Nearly half of workers worry automation will make them obsolete. Many also recognize its potential benefits. Those fears aren’t entirely unwarranted. The labor market is in the middle of a massive shift, not only in the way people work but also in what their daily work entails. Employees have already adapted to automation and other technologies for hybrid and remote work. Now, they’re exploring how generative AI can enhance the workplace.
In its 2023 “Generative AI and the Future of Work in America” report, McKinsey estimates “that 11.8 million workers currently in occupations with shrinking demand may need to move into different lines of work by 2030.”
Despite the need for new skills and roles, many companies still face tight budgets. This makes it necessary for companies to develop those skills within their existing workforce. In the current economic climate, “employers must make the most of the skills their current employees possess by providing opportunities for upskilling and reskilling.”
What Is Upskilling?
When an employee upskills, they are seeking to expand their existing skill set. This helps enhance their current performance while also potentially offering advancement opportunities.
Generative AI is impactful because of its capabilities and accessibility. It presents a key opportunity, according to the Deloitte AI Institute:
“If humans can use Generative AI to complete tasks faster, easier, or better than they could before because the technology has certain skills, then we can start to assign tasks differently. This is a key to success—technology is not directly replacing jobs; rather it’s changing.”
Companies must focus on future-proofing their businesses to stay competitive. To do so, they must be agile while adapting quickly and effectively to inevitable changes. They must give employees opportunities to learn new skills and transition into new roles. This will empower them to keep on the cutting edge of their fields. In turn, workers can explore new opportunities, increase their earning potential, and remain competitive.
Companies can offer internal opportunities through development and mentoring programs, while also providing reimbursement and dedicated time for employees to pursue external certifications and courses. These demonstrate a commitment to employee growth and career advancement, which also enhance engagement and retention.
What Is Reskilling and How Is It Different From Upskilling?
On a broad scale, upskilling helps address what the World Economic Forum calls a “growing skills-gap crisis,” where 44% of workers’ skills are expected to be disrupted in the next 5 years. Furthermore, “6 in 10 workers will require training before 2027.”
Upskilling helps address skill gaps. Sometimes, however, entirely new skills are required. This is where reskilling comes in.
Reskilling means allowing an employee to learn new skills instead of replacing them with someone different. This often involves a lateral move into a new role, even without prior experience. It allows them to explore a fresh career path while gaining valuable, in-demand expertise.
Between 2019 and 2022, 8.6 million workers did just this by shifting occupations, with another 12 million expected by 2030. This shift may seem like jobs are disappearing, but it also creates new opportunities as more roles emerge.
How AI Is Influencing Upskilling and Reskilling
AI’s impact on “the great skills shift” is a combination of eliminating and boosting work: “prepare for a Generative AI future—readying their workforce for automation, strategizing for augmentation, appreciating human-centric skills, and even pioneering new roles.”
An MIT study found that ChatGPT helped workers save time and improve the quality of their output. Productivity improved by 37%, while lower-skilled workers also saw meaningful improvements in the quality of their work.
New technologies like Generative AI are paving the way for expansion in key industries based on increased demand and investment, and the skills required for those jobs are largely new. “A third of the essential skills in 2025 will consist of technology competencies not yet regarded as crucial to today’s job requirements.”
Investments in 5G, smart cities, and digital infrastructure continue to accelerate. Demand for skilled professionals is growing alongside them. In fact, the IT staffing market is expected to reach $583.11 billion by 2028 globally. The electricity demand is expected to grow 30% by 2030, and investment in smart grid devices or systems is expected to reach $6.4 million.
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