Invest in your people—or pay more than you need to for AI

Enterprise leaders must train their way out of their AI-related skills debt or prepare for an increasingly costly price war for talent only those with the deepest pockets can hope to win.

Many firms are contributing to worsening their AI skills debt by doubling the demand for AI-related roles within the last two years while training just 39% of their knowledge workers in AI skills in the same period, according to LinkedIn data. Training has not kept pace with need—75% of knowledge workers now use AI at work.

Growing your skills debt will become an increasing drag on performance as AI impacts more and more aspects of enterprise work.

The training lag can partly be explained by enterprise leaders’ relatively low level of recognition of the challenge. When HFS asked 550 enterprise leaders about the most significant challenges in implementing GenAI in their organization, only 38% called out ‘skill gaps among employees’ (see Exhibit 1).

Exhibit 1: Leaders face a more significant skills debt challenge than they currently recognize

Sample: 550 enterprise leaders
Source: HFS Research, 2024

Firms are locked in an arms race for AI talent as salaries rocket

No wonder many firms have had to resort to an increasingly costly and unsustainable arms race for talent. LinkedIn also tells us that salaries often exceed $100,000, with specialist roles such as machine learning researchers earning $250,000–$300,000.

The World Economic Forum predicts 60% of all workers will require additional training by 2027 and expects 97 million new AI-related job vacancies to fill by then.

‘Buy vs. train’ may be a viable solution in a crisis, but the skills debt you already face will only deepen as the demand for talent continues to outstrip supply. In the best case, many firms will end up paying more than they need. In the worst case, they’ll simply be priced out of competing for the best talent.

Skills debt goes far beyond simple tech capabilities

HFS Research found that the emerging skills debt, particularly in GenAI, goes beyond technical capabilities. In our HFS Horizons: Generative Enterprise™ Services 2023 report, we found that the essential skills GenAI pioneers felt were lacking in their teams included problem-solving, adaptability, and critical thinking. As machines become better equipped to do work, humans must become better at identifying, challenging, and defining the work that needs doing.

Firms must act now to pay down their mid- and long-term skills debt—the answer lies in training.

Good news: Your people want to upskill. Bad news: Many took the DIY route and now present a flight risk

The good news is that workforces are ready to embrace the AI revolution—so much so that if employers won’t train them, they’ll actively seek ways to acquire the skills they think they need themselves. LinkedIn data shows a 160% increase in the number of non-technical professionals using LinkedIn Learning for AI courses.

Also, the number of LinkedIn members who added AI skills to their profiles is up 142-fold. Unless you back your employees’ skills growth, expect those upskilling themselves to become significant flight risks.

Recognize and support your employees’ apparent desire for self-improvement. Make them your future—not just by buying tech but by investing in comprehensive training and development programs, prioritizing strategic skill-building, and fostering continuous learning.

Big brands have set the pace with comprehensive training for their people

If you were clinging to the hope that AI training programs are limited to the likes of Microsoft (Microsoft AI School), Google (Google AI residency program), and Amazon (Machine Learning University), think again.

Every enterprise must scale up its investment in AI training programs. Walmart has developed ‘The Data Academy’ to train employees in data science, AI, and machine learning—and to help them apply AI to improve business processes.

JPMorgan Chase offers AI programs to enhance employee skills in developing and implementing AI-driven solutions to improve its financial services and customer experience.

Even McDonald’s has an AI training initiative—part of its employee development programs focused on optimizing operations, improving customer services, and streamlining supply chains. Unilever, Coca-Cola, and Procter & Gamble are among other household names, proving that companies beyond tech firms are equipping their people to reduce their skills debt and maintain a competitive workforce as AI increasingly impacts how we all work.

The Bottom Line: Act now or risk losing your most forward-looking and ambitious people.

You are part of the problem if you only try to pay down your skills debt by advertising for and paying top dollar to AI talent. It’s a sticking plaster solution to a problem that requires a strategic approach. Your people want to be part of the AI revolution and can be your solution to skills debt IF you’re prepared to invest. Hold back, and your most forward-looking and ambitious people will find better options for themselves.