Despite Singularity looming on the horizon, the AI economy will continue to be driven by people. But what is needed from a human capital perspective for companies to succeed in today’s AI-driven economy?
All the amazing technological advancements would not have been possible without humans. In today’s dynamic, AI-driven economy, talent has emerged as a critical factor in enhancing competitiveness. Yet, for a resource as abundant as people, accessing the right skills is proving challenging. It poses the question of whether the capabilities available in the market today are helping or hindering growth in the data economy.
Technology Evolving Faster Than Our Ability to Keep Up
Over the past decade, employment in the technology sector in Europe has grown exponentially, increasing by around 60%, according to the European Commission. It also reports that this growth starkly contrasts with the 10% increase in overall job creation in the European economy. In the US, the tech sector has seen similar growth, with employment increasing by approximately 50% in the last decade compared to an overall job creation increase of 12% in the broader economy.
This trend reflects a growing demand for digital professionals, but volume alone only tells part of the story. The challenge is that technology is evolving faster than our ability to keep up. Each evolution of progress is taking us forward at one end and widening the digital skills gap at the other. It’s an issue that already costs the UK economy up to £63 billion a year and the US economy an estimated $100 billion annually.
Not Enough People with the Right Skills
Put simply, there are not enough people with the right skills to work in the data economy. It’s an issue that is being exacerbated by the rise of Generative AI with companies intent on recruiting talent that will both differentiate themselves from the competition and provide a degree of sovereignty when it comes to the AI tooling that will drive the business forward. Because every company now entering the economy is data-based, the talent pool of those with the right type of skills diminishes. Unless something is done, it’s a race to the bottom.
AI and Data capabilities and experience are some of the most sought-after skill-sets currently sought by recruiters. Accordingly, there’s a lot of demand for those types of employees, and some companies have been struggling to recruit people with the necessary skills.
This is because AI is distorting the skills market even further. Only a few years ago, those with coding and development skills were in high demand. They’re still highly sought after but we’re also seeing AI begin to take on programming work as it enhances the pace of development for current programmers. In the future, AI may or may not take more of this type of work, however, businesses will certainly need people who have some technical understanding of AI, Machine Learning, and the data that creates that allows it to flourish.
It’s why we’re seeing incentives for young people to get into such areas and a considerable drive for STEM subjects from our secondary school pupils. Unfortunately, the AI economy will not wait for today’s young adults to come of age. So how are businesses in the data economy plugging this skill’s black hole?
One of the main issues businesses face is that ‘digital skills’ is a relatively amorphous term. It covers everything from basic spreadsheet capabilities to complex coding. There is no one-size-fits-all solution, and answering it in the required speed needs strategic consideration across the company.
Today, people have access to and experience with a wide range of technologies and tools. Finding the right match for what your company is using is incredibly difficult. It’s why we spend a lot of time vetting candidates and ensuring they have the right mindset and foundational skills. Adaptability and hunger to learn new skills are more valuable for us over the long term than an individual with deep knowledge in a limited space.
How Companies Can Manifest the Right Skills
Businesses cannot rely solely on public and private education to fill the AI skills gap and offer AI training and upskilling with online courses and certifications. Develop in-house AI training and create hands-on AI labs. Fostering continuous learning and promoting AI literacy across the business allows for growth and knowledge sharing.
This, of course, means investing in AI tools and integrations and championing mentorships focused on AI, ML, and data optimization. Many will benefit from leveraging partnerships for intra-company growth.
Individuals also need to bear some degree of responsibility in equipping themselves with experiences and skills currently being sought. It is one of the driving forces behind initiatives that provide early-stage companies with credits for open-source services in various data platforms.
This helps young companies grow while exposing their people to the latest tools and technologies that will be the foundation of future businesses.
A Manifestation of Innovation
The AI-driven economy is a manifestation of innovation. It exists because it solves problems for customers and citizens. However, when it comes to skills, we need to increase the pace of producing AI-technology savvy workers to meet current and future demands. Businesses cannot rely solely on public and private education systems and should consider more A! skills-based training opportunities for employees.
Further, teams need to go beyond the skills they have historically been using and move on to a new phase. One capable of ensuring data is accessible, resilient, and reliable with the proper governance controls to create AI. That’s what will drive the AI economy forward.
