Only 3% of organisations claim to be adequately prepared for the impending AI-driven revolution in skills development, as revealed in a recent dipstick survey conducted by People Matters and Skillsoft under the theme "Strategizing for Skills Transformation." This statistic underscores the substantial challenge ahead for organisations in adapting to this transformation.

AI-led disruption is one of the major shifts that is changing how companies view jobs and skills. In today's ever-evolving business landscape, organisations are presented with a unique opportunity to redefine their approach to skill transformation. The ability to remain agile and competitive hinges on how effectively companies can navigate the rapidly changing demands of the workforce.

As organisations continue to evolve and navigate the challenges, the commitment to skill transformation and the integration of these insights will be instrumental in shaping the future of workforce development. It is a future where adaptability, continuous learning, and strategic partnerships will be the keys to long-term success and resilience.

The dipstick study surveyed about 100 companies on what are their top focus areas when it comes to skills transformation. 

Here are some of the key findings from the study:

Top challenges in learning

Difficulty in measuring the effectiveness of learning problems was the top-most challenge (56%), and lack of alignment between skills transformation initiatives with the overall business strategy (44%). It was followed by resistance to change from employees and stakeholders (44%). 

The intricacy of the requisite skills, the absence of standardised approaches, and the intricate interplay between skill enhancement and business outcomes collectively contribute to business impact.

Many organisations still struggle to measure the tangible impact and effectiveness of their L&D efforts. When L&D efforts are not closely integrated with the organisation's strategic goals and objectives, they may fail to address the specific skills and competencies needed to drive the business forward. This misalignment can result in wasted resources and missed opportunities for growth and innovation.

In some cases, employees may be resistant to new learning initiatives because they are afraid of the unknown or because they don't see the need for change. Stakeholders, such as managers and executives, may also be resistant to change if they don't see how it will benefit the organisation.

 The importance of strategic partnerships

Strategic alliances offer substantial benefits for skills enhancement, especially for organisations navigating rapidly evolving industries, but only 22% extensively engage with partners. While a large majority of 86% of organisations already work with Skills partners, 64% said they engage only to ‘some’ extent.

The prevalence of organisations employing partners to varying degrees underscores a favourable environment for learning and knowledge exchange. Collaborating with external partners can bring forth fresh perspectives, diverse insights, and specialised resources that enrich the overall process of skills transformation.

70% of organisations consider expanded learning resources and content as a top benefit, highlighting the crucial role that strategic partnerships play in diversifying and enriching the learning experience. 62% of organisations see access to specialised expertise as a key benefit, underscoring the value of partnering with subject matter experts and industry leaders.

The rise of AI in learning

The utilisation of AI and ML for automation within the realm of Learning and Development (L&D) presents numerous advantages for L&D leaders. It accelerates the creation of curricula, extends the reach of learning programs, and enhances the overall quality of learning pathways.

A notable advantage is the streamlining of content curation and precise delivery. Through the utilisation of job architectures, roles and their corresponding skill sets become clearly delineated. AI/ML content tagging simplifies the conversion of this data into actionable curricula.

70% of the organisations felt that AI is either moderately or significantly impacting certain skills in their industry. Only 21% of them noted that AI is having minimal impact. 8% are unsure.

This shift towards AI-driven content curation and skill mapping reflects the evolving landscape of workforce development, emphasizing the need for organizations to adapt and harness the potential of these technologies to remain competitive in their industries. As AI continues to advance, its transformative effects on skill acquisition and industry dynamics are likely to become even more pronounced in the years to come.

 To understand how to tackle some of the challenges and shifts, Watch out this space for the link to the complete report.