Closing the AI skills gap: Strategies for business success and innovation

Dr Drew MacFarlane, head of GSMA Advance, has explained the current skills gap in AI adoption and how businesses can tackle it.

In his 1932 work, In Praise of Idleness, Bertrand Russell – philosopher, intellectual and pipe smoker – envisioned a post-industrial future where technological advancements untethered people from long work hours, freeing them to pursue intellectual, artistic, and social interests. Machines would grunt and groan so that we could lounge and laze.

In the 1960s, the argument transformed from one of optimistic possibility to moral panic – computers were to lay waste to people’s livelihoods. Robert Holloman, a senator attending the 1968 US Senate hearing on labour and public welfare, worried that “machines are encroaching so rapidly and completely that … we will be unable to find a word suitable to describe the frightful impact of the automation in the next several years upon almost every large industrial employer”. Instead, myriad new industries grew where people’s jobs were, paradoxically, to work with those computers. Artificial intelligence (AI) is the latest in a long line of technological enhancements to have us in the throes of a moral and technological panic. But if history can be a yardstick, businesses should be preparing themselves to work with AI, and employees attuning themselves to the professional opportunities that it presents.

AI is revolutionising industries across the globe, opening up unprecedented opportunities for innovation and efficiency. From automating routine tasks to providing deep insights through data analysis, AI is enabling businesses to operate smarter and more effectively. However, as AI continues to evolve, a significant skills gap is emerging, posing challenges to fully harnessing AI’s potential. Among the most prevalent challenges are workforce displacement, innovation stagnation, economic inequality, security risks, and educational hurdles.

The skills gap has arisen due to several key factors. Firstly, the rapid pace of AI development has outstripped the speed at which educational institutions and training programs can adapt, leaving a shortage of qualified professionals. Secondly, the interdisciplinary nature of AI, which combines elements of computer science, mathematics, and domain-specific knowledge, requires a diverse skill set that is not yet widely available. According to a study by IBM, 40 per cent of the global workforce will need to reskill as a result of implementing AI and automation over the next three years. Lastly, there is a lag in the upskilling of the current workforce, many of whom need to acquire new competencies to stay relevant in an AI-driven world. In a survey by the Society for Human Resource Management, 55 per cent of employees stated they need more training to do their jobs better, and 76 per cent said they would be more likely to stay with a company that offered continuous learning.

The emergence of the AI skills gap

The AI skills gap presents both challenges and opportunities for businesses. While it highlights the need for reskilling and upskilling, it also underscores the importance of aligning AI initiatives with business objectives to drive innovation and competitiveness.

Moreover, addressing the AI skills gap is crucial for ensuring the ethical and responsible use of AI. Companies must develop and implement policies that balance innovation with regulation to ensure safe AI deployment. Ethical AI practices, such as addressing biases, protecting privacy, and maintaining transparency, are essential for building trust and fostering sustainable growth. This will be particularly important for marginalised and under-represented communities, who can disappear under the weight of big data. A report by McKinsey suggests that, deployed irresponsibly, generative AI could widen racial inequality gaps in the US by $43 billion each year, while Accenture has noted that with 8 million people in the UK currently lacking digital skills, we risk leaving behind large sections of society – particularly women, those from low socioeconomic backgrounds and those from minority ethnic groups.

To bridge the AI skills gap, businesses must develop a comprehensive AI strategy that aligns with their objectives. This involves assessing current workforce skills to identify gaps and implementing targeted upskilling and reskilling programs. Leveraging AI tools for skills assessment can provide precise insights into workforce capabilities and areas for improvement. Collaborating with external partners, such as academic institutions and non-profits, can expand the reach and effectiveness of these programs.

Like all learning, upskilling in AI should be seen neither as a one-off nor a fixed event. Flexible learning is crucial in ensuring the success of these initiatives. Investing in training by allocating sufficient resources for continuous learning and development programs is essential. Promoting a culture of lifelong learning encourages continuous improvement and adaptability among employees. And, just as we saw with previous “machine revolutions”, balancing technical AI skills with soft skills like communication and problem solving is needed. Indeed, as a study from Dell notes, among Gen Z, there is a concern about whether they have the soft skills to be successful.

Addressing the AI skills gap: Strategies and solutions

Addressing the AI skills gap opens up substantial market opportunities. Businesses with a skilled AI workforce can drive innovation, enhance competitiveness, and contribute to significant economic growth. The AI market is projected to reach between $780 billion and $990 billion by 2027. Companies can leverage AI to improve customer experiences through personalised services and efficient problem solving. Additionally, AI enables the creation of new business models and revenue streams, particularly in sectors like healthcare, finance, and retail. By addressing the AI skills gap, businesses position themselves for long-term success and can expand into new markets by understanding and meeting the needs of diverse customer bases.

Ultimately, a skilled AI workforce is the cornerstone of long-term success and global leadership in the evolving technological landscape.

Dr Drew MacFarlane is head of GSMA Advance.