Beyond automation: Why human skills are essential in the age of AI

As the pace of innovation accelerates, organizations feel the pressure of the growing skills divide. A skills gap happens when employees' capabilities fall short of what's needed to meet the changing demands of their roles, especially in a fast-paced digital landscape. AI and automation are transforming industries at lightning speed, but with that comes the challenge of keeping up with the demand for new skills. While technology is pushing us forward, closing the skills gap means embracing both AI advancements and the continuous development of human skills.

AI is quickly emerging as a critical force in the modern workforce. According to Cornerstone’s 2024 Annual Trends: Global State of the Skills Economy report, job postings looking for GenAI skills — a subset of AI skills — jumped by 411% since 2019. Many companies now see AI as a transformative technology that will power the next wave of innovation and efficiency and a key differentiator to stay ahead of the competition.

But here's the challenge: as AI becomes more deeply integrated into our everyday operations, employees must adapt to these advancements. Beyond financial investments into technology or recruiting AI specialists, organizations must also ensure their workforce is well-prepared to develop the new skills needed to adapt and succeed.

However, it’s not just about learning new AI or GenAI skills. Even more critical is adapting existing skills to work effectively with AI. This evolving synergy between human skills and AI is a significant shift — one we don’t discuss enough but has the potential for an even greater impact.

Interestingly, despite the growing focus on AI and automation, the demand for human skills hasn't taken a backseat. The Cornerstone report shows that in 2024, leadership, creativity and problem-solving will be more in demand than purely digital skills. While AI skills are crucial, human skills consistently top the list of needs for businesses.

Even though job postings for AI-related skills have surged, the need for communication and collaboration skills has also significantly increased. It's clear that while AI is changing how we work, human skills are essential for business success and navigating the new reality of work.

What's truly exciting is that while AI is accelerating the skills gap, the technology will also help close it. AI-driven platforms can analyze employee performance, identify skill gaps, and recommend personalized learning paths. Imagine seeing where each team member needs development and offering targeted upskilling opportunities.

This visibility is a reality today. With AI, companies can map learning paths tailored to individual roles and career goals, making continuous learning more efficient and impactful. We can also sustain it at scale while using just a fraction of the operational resources. Plus, the system dynamically adapts over time as skills evolve, ensuring employees gain the right skills at the right time—a huge win for both workers and employers.

Companies that invest in AI-related upskilling programs are setting themselves up for success. The 2024 Annual Trends: Global State of the Skills Economy report found that organizations focusing on a mix of digital and human skills have a greater chance to outperform those prioritizing only technical skills.

Organizations can create upskilling programs that combine tech training with human skill development to equip their workforce with the skills needed to navigate current and future challenges. This approach doesn't just boost productivity—it fuels innovation and adaptability, key predictors of success as technology continues to accelerate.

As we look ahead, it's clear that technology will continue to shape the future of work even faster than we can keep up. But AI alone isn't the answer. Organizations that want to stay ahead must promote a continuous learning culture where AI and human skills are front and center. Employees must be supported to adapt, communicate and innovate to prepare for whatever comes next.

Navigating the skills gap will require a strategic blend of AI-powered insights and a solid commitment to developing people. Organizations that succeed will invest not only in learning but also in developing technical and human skills.

More importantly, these skills aren't one-size-fits-all — different generations bring unique strengths and require tailored development paths. While Boomers might need to adapt to new technologies, Gen Z could benefit from building communication and leadership skills. The future of work depends on blending these multigenerational strengths and ensuring everyone has the skills they need to thrive today and tomorrow.

Download Cornerstone’s 2024 Annual Trends: Global State of the Skills Economy to dive deeper into how AI is reshaping the workforce and discover actionable insights to close the skills gap in your organization.