AI and the skill revolution: transforming job roles and skills management

September 11, 2024
Tina Ruseva By Tina Ruseva, CEO of Mentessa

Throughout history, human labor has been defined by skills. From hunters to shamans, individuals utilized their unique abilities to fulfill essential roles in society. However, the advent of the industrial revolution shifted the focus to machine operation, relegating skills to the background. Fast forward to today, and we stand at the precipice of a new revolution propelled by the democratization of AI and the reemergence of skill-based job roles.

The evolution of job roles in the age of AI

The impact of AI on jobs has been the subject of numerous reports and books. In a nutshell, some 1.1 billion jobs are expected to be “radically transformed” by technology in the next decade. Companies are already grappling with skills shortages and trying to find the best way to quickly reskill large numbers of people. HR leaders and organisations as a whole are becoming aware of the need to adapt to a world where volatility, uncertainty, complexity and ambiguity are the new normal.

Historically, job roles have continuously evolved in response to technological advancements. With the introduction of AI into the workforce, this evolution has accelerated. In sectors like manufacturing and manual labor, automation has significantly impacted process-based and manual tasks, prompting the need for reskilling initiatives. Similarly, administrative and routine office tasks have seen the introduction of AI-powered tools, enhancing efficiency. Even in customer service and support, chatbots and virtual assistants are reshaping the landscape, highlighting the importance of emotional intelligence in human interactions.

Routine tasks that once defined job roles are now being automated, leading to a shift in focus towards complex problem-solving and creativity. In other words, anything with a job description could be soon performed by a machine. What is left for people is the ability to learn, prioritize, and invent work itself.

The skill-based organisation

So what does this mean for jobs? For one, it is becoming obvious that old models are not effective anymore. With companies going hybrid and remote, work is becoming more transactional and company culture is disappearing. As employees enjoy the flexibility of remote work and forgoing the commute to work, they also miss those conversations by the water cooler. They miss the proximity of colleagues and the ease with which they could just ask someone nearby a question when in doubt about the best course of action. They miss learning by shadowing experienced coworkers.

In a global digital world of work that has become volatile, uncertain, complex, and ambivalent (VUCA), the job description is slowly becoming a barrier to productivity and innovation. In order to stay competitive and tackle global challenges, like the climate crisis or another pandemic, companies will need to transform to new organisational forms that are more agile, allow for interdisciplinary teamwork and empower people for decentralized collaboration - the skill-based organisation.

Roles such as AI developers, engineers, and data scientists are in high demand, and needed in any function of the company. In order to have the right skills at the right time in the flow of work, companies either would need to pay for the overhead, or invent new ways to let those skills ”flow”. Staffing a data scientist in each department and on each team is simply impossible. But providing an infrastructure and building culture where know-how exchange is possible on demand - less so.

For example, imagine a software engineer who has a specific question about a programming language they have just started using, or a compliance officer who needs to recall a step in a recently-introduced procedure. Or perhaps, a junior employee who is working on a stretch assignment and needs help with a task they have never done before. In all three cases, learning in the flow of work is just the kind of help needed. With the right kind of support, each employee can access a short piece of learning content that delivers the required information. The on-demand assistance means employees can quickly gain valuable new skills and solve problems without having to take time away from their roles.

On the way towards skills

As organisations navigate towards a skill-based approach, they encounter several obstacles along the way:

1. Cultural resistance: Traditional organisational structures may resist change, viewing the shift towards skill-based roles as a threat to established hierarchies and job descriptions. Overcoming this resistance requires effective change management strategies and leadership buy-in.

2. Skills assessment and identification: Identifying and assessing the skills needed within an organisation can be complex. Many companies lack robust systems for accurately gauging the current skill sets of their employees and forecasting future skill requirements.

3. Training and development: Implementing effective training and development programmes tailored to individual skill gaps is essential. However, organisations often struggle to allocate resources effectively and provide ongoing learning opportunities that align with evolving job roles.

4. Integration of AI and human expertise: While AI technologies offer significant potential for enhancing productivity and decision-making, integrating these technologies seamlessly with human expertise presents challenges. Ensuring AI augments rather than replaces human capabilities requires careful planning and collaboration.

5. Privacy and ethical concerns: The widespread adoption of AI in skills management raises concerns about data privacy, algorithmic bias, and ethical implications. Organisations must prioritize transparency, fairness, and accountability in their AI-driven processes to mitigate these risks.

Embracing a skill-based Future of Work

Despite these challenges, the shift towards skill-based job roles offers exciting opportunities for organisations and employees alike. By fostering a culture of continuous learning and adaptation, companies can empower their workforce to thrive in an ever-evolving digital landscape.

Looking ahead, the key to success lies in agile and inclusive approaches to skills management. This involves leveraging technology to facilitate personalized learning experiences, fostering interdisciplinary collaboration, and embracing diversity of thought and expertise.

As AI continues to advance, it will play an increasingly integral role in skills management, offering valuable insights into workforce capabilities and facilitating targeted reskilling efforts. By harnessing the power of AI in conjunction with human ingenuity, organisations can unlock new levels of innovation and competitiveness in the global marketplace.

The journey towards a skill-based revolution in job roles is complex, but the potential benefits are immense.

Tina Ruseva, CEO of Mentessa, a startup of EIT Digital’s Equity Portfolio, is a transformation expert, entrepreneur and chairman of the German national association for new work. Back in the beginning of her career she graduated in Computer Science with a thesis on AI and the power of networks.

We are always on the lookout for interesting contributors to our Grow Digital Insights column. Are you an industry leader or a researcher with an in-depth knowledge of the latest trends and applications of digital technology? Would you like to share your expertise and insights with EIT Digital's pan-European ecosystem of high-profile entrepreneurs, researchers, journalists, innovators and policy-makers? Please send your article proposals to press@eitdigital.eu or federico.guerrini@eitdigital.eu. We will review them and get back to you soon.

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