Upskilling & Reskilling in the Era of AI

As artificial intelligence threatens to eliminate some jobs and change the skills needed for others, upskilling and reskilling strategies are essential for businesses to have the workforce they need and for employees to stay relevant in the job market. Increasingly, these upskilling and reskilling initiatives are themselves leveraging artificial intelligence technologies to help employees and learners enhance their skill sets. Business priorities change and industries evolve, but that doesn’t always have to mean layoffs, restructuring, or other major organizational disruptions. With the right strategies in place, organizations can adapt their operations and position their people to succeed and thrive in a dynamic business environment.

What Is Upskilling?

Upskilling helps employees gain new capabilities and experiences so they can be more effective in their current jobs. Companies embrace upskilling to adapt to changes in their business, which could stem from a range of triggers, including the advent of new automation technologies, new competitors, declining satisfaction with customer service, or changing industry standards. For example, a consulting firm might upskill its analysts by training them on using generative AI to help them convey their ideas faster and with more clarity. Upskilling allows organizations to react to changes in the company or in the broader industry without severely disrupting their workforce.

What Is Reskilling?

Reskilling is when someone learns new skills to transition to a different field or career path. It’s sometimes required when an employee’s current role or skill set becomes obsolete because of changes in the business, economy, industry, or job market. Unlike upskilling, reskilling equips an employee with the new capabilities or technological proficiencies they need to change jobs, not to succeed in their current role.

Key Takeaways

• AI in upskilling and reskilling programs has the potential to help employees enhance their skills and advance their careers through more personalized and targeted training.
• Businesses can use AI to identify skills gaps, recommend new skills, and create tailored learning paths to improve the upskilling process.
• Employee development programs, including upskilling and reskilling, are highly valued by workers.

Why Is AI Important in Upskilling and Reskilling?

Artificial intelligence is an important component of upskilling and reskilling initiatives because it can help simplify and improve processes that would otherwise be tedious, difficult, and time-consuming. For employers considering whether their workforce needs to upskill and reskill, one big challenge is understanding what skills exist in the organization, who has those skills, and how those skills map to the jobs of tomorrow. Connecting those dots—employees to skills to jobs—without technology requires a lot of heavy lifting and manual work for both HR managers and employees. With AI, businesses can prepare for future skill requirements and emerging trends in the job market by proactively identifying skills gaps and designing upskilling and reskilling programs that align with workforce needs, now and into the future.

For employees, AI can provide personalized recommendations for what training would be most valuable in their current role or desired career path. Upskilling and reskilling programs are important for engaging and retaining workers, and AI can help improve the efficiency and effectiveness of these initiatives. A recent Gallup poll found that nearly half of US employees are open to improving their existing skills and eager to embrace new ones. More than 40% of American workers surveyed said they highly value the career development programs offered by their employer while 48% said they’d be open to a career change if the employer offered skills training opportunities. But that same poll also found that only 2% of chief human resources officers strongly agree that their upskilling initiatives are actually cultivating the skills that employees will need in the future. Technologies such as AI can help organizations fill skills gaps and make employee training programs more beneficial to both businesses and their workers.

10 Ways to Leverage AI and Other Emerging Tech in Upskilling

From personalized learning experiences and adaptive content to predictive analytics and real-time feedback, AI can play a significant role in upskilling and reskilling programs, helping businesses keep their workforce ready to navigate industry changes and allowing them to give employees the kind of growth opportunities that boost retention.

1. Skill assessment and analytics

The first step in any upskilling or reskilling program is to determine what skills exist in the organization today. AI embedded in human capital management software can assess a workforce’s talent profiles and catalog an organization’s skill set. And, importantly, using AI allows skills assessment to be a continuous process rather than a once-a-year (at best) activity. AI can help the CHRO’s team not only assess existing skills but also identify specific areas where employees may have gaps in their knowledgebase. For example, AI could review a company’s job postings, spot if a new programming language or business skill is being listed more often, and then review the talent profiles of employees in similar roles to look for that skill. By pinpointing potential gaps and areas for improvement, HR managers can tailor upskilling and reskilling programs to the company’s needs more effectively.

2. Personalized learning paths

AI algorithms can analyze massive amounts of data about employees’ skills and goals and compare it with information about what skills the company most needs. AI-powered platforms can also tailor learning materials and experiences to each employee in line with company needs, which can help make upskilling and reskilling efforts more effective. Having insight into skills development needs across the organization helps CHROs consider the best options for learning, which could include formal training, mentoring, or short-term projects.

3. Adaptive learning platforms

AI can continually monitor changes in employee interests and a business’s priorities and adapt learning recommendations accordingly. Similarly, AI can adjust the difficulty level of learning content based on how an employee is progressing through the material, ensuring that they’re being challenged but not overly so. The goal is to prevent boredom or frustration while encouraging engagement.

4. AI-powered content curation

AI technologies can help identify content that’s part of an employee’s learning path and figure out what content to pull together to help employees complete their path as soon as possible. These AI-powered content models sift through vast amounts of educational content, such as online courses, articles, videos, and tutorials, to recommend the resources and materials that are most aligned with an employee’s interests and company objectives.

5. Virtual assistants and chatbots

AI-powered virtual assistants and chatbots can manage a range of tasks within upskilling and reskilling initiatives and provide scalable support to a large number of people. For example, a virtual assistant can be used to deliver personalized learning experiences and content and also administer quizzes, assessments, and surveys. Using generative AI, chatbots can provide feedback, coaching, and encouragement to employees as they progress through their upskilling or reskilling journey.

6. Simulation and gamification

Simulations and gamified activities can help shape the learning experience for employees, allowing them to get immediate feedback on their performance through realistic scenarios and challenges that require complex problem-solving and decision-making skills. These activities also let employees practice and reinforce new skills in a controlled and risk-free environment.

7. Predictive analytics for training ROI

Predictive analytics can help businesses plan ahead for what skills gaps might arise and what new skills might be needed in the future. Algorithms can look at attrition trends and retirement rates to determine future talent needs, letting HR assess how much upskilling and reskilling training is needed to fill gaps. AI models could also analyze an employee’s learning data to predict their future performance and areas where they might struggle, enabling HR managers to proactively intervene and provide additional support. For example, identifying which employees are at risk of leaving could let HR intervene with upskilling opportunities that keep those employees engaged, thus delivering a strong training ROI by avoiding the cost of replacing a worker.

8. Natural language processing for feedback and coaching

Upskilling and reskilling programs are more effective if an employee receives feedback and coaching, and natural language processing (NLP)—a branch of AI—can help deliver those things at scale. Organizations can use NLP to provide employees with personalized support as they engage in upskilling or reskilling activities, including tailored tips, suggestions, and reminders to help them stay motivated and meet their goals. Virtual assistants and chatbots rely on NLP.

9. Augmented reality (AR) and virtual reality (VR)

AR and VR technologies are related delivery mechanisms for the learning, mentoring, and training that are part of upskilling and reskilling programs. Augmented reality uses special headsets or glasses to overlay digital elements on a physical space, such as digitally showing a machine repair technician where a given component is on the physical machine. Virtual reality lets people learn in entirely digital environments. While AI is what gives employees the insights, recommendations, and actions for training, it’s channels such as AR and VR that can help make the material and learning experience more impactful.

10. Continuous learning and adaptation

AI can play a key role in helping businesses plan ahead for potential changes in employee skill requirements and organizational needs by supporting a culture of continuous learning. When employees engage in ongoing skills development and training, they improve their skills over time while also keeping a closer pulse on what’s ahead. AI can help by predicting what new trends are around the corner, consistently recommending relevant training options, and identifying which employees are best suited to learn new skills or fill roles the company will need in the future.

Leverage AI to Upskill Your Workforce with Oracle

AI is playing an increasingly significant role in upskilling, reskilling, and similar employee development initiatives. With its ability to personalize learning experiences, deliver adaptive content, and provide real-time feedback, AI can help make learning more accessible, effective, and relevant to individuals seeking to adapt to the evolving demands of the modern workforce.

Oracle Grow consolidates the essential elements for employee learning, skills development, and career advancement into one highly personalized application. As part of the Oracle ME employee experience platform, it can use the data and processes managed by Oracle Fusion Cloud HCM and the power of embedded AI to deliver personalized employee coaching and development insights. Oracle Grow comes with a comprehensive suite of features that can help boost employee engagement and empower workers to augment and advance their skills to adapt to evolving business needs, priorities, and expectations. As a cloud native platform, Oracle Grow ensures data is continuously updated to allow HR to make more informed and timely decisions. When learning, career growth, and talent mobility converge in a unified platform and are aligned with individual and organizational objectives, the entire company can flourish and easily respond to change.

AI in Upskilling FAQs

How is AI used in skill development?
AI makes it possible to personalize the skill development process by analyzing employee data to deliver content, resources, and activities that cater to individual needs and goals.

How can AI improve employee experience?
AI can improve the employee experience by recommending training on skills that are needed by the business and also of interest and relevant to the employee, thus providing career opportunities and development for a worker.