According to a study of companies around the globe, the majority of organizations are not equipped to guide their employees through the rapid adoption and use of artificial intelligence technologies.
According to the study 79% of companies report that their workforces are not prepared to use GenAI effectively. Experts warn that this gap in readiness may undermine productivity and competitiveness.
The Institute for Corporate Productivity’s (i4cp) report Workforce Ready in the Era of AI highlights both the opportunities and challenges presented by AI. The report shows that while AI adoption has almost doubled in HR from 22% to 41% by 2024, organizations are still struggling to equip their employees with the necessary skills and scale it effectively.
Workforce Fears & Readiness Divide
The report found that employees experience a paradox as companies adopt AI. The report found that those working in organisations scaling AI were more likely to be trained, but also twice as afraid of being replaced by technology.
The study found that 55% of employees at AI-intensive companies are concerned about losing their jobs, as opposed to only 25% in organizations who have not yet explored AI’s potential.
The report highlights a significant divide between those companies that are integrating AI into their workflows, and those who are lagging behind. The report shows that organisations in advanced stages of AI implementation have better market performance. This highlights the competitive advantage of having an AI-ready staff.
The Key to AI Training
The i4cp Report says that top global companies are addressing skills gaps through innovative training programs. The accounting giant EY for example introduced AI foundational training as part its development program, with more than 14,000 employees participating in AI coursework during the first month.
ServiceNow, a software firm, improved the efficiency of its workflow by training staff to use AI tools. This reduced case review time by 37%.
Zillow, an online property marketplace, launched an AI Learning Lab that combines live sessions and hands-on tutorials for employees to learn how to integrate AI in performance reviews and productivity workflows.
The report emphasizes that AI readiness is not sufficient. For improving market performance, a future-ready workforce – one that is capable of adapting to changes in technology and the market – is just as important as AI specific skills.
HR’s role in scaling AI
Human resources departments play a pivotal role in AI integration. According to the i4cp Report, high-performing organizations are four times as likely to include HR in AI governance and two times as likely to have them lead change management initiatives.
It says that companies like BNSF and Unilever show how HR can drive AI adoption through employee engagement and aligning the training with organisational objectives.
Agentic AI: The Next Frontier
The report highlights the future rise of agentsic AI, technologies that can perform complex tasks automatically. To prepare for this shift, employees must learn to collaborate with AI systems and design workflows.
Recommendations to Organisations
The i4cp Report advises organizations to:
- Encourage employees to identify tasks that can be automated by AI.
- All levels of the workforce should be trained in AI, including leaders.
- Agile workforce planning is a dynamic way to deal with skills gaps.
- Create a culture that encourages adaptability and continual learning.
A range of experts in the industry say that AI’s rapid development is both an opportunity and challenge for businesses. The organisations that put a priority on workforce readiness, integrate future-focused training, and empower HR to be the leader of AI initiatives are better positioned to navigate disruption in this era.
