analyses find no widespread AI-driven job losses. For instance, the “new-graduate gap” in unemployment—which in the US hit 5.8% for recent college grads—actually peaked before generative AI’s rise and has since fallen below its 2021 high. Tech-sector hiring declines have reversed, and white-collar employment shares have grown slightly over the past year. Even the much-cited Oxford Economics report relies on selective metrics; more comprehensive surveys (e.g., the New York Fed’s late-2024 employer survey) find that most firms say AI has not yet impacted their hiring decisions.

Indeed, an increasing number of country and firm-level studies indicate net job gains or neutral effects from automation. In Japan, for example, Adachi, Kawaguchi, and Saito (2020) analyze four decades of firm-level data and find that robot adoption is associated with significant increases in both employment and output. Similar findings are observed in studies from Spain, Canada, Finland, and at the broader OECD level, suggesting that the “reinstatement effect” of new tasks and industries often outweighs job displacement.

Alongside employment-neutral or positive findings, many workers report emotional and productivity benefits from AI. Six in ten employees already see AI as a "co-worker," noting that it can boost self-efficacy in creative tasks, increase confidence in decision-making, and reduce time spent on routine work. Positive emotional responses—excitement, enthusiasm, reduced anxiety—often accompany AI use, even as some express caution about “cognitive offloading” (overreliance on AI solutions without critical scrutiny).

Still, regional divides are significant. A recent University of Melbourne & KPMG, “Trust, attitudes and use of AI: A global study 2025” provides helpful data points here. Optimism is highest in emerging markets—83% in China, 80% in Indonesia, 77% in Thailand—while only 40% in Canada, 39% in the U.S., and 36% in the Netherlands view AI as more beneficial than harmful. AI literacy shows a similar pattern: about three-quarters of workers in emerging economies feel capable of using AI effectively, compared to roughly half in advanced economies.

Japan, in particular, stands out for its strong concern. Fully 70% of surveyed Japanese express worry about AI, compared to just 37% who are optimistic. This worry persists despite Japan’s status as the world’s second-largest installer of industrial robots in 2023—Chinese installations outnumber Japan’s six to one, highlighting that automation is already a deeply rooted reality in its economy. Workers in other developed countries share similar feelings.

It is important to note that there is a correlation between feeling pessimistic and distrustful and feeling that one lacks understanding of new technology. Most workers and citizens in developed economies feel they have not been adequately trained or have insufficient knowledge and lack confidence in their own capabilities when it comes to new technology.

When combining the two elements described above into a more systematic statistical analysis, AI literacy stands out as the strongest predictor of both AI usage and critical engagement, associated with increased trust, acceptance, and performance improvements. Data from various sources, including the previous one, show that employees with greater understanding or mastery of AI tend to have higher levels of trust in it.

Direct Correlation between AI Literacy/Training and Trust/Acceptance:

  • AI literacy is consistently identified as a "cross-cutting enabler" that is associated with greater use, trust, acceptance, and critical engagement with AI, leading to more realized benefits in the workplace.
  • Individuals with AI-related education or training are almost twice as likely to trust and accept AI technologies compared to those without.
  • People are more likely to trust AI systems when they believe they understand AI and have received AI education or training. This suggests that foundational knowledge and formal learning directly contribute to higher trust.
  • Analysis of key predictors for AI acceptance shows that the knowledge pathway, which includes AI literacy (understanding AI, efficacy in using it, and having received training), positively influences trust.
  • Younger, university-educated, higher-income earners, and those with AI training generally report more trust, higher AI use, and greater AI literacy. This indicates a demographic alignment where higher AI "mastery" attributes coincide with higher trust.
  • Specific forms of training and coaching are shown to significantly boost employees' confidence in AI and improve the quality of AI-enabled work outputs. Confidence here is a strong proxy for trust.
  • When employees are more familiar with AI agents, they tend to perceive them as a valuable tool rather than a threat. This shift in perception implies an increased level of trust and acceptance as understanding grows.
  • Nuances in Trust and Engagement with Higher Mastery:

Higher educational attainment is associated with greater awareness of potential drawbacks of AI and a higher likelihood to cross-check and critically evaluate AI-generated content. This suggests that "mastery" or deeper understanding leads to a more informed and discerning trust rather than blind acceptance. This clearly illustrates that lack of skill can lead to unquestioning reliance, while higher skill fosters critical engagement.

In summary, the sources strongly support the idea that employees who understand AI well or have higher AI literacy tend to trust it more, often leading to greater adoption and perceived benefits. However, this "mastery" also shows up as a more critical and detailed engagement with AI, where trust is carefully calibrated and outputs are examined, rather than simply accepted without review.

At the same time, products and services using artificial intelligence still need to demonstrate in many developed economies that they can meet the expected trustworthiness standards and prove their superior value over traditional options.

Cross-country surveys show a clear pattern: workers in several emerging markets are markedly more optimistic about AI’s benefits, while many advanced economies report lower optimism and higher caution. Japan is a notable outlier, with high concern despite deep automation exposure. These differences in sentiment align with differences in reported AI literacy. (Source: Ipsos AI Monitor 2024.)

In sum, the prevailing AI pessimism is not borne out by research; there is ample ground for cautious optimism. But to translate that optimism into engagement and productivity, organizations must act swiftly to guide their people’s expectations and equip them with the skills to thrive alongside AI.

The mismatch between research and perception poses a serious risk of disengagement. If workers hear only bleak predictions, they may resist AI adoption or downgrade their career aspirations. To counteract this, organizations must rapidly deploy clear, data driven communications that:

  1. Reframe AI as an enabler, not an existential threat—share evidence showing neutral or positive labor‑market impacts, including the Japanese case of employment gains alongside heavy automation.
  2. Address specific fears—provide transparency on AI reliability, explain human oversight mechanisms, and highlight how AI augments rather than replaces judgment.

Crucially however, guidance must be paired with a robust upskilling agenda. Skills requirements in AI exposed occupations are changing 66% faster than in less exposed fields, and it’s estimated that 70% of the skills now used in most jobs will shift by 2030 . AI driven personalized learning platforms have already driven a 71% increase in researchers planning to reskill , yet fewer than one third of financial institutions have upskilled even 25% of their workforce .

The most successful companies distinguish themselves not by the algorithms they deploy, but by the investments they make in their people. Forward-looking organizations across industries – from tech giants to banks – treat workforce skilling and redeployment as a core strategy alongside implementing new AI technologies. They use a variety of creative tactics to engage employees in learning, whether through real-time “in the flow” learning opportunities, peer networks like AI guilds, gamified experiences, or comprehensive academies. Crucially, they strive to make AI adoption a collaborative journey with employees, not something imposed top-down. This includes addressing worker concerns (job displacement fears, trust issues) through transparency, training in responsible AI use, and a clear message that employees will share in the benefits of AI.

The competitive advantage of this people-first approach is already evident. Companies that have upskilled a broad base of their workforce can more rapidly scale AI projects and adapt to new market conditions, whereas those that neglect training often find their AI initiatives bottlenecked by talent gaps. As we move deeper into the AI age, a new consensus is emerging: future-proofing the organization means future-proofing its workforce. The skills that need to be built or updated range from hard technical know-how (data, AI tools, machine learning) to soft skills (adaptability, creativity, ethical judgment) – and development in all these areas must be ongoing. Surveys indicate that over half of workers know they need to gain new skills because of AI’s impact, and a majority of employers plan to significantly boost reskilling efforts in coming years. The example of Fortune 500 companies like JPMorgan Chase, which is training every new employee on AI, or Walmart and PwC, which have upskilled tens of thousands of staff, shows that scaling upskilling is achievable when treated as a strategic priority. In practice, it’s a combination of strong leadership support, innovative L&D design, and a culture that celebrates learning.

As artificial intelligence reshapes industries, companies are recognizing that success depends on an AI-ready workforce. Surveys show a significant gap between the need for AI skills and current training efforts. For example, four in five U.S. workers want more AI training, yet only 38% of U.S. executives say they are helping employees become more AI-literate. CEOs are investing in AI technology more than in people (57% vs 43% of CEOs, respectively), even though neglecting workforce development is seen as a mistake. In a 2024 BCG study, 89% of organizations said their workforce needs improved AI skills, but a mere 6% had begun upskilling in a meaningful way. Consequently, less than half of workers feel confident using AI in their jobs (only 47% do) and just 23% feel “completely” trained on AI. There is also a stark perception gap: while about 72% of employers believe their staff is adequately trained on AI, only 53% of employees agree. This shortfall erodes trust – in one survey 88% of workers said they don’t trust their employer to support them in learning about AI. Many employees are taking initiative on their own; in Japan, for instance, just 34% of professionals say their company encourages AI use, and nearly one-third have paid out-of-pocket for AI training or tools to keep up. The message is clear: broad, effective upskilling is imperative. Organizations that remain people-centric – training and empowering their workforce alongside adopting new tech – are best positioned to thrive. Research by Great Place To Work found that companies where more employees participate in innovation adapt to change faster and even achieve significantly higher revenue growth than peers. As one executive cautioned, if AI exploration is confined only to the IT department, “the effort will fail” – the entire enterprise must understand and engage with AI.

Leading Fortune 500 companies and high-performing organizations are taking innovative approaches to skill their workforce for the AI era. Rather than relying on traditional one-off training, they blend unconventional, in the flow-of-work learning activities that meet employees where they are. Below are key strategies observed among companies successfully adopting AI, often in combination:

Top organizations ensure AI training isn’t limited to technical teams, but offered universally. For example, consulting firm KPMG launched a “GenAI 101” program that introduces all employees to key AI concepts – how AI can be applied in the workplace, the basics of effective AI prompts, and the risks and ethics of AI – with a required follow-up course on “Trusted AI” ethics. Marriott International similarly emphasizes general digital literacy as a foundation for all associates, integrating learning & development into frontline roles to prepare every employee for the future. Some firms have even made AI learning part of onboarding: JPMorgan Chase, the largest U.S. bank, now requires all new hires to undergo AI training, including prompt engineering, “to get them ready for the AI of the future,” according to its Asset & Wealth Management CEO. By establishing a common level of AI and digital understanding enterprise-wide, these organizations create a workforce that can actively participate in AI adoption.

Rather than solely formal classes, successful companies embed learning opportunities into employees’ day-to-day jobs. This reflects a broader trend to integrate work and learning so tightly that upskilling happens continuously on the job. A Deloitte study notes that rapid changes in work are “making [learning and work] more integrated and connected than ever before,” prompting companies to build “work-centered learning” programs where people upgrade skills in the natural course of their daily tasks. In practice, firms implement regular events and on-demand resources to keep AI learning ongoing. Ally Financial, for instance, holds quarterly “AI Days” where employees hear from experts and see live demos of AI tools, and it has created an internal AI Community with monthly office hours for staff to consult in-house data science experts. This approach encourages employees to bring real work questions and learn AI applications as needs arise. Another example is Adobe, which treats its employees as “customer zero” – staff across departments are enlisted to beta test new AI features (like the Firefly generative AI in Photoshop) and provide feedback. Thousands of Adobe employees have participated in over 30 product betas in a year, simultaneously honing their AI skills and co-creating new tools. By weaving experimentation and micro-learning into routine projects (with cross-functional “AI@Adobe” working groups to support and educate teams), Adobe enables in-the-flow learning. These examples illustrate how constant, applied learning – not just one-time training – helps workers adapt to AI on the fly.

Many leading companies foster circles of learning where employees learn from each other in a collaborative, real-time setting. Accounting firm Crowe created an “AI Guild” open to any employee, after realizing that the spread of AI can feel “scary” or overwhelming for people unfamiliar with the tech. Employees start with a basic generative AI course (covering fundamentals, ethics, and risks), then join the AI Guild to continue learning together through discussions and hands-on practice. Crowe now hosts over 10 such guilds – informal communities focused on various tech and business topics – which serve as “spaces for casual collaboration, networking, and experiential exposure across business units” for any interested employee. This community-first approach supports the way adults learn best: through social engagement, Q&A, and sharing use cases. Similarly, Ally’s AI Community and monthly expert “office hours” enable peer-to-peer learning, and Adobe’s cross-functional AI working group lets teams learn from each other’s experiments. Even on a large scale, companies are leveraging internal social platforms to facilitate knowledge exchange. Rocket Companies (parent of Rocket Mortgage) set up an AI ideas forum called “ChatRKT” where any team member can propose generative AI project ideas and see what others are working on – effectively crowdsourcing innovation and learning. By forming these learning circles, guilds, and forums, organizations tap into employees’ curiosity and create a support network so no one has to learn AI alone.

Companies successful with AI actively involve employees from all departments in exploring AI opportunities, rather than siloing innovation in an R&D lab. At Trek Bicycle, the adoption of AI began with a tech team but quickly expanded to a company-wide task force. Trek’s Advanced Technologies team spent months interviewing every department – from marketing to manufacturing – about how AI could improve their work, gathering employee feedback at all levels. The result was a list of nearly 40 concrete AI use cases addressing real workflow pain points, each developed with input from the relevant department and prioritizing employees’ well-being. This inclusive approach ensured everyone had a chance to contribute ideas and learn. The CIO of Ally Financial echoes this mindset: if AI experimentation is limited to the IT group, it will fail – instead, “the entire enterprise should understand it and be involved in the journey”. In practice, that means forming cross-functional AI teams or “tiger teams” that bring together IT specialists with business-unit staff. It also means creating avenues for bottom-up innovation (like Rocket’s idea portal) so that even front-line employees can suggest AI improvements. By democratizing AI exploration, these companies simultaneously upskill their people – every participant learns about AI applications in context – and surface more diverse use cases than a single team could alone. This strategy builds a culture where employees see themselves as co-creators of the company’s AI future, not passive recipients of automation.

To motivate busy employees to build new skills, some organizations use unconventional, game-based learning and incentives. A standout example is PwC’s “PowerUp” program – a firm-wide AI learning curriculum delivered through a live trivia game. Each month, PwC employees join a friendly quiz competition (“like pub trivia”) featuring questions on AI concepts, firm strategy, and tech trends, all drawn from PwC’s training content. With prizes and bragging rights on the line, the game has drawn over 9,000 participants per month across the U.S. and Mexico. This approach turns AI literacy into a social event and reinforces knowledge through repetition and play. Other firms have hosted hackathons or innovation contests to spur hands-on learning. For instance, Walmart partnered with an external program (Correlation One) to run data science bootcamps for employees – associates could sign up for a cohort-based “Data Science Bootcamp” that prepares them for analytical roles at Walmart. Walmart actively identified employees with aptitude to upskill, enrolling them in this intensive program (free to the employee) which provides a monitored learning experience and even pipelines graduates into new internal AI roles. By making the training experience engaging – whether through gamification, competition, or cohort camaraderie – companies like these increase voluntary participation. The payoff is higher employee engagement and faster skill uptake, as workers are excited to build new capabilities instead of viewing it as a mandatory chore.

Several forward-looking enterprises have invested in comprehensive, multi-year upskilling initiatives to future-proof their talent. Professional services firm PwC is a notable example: back in 2017, PwC launched a $3 billion global “New World, New Skills” program aimed at upskilling its entire workforce in digital and AI skills. Over three years, PwC delivered immersive training in data analytics, automation, and AI to 37,000 employees, significantly raising the organization’s tech fluency. Rather than hire hundreds of external AI experts, PwC chose to retrain its existing staff – a strategy that not only filled skill gaps but also boosted employee loyalty and morale by investing in their growth. A key to PwC’s success was tracking and visibility: they built a culture of learning by actively discussing training goals with employees, highlighting those who completed courses, and monitoring progress so they could encourage wider participation. Over time, PwC even open-sourced parts of its upskilling program to clients and the public, and reports training over 8.3 million total “learner sessions” worldwide (including people outside the firm) in these AI and digital courses. Similarly, Walmart (the world’s largest company) rolled out its “Upskill 2025” effort and other programs to train employees for the future – its Correlation One data science academy is one example showing Walmart’s commitment to moving store and corporate associates into more advanced tech roles. These large programs typically combine online learning platforms, in-person workshops, and certifications. Critically, leadership commitment is high and budgets are substantial, treating workforce upskilling as a strategic imperative. The result is that companies like PwC and Walmart have a talent pipeline ready to leverage AI, rather than being caught in the talent shortage scramble. Indeed, research finds companies that heavily upskill are better able to deploy AI at scale, whereas lack of employee skills becomes a “major bottleneck” for AI adoption in less prepared firms.

Successful AI adopters also recognize that training must address mindset and trust, not just technical skills. Many workers are anxious about AI’s impact on jobs or unsure about its ethical implications. Top companies proactively educate employees on these topics to build trust and buy-in. For example, KPMG’s and Crowe’s AI training modules include dedicated content on AI ethics, responsible use, and risk management. Adobe formed an internal AI ethics committee and review board, including diverse employees, to oversee its AI initiatives and ensure they “enhance, not replace” human creativity. By being transparent about AI plans and emphasizing that employee input is valued in developing AI responsibly, Adobe reports high employee trust – 83% of employees at the “100 Best Companies” (which include Adobe) say people at their organization quickly adapt to change, far above the average elsewhere. Leading companies also communicate clearly how AI will be used. PwC’s leadership, for instance, framed their upskilling as helping employees thrive alongside new tech, not a pathway to layoffs. And at JPMorgan, CEO Jamie Dimon openly wrote to employees that AI’s impact will be as transformative as the steam engine or internet – but assured that while AI may automate some tasks, it will “augment virtually every job” and create new opportunities. This candid messaging, paired with training, helps employees view AI as a tool they will harness (with new skills) rather than a threat. In short, companies winning with AI put just as much effort into culture and confidence-building as they do into technical instruction. This high-trust environment encourages employees to experiment with AI tools and continuously learn, creating a virtuous cycle where the workforce actively accelerates AI adoption rather than resisting it.

Experts and business leaders broadly agree on the key skills and competencies that employees need to develop (or update) to thrive in an AI-prevalent future. These include a mix of technical aptitudes and human-centric skills:

A baseline understanding of how AI works and the ability to use AI tools are now fundamental for most roles. This doesn’t mean everyone must be a programmer, but employees should know the capabilities and limitations of AI relevant to their job. For example, workers are learning how to craft effective prompts for generative AI (a skill JPMorgan is explicitly training all new hires on) and how to interpret AI outputs critically. “AI literacy” also involves knowing basic terminology (models, algorithms, etc.) and being able to experiment with tools like ChatGPT, Microsoft Copilot, or industry-specific AI software. In a Harvard survey, the top skills for entry-level employees included prompt engineering and familiarity with AI tools, underscoring that interacting with AI systems is becoming a core competency. The workforce consensus is that continuous learning is part of AI literacy – since AI tech evolves rapidly, individuals must be able to adapt and pick up new tools over time. Companies are facilitating this by offering on-demand learning resources and encouraging a growth mindset toward technology.

the ability to read, analyze, and draw insights from data – is often cited as the single most important skill for the general workforce. AI systems run on data; employees at all levels need to be comfortable working with data outputs to make informed decisions. A global study found that business leaders and employees alike predict data literacy will be the most in-demand skill by 2030, with 85% of executives saying data skills will become as vital as computer skills are today. Data literacy means being able to interpret charts, understand basic statistics or probabilities, and ask the right questions about what the data (or an AI’s analysis of it) is showing. Not everyone will be a data scientist, but everyone will need to use data in their role – indeed, 89% of executives now expect all team members to be able to explain how data informs their decisions. This skill underpins effective use of AI because employees must feed AI systems with quality data and interpret AI-driven insights correctly. As one innovation VP put it, “we need to help [employees] develop skills to add value to the output of intelligent algorithms” – meaning workers should augment AI results with human judgment, context, and critical thinking. Many companies respond to this by rolling out data literacy programs (though the training is often still too concentrated on specialists). Given the gap – only 11% of employees feel fully confident in their data literacy today – boosting data skills across functions (including HR, finance, marketing, etc.) is a priority in future-ready workforce strategies.

For certain roles, deeper expertise in AI development and data science will be needed. The industry is experiencing a surge in demand for AI specialists, including machine learning engineers, data scientists, big data engineers, and related roles. The World Economic Forum projects demand for AI and ML specialists will grow by 40% by 2027, with big data engineers and data scientists increasing ~25%. Companies cannot hire enough of these experts, leading many to reskill internally. For example, some organizations are cross-training software developers or statisticians into AI roles. However, as one tech leader noted, true AI expertise often requires significant specialization and hands-on experience. This means even within technical teams, ongoing training is needed in areas like building machine learning models, understanding AI architecture, and coding for AI. Businesses like IBM have launched internal “AI Academies” and provide courses on topics such as computer vision, natural language processing, and AI engineering. On a broader scale, many Fortune 500 employers estimate ~40% of their workforce will need reskilling in the next 3 years due to AI and automation changes – a figure that includes retraining people into entirely new tech roles. Technical skills in cloud computing, coding (Python, R), data management, and cybersecurity also become more important as AI systems must be implemented and safeguarded – and companies are blending these into their upskilling curricula.

With great power comes great responsibility – AI ethics, governance, and risk management have emerged as must-have knowledge areas. As AI is deployed in sensitive processes (like hiring, lending decisions, or medical diagnosis), employees at all levels should be aware of issues like bias in AI, privacy implications, and compliance requirements. The “future of work with AI” will likely be heavily regulated and scrutinized, so a culture of ethics is a skill in itself. Leading companies already train their workforce on AI ethics: e.g., KPMG’s “Trusted AI” course ensures employees understand guidelines for ethical AI use, and many firms have internal AI ethics committees that involve employees (Adobe’s ethics board is an example). Workers are taught to question AI output, flag potential problems, and make decisions with transparency. This skill set goes hand-in-hand with critical thinking – the ability to not take AI results at face value and to consider broader societal impacts. As generative AI becomes prevalent, employees also need guidance on intellectual property rules, data security (e.g. not inputting confidential info into public AI tools), and company policies for AI use. In short, an employee who is “AI fluent” must also be versed in what not to do with AI. Training programs now commonly include modules on AI ethics and safe usage because employers want a workforce that can help monitor AI’s proper use and maintain trust with customers and regulators.

Ironically, the more work we automate, the more human skills gain importance. Abilities that AI cannot easily replicate – creativity, innovation, problem-solving, communication, leadership, and empathy – are increasingly crucial. These are the skills that allow employees to partner effectively with AI. For instance, AI can churn through data and generate insights, but a human with domain expertise and creativity will envision how to use those insights in new products or strategies. Critical thinking and curiosity drive employees to ask the right questions that direct an AI’s analysis. Collaboration and emotional intelligence remain key in workplaces where teams include both humans and AI tools; employees must excel at the things like teamwork, customer understanding, and ethical judgment that technology alone can’t handle. Many future-of-work reports highlight adaptability and lifelong learning as essential skills – since job roles will evolve continuously, workers need the resilience and mindset to constantly learn new things. Companies such as Unilever and IBM have explicitly started to evaluate and train for “learnability” and soft skills, anticipating that technical skills may change but these human capabilities will endure. Even in tech-heavy fields like banking, leadership is training managers on how to integrate AI into decision-making while still motivating and mentoring their teams. In summary, the consensus is that hybrid skills will define the successful AI-era employee: a blend of technical/digital proficiency and strong soft skills. As one World Economic Forum insight put it, employees will be expected to augment machine intelligence with human creativity and critical thinking – so both aspects must be developed.

Conclusion

Design the enterprise for human-machine teaming, not tool deployment. Set an evidence-based narrative, make AI literacy universal, move learning into the work, operationalize responsible-AI guardrails, and track progress through velocity, capacity, and capability. Do this, and people don’t brace against the future—they shape it—turning AI from a point technology into a system that continuously amplifies human potential and organizational performance.

Sources and references

Macro impacts of skills & AI adoption

  • “Each additional year of schooling yields ~9–10% private wage returns.” — Meta-analyses / global reviews: ~9% (World Bank review) and ~8–9% (recent meta-study). (Open Knowledge Portal)
  • “EU: a 10-ppt reduction in low-skilled adults raises long-run GDP per-capita growth by ~0.1 ppt.” — Cedefop, Investing in skills pays off (macro model). (CEDEFOP)
  • “Accelerated upskilling could add ~$6.5T to global GDP by 2030.” — WEF/PwC Upskilling initiative (press release + program page). (World Economic Forum)

Skills and innovation, growth

  • Bessen, J. (2015). Learning by Doing: The Real Connection Between Innovation, Wages, and Wealth. Yale University Press.
  • Argues that technological progress raises productivity and wages only after firms and workers acquire tacit skills through learning and process redesign.
  • Bessen, J. E. (2019). “AI and Jobs: The Role of Demand.” NBER Working Paper No. 24235. National Bureau of Economic Research.
  • Explores how AI adoption interacts with labor demand, emphasizing the complementarity of skills and technology in driving diffusion.
  • Bessen, J. E. (2022). “The New Goliaths: How Corporations Use Software to Dominate Industries, Kill Innovation, and Undermine Regulation.” Yale University Press.
  • Extends his earlier thesis, showing that organizational learning in software ecosystems determines who captures value from innovation.
  • Ding, J. (2023). Technology and the Rise of Great Powers. Oxford University Press.
  • Develops the concept of “diffusion capacity” to explain why some states turn inventions into systemic advantage—linking national power to institutional and skill-based diffusion mechanisms.
  • Ding, J. (2021). “Decoding China’s AI Dream: The Context, Components, Capabilities, and Consequences of China’s Strategy to Lead the World in AI.” Oxford University, Future of Humanity Institute Paper.
  • Precursor study elaborating on diffusion infrastructure and institutional readiness as determinants of AI competitiveness.
  • Bresnahan, T. F., & Trajtenberg, M. (1995). “General Purpose Technologies: ‘Engines of Growth.’” Journal of Econometrics, 65(1), 83–108.
  • Foundational reference for Ding’s framework on general-purpose technology diffusion and systemic economic transformation.

Country evidence cited

  • India: “Advanced digital skills contribute ₹10.9T (~$507.9B) annually.” — AWS-commissioned AlphaBeta/Gallup study, widely reported (ET, Manufacturing Today). Note: the study’s USD figure is model-based, not a spot INR→USD conversion. (The Economic Times)
  • China: “61M new technicians since 2012; ‘core’ digital economy = 9.9% of GDP (2023).” — China Ministry of Education summary; NBS press release (core digital-economy value-added). (Ministry of Education China)
  • Japan: “AI adoption + retraining could unlock ¥148.7T (~$1.1T) by 2035.” — Access Partnership & GLOCOM study (also cited by Google Public Policy). (Access Partnership)
  • United States: “GenAI could lift GDP by ~$3.8T by 2038 (+~0.84pp to annual growth).”
    — Microsoft/Accenture white paper & post. (Microsoft)
  • European Union: “GenAI could add €1.2–€1.4T (~+8%) within 10 years.” — Implement Consulting Group report commissioned by Google (report + overview). (cms.implementconsultinggroup.com)

Talent supply / shortages

  • “~70% of Japanese firms report critical tech-talent shortages.” — Linux Foundation 2025 State of Tech Talent Japan: “more than 70% of organizations [are] understaffed across key areas.” (Linux Foundation)
  • “U.S. companies struggle to hire AI engineers (~two-thirds).” — Closest large-sample references: O’Reilly enterprise surveys flag talent as a top barrier; Spiceworks/CompTIA report widespread hiring challenges (range ~63–87%). (No single authoritative 65% statistic; these are the strongest adjacent sources.) (O'Reilly Media)
  • “India faces a large AI talent shortfall by 2026.” — Wheebox India Skills Report and TeamLease Digital point to ~1M demand and a widening gap (~53% by 2026). (Your ‘1.4M shortfall/-0.7pp growth’ assertion isn’t directly sourced in public reports.) (The Economic Times)

Labor-market effects & “AI pessimism”

  • “NY Fed employer surveys: limited layoffs so far; retraining more common; hiring impact modest.” — Liberty Street Economics 2024 & 2025 posts + coverage. (Liberty Street Economics)
  • “Robots and jobs in Japan: firm/industry data show employment rises with robot adoption.” — Adachi, Kawaguchi & Saito (Journal of Labor Economics, 2024) and related working papers. (IDEAS/RePEc)
  • “Japan second-largest robot installer; China ~6× Japan.” — IFR World Robotics (2024–2025): China 276k installs (2023); Japan ~46k (2023); Japan still #2. (IFR International Federation of Robotics)

Attitudes, literacy & the charts in your paper

  • Figure 15 “Emotions toward AI across countries” and Figure 7 “AI knowledge/efficacy/training” are from: Trust, attitudes and use of AI: A global study 2025 (University of Melbourne & KPMG). (KPMG Assets)
  • Scatter “% Nervous vs. % Excited” (32-country base 23,685; April 19–May 3, 2024) is from: Ipsos AI Monitor 2024. (Ipsos)
  • Regional optimism gaps you quote (e.g., higher optimism in China/Indonesia/Thailand vs. lower in Canada/US/Netherlands) are consistent with the KPMG/Melbourne country tables and the Ipsos monitor. (KPMG Assets)

How fast skills are changing

  • “Skills in AI-exposed jobs are changing ~66% faster.” — PwC Global AI Jobs Barometer 2025. (PwC)
  • “~70% of the skills used in most jobs will change by 2030.” — LinkedIn Economic Graph Work Change Report 2025. (Economic Graph)

Training & confidence gaps

  • “Four in five U.S. workers want more AI training; only ~38% of U.S. executives say they’re helping; CEOs investing more in tech (57%) than people (43%).” — Great Place To Work summary (synthesizes LinkedIn/Microsoft WTI data & CEO surveys). (Great Place To Work®)
  • “<1/3 of companies have upskilled even 25% of their workforce on AI.” — BCG 2025 (Closing the AI Impact Gap / AI Radar 2025). (Boston Consulting Group)
  • “Employees’ AI use is ahead of employer enablement (shadow AI, low training).” — KPMG/Melbourne 2025 global study (47% trained), Microsoft Work Trend Index 2024. (Business Insider)
  • “Japan: only ~34% say their company encourages AI use; many pay out-of-pocket.” — Udemy 2025 Japan skills report. (About Udemy)
  • “88% don’t trust their employer to support them in understanding AI.” — JFF’s worker survey (context on employer-provided AI skilling). (Jobs for the Future (JFF))

Data literacy stats

  • “Data literacy will be ubiquitous expectation; 89% of C-suite expect staff to explain how data informed decisions; only ~11% of employees feel fully confident.” — Qlik/Data Literacy Project report (The Upskilling Evolution) + summaries. (The Data Literacy Project)

What leading companies are doing

  • JPMorgan Chase — “Every new hire will get prompt-engineering/AI training” (Investor Day comments; press). (Bloomberg)
  • KPMG — internal “GenAI 101” and required “Trusted AI” ethics module. (Great Place To Work®)
  • Adobe — employees as “customer zero” for Firefly & other AI features; active AI ethics governance. (Great Place To Work®)
  • Ally Financial — quarterly AI Days and AI Community/Office Hours for in-the-flow learning. (MediaRoom)
  • Rocket Companies — internal idea forum “ChatRKT” for employees to propose GenAI projects. (pubfiles.greatplacetowork.com)
  • Walmart — large-scale Correlation One Data Science Bootcamp for employees/prospective hires. (correlation-one.com)
  • Great Place To Work “Innovation By All” — inclusive innovation cultures deliver ~5.5× revenue growth vs. peers (basis for your “participation in innovation → faster adaptation & growth”). (Great Place To Work®)