I had the opportunity to join the University of Notre Dame’s AI and Labor Policy Workshop, held in collaboration with Notre Dame’s Keough School of Global Affairs and the Institute for Ethics and the Common Good last week. It was a fascinating conversation, highlighting what we do and don’t know about how artificial intelligence (AI) will shape the workforce and economy. I was honored to offer some comments about what we’re observing in the realm of upskilling and reskilling activity by employers — I’m happy to share those comments here.
In the rapidly evolving landscape of AI, one thing is clear: businesses and employees alike are scrambling to keep up. AI-driven upskilling and reskilling — helping incumbent employees build the skills necessary to retain and advance in their roles — is now an urgent necessity. Yet, despite the clear demand, our collective response remains fragmented, reactive, and in many cases, ineffective.
The Data Tells the Story
While we may not have decades of academic research to guide us, we do have a wealth of emerging data that paints a compelling picture of the state of AI workforce preparedness:
- The Talent Shortage Is Real: New data from Revature shows that 75% of businesses are struggling to meet their IT talent needs, particularly in machine learning, AI, and generative AI (GenAI). More than 80% of business leaders are concerned about finding the talent they need in the coming year.
- AI Learning Demand Is Skyrocketing: Coursera’s 2025 Job Skills Report highlights an 866% increase in demand for GenAI content over last year, making it the fastest-growing skill people are looking to acquire.
- Workers Are Worried: More than half of US workers fear their skills will become obsolete. A recent Slack survey found that 76% of desk workers feel a sense of urgency to build their AI expertise, while 97% of executives feel pressure to integrate AI into operations.
- Investment Is Rising, But So Is Burnout: A third of senior leaders surveyed by EY say their companies will invest at least $10 million in AI this year. However, more than half of tech leaders in that same survey feel like they’re failing, signaling an alarming trend of burnout.
- Leaders Lack Training: General Assembly reports that three out of five vice presidents and directors in the US and UK have never attended an AI training or course. Only 42% feel confident using AI tools without compromising company data, and two-thirds feel ill equipped to make hiring decisions about vendors using AI.
- Workers Are Using AI Anyway: McKinsey reports that employees are integrating AI into their workflows, regardless of whether they’ve received formal training or guidance on best practices. Meanwhile, Moodle’s State of Workplace Learning shows that half of US workers have used AI to complete workplace training.
- HR Strategies Are Not Fully Aligned: The Conference Board found that only 7% of HR leaders are working on reskilling strategies for AI-impacted roles. Instead, 62% are focused on piloting AI in HR management — prioritizing automation over workforce preparedness.
- Training Is Falling Short: According to Pew, while half of workers received some form of training in 2024, only 12% learned about AI. TalentLMS research reveals that 63% of employees believe their company’s training programs need improvement, and nearly half feel that AI is advancing faster than their organization’s ability to train them.
- Training Preferences vs. Reality: While employees prefer dynamic, flexible learning formats (such as multimedia and self-paced courses), the same TalentLMS study shows that the majority of workers multitask during training, and more than a third forget what they’ve learned almost immediately.
What Does This All Mean?
There’s widespread agreement that AI upskilling is critical, but…
- Many companies are still focused on AI pilot programs rather than workforce training.
- When training is happening, it’s often inadequate or outpaced by AI advancements.
- Even when well executed, training may not keep up with the breakneck speed of AI evolution.
- Workers are using AI tools regardless, but without clear policies or training, this could lead to security, ethical, or operational risks.
AI upskilling efforts must navigate a complex landscape of challenges:
- Broader economic and societal shifts are reshaping job markets and skill demands.
- Digital literacy gaps persist, with many workers struggling to grasp not just AI but core digital skills.
- The AI divide is real — without deliberate intervention, those least likely to access education and skill development will fall even further behind.
- Higher education is struggling to keep pace, particularly institutions that serve working adults.
- Fear of obsolescence is driving anxiety — two-thirds of people globally believe AI will dramatically impact their lives in the near future.
A Roadmap for Smarter AI Upskilling
Recognizing the critical need for structured AI competency development, UpSkill America collaborated with the AI Alliance — a coalition of businesses, universities, research organizations, government entities, and nonprofits — to create the Guide to Essential Competencies for AI. This guide seeks to answer the “what” of AI skill-building by outlining key knowledge areas, from responsible AI use and data analysis to machine learning fundamentals. It provides a structured approach across different expertise levels, offering a potential foundation for organizations looking to establish AI training programs. However, the “how” of AI training remains a work in progress. And here’s where things get tricky.
The Training Dilemma: Scale vs. Effectiveness
To train at scale, organizations typically default to online, self-paced, modular programs. But here’s the issue — what we know about effective adult learning suggests that real learning happens through:
- Applied, hands-on experiences.
- Immediate relevance to daily work.
- Supportive and encouraging learning environments.
- Opportunities for feedback and real-world application.
So, while online training offers reach and flexibility, it risks being passive and forgettable if not thoughtfully designed.
Employers: Start with the Frontline
One critical takeaway for employers is this: prioritize your frontline workforce. Design AI training that is:
- Accessible: Ensure employees at all levels — not just executives — have entry points into AI learning.
- Relevant: Make AI skills training directly applicable to day-to-day tasks.
- Practical: Use hands-on, scenario-based learning rather than passive video modules.
- Clear: Define organizational AI guidelines, policies, and ethical boundaries.
- There are off-the-shelf AI training programs available, but organizations may need to customize their approach to align with their specific business needs. And most importantly, don’t assume upskilling is happening organically. Just because someone has experimented with ChatGPT or completed an online course doesn’t mean they understand how to use AI effectively within their specific industry or company culture.
The Urgent Need to Catch Up
The AI-driven transformation of our economy, workplaces, and society isn’t coming — it’s already here. And right now, our people, programs, policies, and workforce training strategies are struggling to keep pace. If we don’t act now, we risk deepening skill gaps, widening economic disparities, and leaving countless workers unprepared for the AI revolution. Employers, educators, and policymakers must step up, not just to pilot AI tools, but to ensure their workforce is ready to use them effectively, responsibly, and strategically. Because AI isn’t waiting for us to catch up.
About UpSkill America
UpSkill America, an initiative of the Aspen Institute Economic Opportunities Program, supports employers and workforce organizations to expand and improve high-quality educational and career advancement opportunities for America’s front-line workers. We seek to create a movement of employers, civic organizations, workforce intermediaries, and policymakers working collaboratively to implement education, training, and development strategies that result in better jobs and opportunities for front-line workers, more competitive businesses, and stronger communities. Follow us on LinkedIn and learn more at upskillamerica.org.
