Adapting to AI: Retraining for the Future of Work
As an organizational psychologist, I am faced with the challenge of rethinking training methodologies to support companies in adapting to the digital era. The rapid advancement of artificial intelligence (AI) and automation brings both excitement and anxiety. Employees fear that AI will render their jobs obsolete, and this fear is not unfounded. In my pursuit of understanding these dynamics, I found three enlightening articles that provide valuable insights: "Artificial Intelligence and Its Impact on Jobs" by Manjeet Rege and Dan Yarmoluk, "The Future of Work: How Will AI and Automation Affect Work?" by Kyle Shaner, featuring professors Liwei Chen, Craig Froehle, and Michael Fry from the University of Cincinnati, and "Retraining and Reskilling Workers in the Age of Automation" by McKinsey & Company.
Employee Fear
The fear of job loss due to AI is widespread among employees. Many worry that automation will render their roles obsolete, creating uncertainty and anxiety about their future in the workforce. This fear is not unfounded, as AI continues to evolve and integrate into various industries, transforming job roles and skill requirements. A recent conversation I had with my nephew, an engineering student, highlighted these concerns. He's worried about whether the coding skills he's learning now will still be useful if AI can already do the job. When he applied for his first internship, he looked closely at workplaces already practicing advanced AI integration. This conversation mirrors the sentiments of many professionals today, highlighting the urgency of addressing these fears and preparing for the future.
The AI Disruption
Predictions of Job Obsolescence
The fear that AI will make certain jobs obsolete is a common concern. However, it's important to note that AI tools like ChatGPT, as suggested by Craig Froehle (in Shaner, 2023), won’t eliminate jobs entirely. Instead, they will significantly change the nature of work by automating repetitive tasks and supplementing human efforts. Manjeet Rege and Dan Yarmoluk in "Artificial Intelligence and Its Impact on Jobs" (Rege & Yarmoluk, 2020) discuss how AI is transforming industries with technologies such as self-driving cars and warehouse robots, leading to increased efficiency. This transformation also opens up new opportunities and enhances traditional job roles, offering a hopeful and optimistic perspective.
Examples of Obsolete Jobs
Historical precedents show that technological advancements often lead to job obsolescence. For instance, the shift from horse-drawn carriages to automobiles made blacksmith jobs nearly disappear (Froehle, in Shaner, 2023). Similarly, AI is expected to disrupt roles like data entry, routine customer service, and even some white-collar jobs. The McKinsey report "Retraining and Reskilling Workers in the Age of Automation" (McKinsey & Company, 2018) predicts that by 2030, up to 375 million workers may need to switch job categories due to the impact of AI and automation. Furthermore, tasks such as scheduling, basic data analysis, and routine report generation are increasingly being handled by AI, reducing the demand for human involvement in these areas.
Retraining Amid Digital Transformations
The Scope of the Challenge
The transition to an AI-driven economy presents a massive retraining challenge. The McKinsey report highlights that the magnitude of this shift is comparable to the move from agricultural to industrial work in the early 20th century, but at a much faster pace. A McKinsey survey found that 66% of executives see closing the skills gap due to automation as a top priority, yet only 16% feel very prepared to address this issue. This gap underscores the urgent need for effective retraining strategies. The speed at which technology is advancing means that workers will need to adapt more quickly than ever before, making continuous learning and flexibility crucial components of the modern workforce (McKinsey & Company, 2018).
Barriers to Effective Retraining
Several barriers hinder successful retraining efforts. Many companies struggle with outdated HR systems and lack a clear understanding of future skill requirements. According to the McKinsey survey, a significant number of executives recognize the urgent need to overhaul their current HR systems. Many companies are finding it difficult to anticipate how job roles will transform and what types of talent will be necessary in the next five to ten years. Among those who view this as a top priority—42 percent in the United States, 24 percent in Europe, and 31 percent globally—there is an admitted lack of understanding regarding the impact of automation and digitization on future skills requirements. The McKinsey survey concludes that this level of concern is justified, as traditional training and retraining programs often fail by not offering clear pathways to new employment, focusing too much on theory rather than practical skills, and not providing a measurable return on investment (ROI). Overcoming these barriers requires a cultural shift within organizations to prioritize learning and development.
The Importance of Reskilling for Business Continuity
Reskilling is crucial for companies to maintain their operational viability and boost employee productivity. The McKinsey survey states that 38 percent of executives cited alignment with their organization's mission and values as a key reason for investing in reskilling efforts. At the World Economic Forum in Davos, 80 percent of CEOs committed to retaining and retraining their workforce while investing heavily in AI.
The main driver for these efforts is the recognition that digitization, automation, and AI are transforming industries. To fully capitalize on these advancements, businesses need a skilled workforce and effective processes. This is not just a social responsibility but a competitive imperative. Consequently, 64 percent of survey respondents across Europe, the United States, and other regions identified increased employee productivity as the primary reason for their reskilling investments. (McKinsey & Company, 2018)
Recommendations
Identifying Transferable Skills and Knowledge
A critical step in effective retraining is identifying transferable skills and knowledge. Employees must recognize which of their current skills can be adapted to new roles. Skills such as problem-solving, critical thinking, and creativity are valuable across various industries, even as specific job tasks evolve. For example, a worker in manufacturing who has developed strong problem-solving skills can apply these abilities in a different context, such as logistics or supply chain management. Identifying these transferable skills can help employees see the potential for new opportunities, reducing fear and resistance to change (McKinsey & Company, 2018; Rege & Yarmoluk, 2020).
Skills to Reinforce
In addition to identifying transferable skills, it is essential to reinforce and develop skills that will remain relevant in the digital age. Digital literacy, adaptability, and emotional intelligence are key areas for development. While AI and automation may handle routine tasks, human creativity, judgment, and interpersonal skills will continue to be in high demand. For instance, customer service roles may evolve to require more emotional intelligence as AI takes over basic inquiries. Employees who can effectively navigate digital tools and demonstrate strong interpersonal skills will be better positioned to succeed in the evolving job market (Chen, in Shaner, 2023; McKinsey & Company, 2018).
Updated Training Models
Training models must be updated to reflect the current technological landscape. This includes incorporating both online and offline learning methods, partnering with educational institutions, and leveraging AI tools for personalized learning experiences. Additionally, micro-learning modules, which break down training into smaller, more manageable segments, can make continuous learning more accessible and less overwhelming for employees (McKinsey & Company, 2018; Rege & Yarmoluk, 2020).
Continuous Learning Culture
Creating a culture of continuous learning within organizations is crucial for keeping pace with technological advancements. This involves encouraging employees to take ownership of their professional development and providing them with the resources and support needed to pursue ongoing education. Organizations can foster this culture by offering incentives for learning, such as promotions or bonuses for completing certain training programs. By valuing and investing in continuous learning, companies can ensure that their workforce remains adaptable and resilient in the face of change (Froehle, in Shaner, 2023; McKinsey & Company, 2018).
Conclusion
The insights from these articles emphasize the urgency of retraining and upskilling workers to adapt to the evolving job market. By identifying transferable skills, reinforcing essential competencies, and updating training models, we can help employees not only survive but thrive in the digital era. Through collaborative efforts and innovative approaches, we can ensure that the workforce remains resilient and capable of meeting the demands of the future. The journey towards adapting to these technological advancements is complex, but with the right strategies and a commitment to continuous learning, we can turn these challenges into opportunities for growth and success.
References
Rege, M., & Yarmoluk, D. (2020). Artificial Intelligence and Its Impact on Jobs. University of St. Thomas's STORY magazine.
Shaner, K. (2023). The Future of Work: How Will AI and Automation Affect Work? University of Cincinnati's Carl H. Lindner College of Business.
McKinsey & Company. (2018). Retraining and Reskilling Workers in the Age of Automation.
Revised July 2024
Written by Annie-Mariel Arroyo, PH.D
Dr. Annie-Mariel Arroyo-Calixto is a practiced organizational psychologist with more than 28 years of professional experience in organizational change and leadership development. Dr. Arroyo is the founder of Culture To Fit, where for the past 22 years, she has helped leaders build or reshape their organizational culture and lead transformation. She is a seasoned leadership educator and a renowned executive coach known for her ability to guide leaders in gaining deeper insights and self-growth.
