Reskilling in the AI age means giving workers the skills to take on new and different jobs. Upskilling – which provides new skills for existing jobs – won’t be able to keep up with the coming disruptions.
AI is accelerating the need for workforce reskilling. AI can already replace nearly 12% of the U.S. workforce in all 50 states, representing $1.2 trillion in wages, according to an October 2025 MIT study. and that number will soon grow worldwide.The authors find a ripple effect across job categories, with entry level jobs particularly at risk.
Consulting firm BCG estimates that 29% of the global workforce – over one billion people – will find that “demand for their job is disappearing” by 2030. In addition, the “average half-life” of job skills is less than five years – and as low as 2.5 years in some tech fields – the Harvard Business Review (HBR) reports. “For millions of workers, upskilling alone won’t be enough,” write the HBR authors. Workers will need to be trained to take on new roles.
In the last article, we examined upskilling in the AI age. Upskilling refers to training workers with new skills for existing jobs. In this article, we will examine reskilling: Training workers to take on new jobs and new careers in the AI age.
Reskilling faces challenges due to a lack of training opportunities, not a lack of interest. More employees are interested in AI related skills than are being offered training. Leadership support and better ROI metrics can help close the gap.
What does it take to become a “prompt engineer,” an “AI translator,” or an “agent overseer?” These are just a few of the new jobs the AI age will create, according to a Forbes article. To stay current, employers must be at the forefront of reskilling efforts.
The real challenge of adopting AI is developing the right workforce skills, Forbes reports. The author cites a “talent gap” – really a “skills gap” – between executives and front line employees as one example. About 44% of executives use AI tools, compared with just 27% of frontline employees. The gap is due to lack of training, not lack of interest. While 80% of workers want AI related skills, only one-third have been offered training, according to the article.
Leaders and organizations need to find better ways to deliver needed skills – and better ways to measure the results of their efforts.
For example, a survey of over 1,200 U.S. companies conducted by BCG and the Harvard Business School, found that 40% measured a positive ROI from reskilling efforts while just 4% measured a negative return. The rest either did not or could not measure the ROI of their reskilling programs.
Without relevant data, leaders will find it difficult to give reskilling the internal support it needs.
The BCG authors write that the ROI of reskilling efforts actually “turns positive rather easily” after offsetting set up costs. In last month’s upskilling article we found substantial savings when organizations re-train rather than replace the workforce. Other benefits include higher engagement, retention, productivity, and profits.
Organizations can improve reskilling by adopting a skills-based approach to determine exactly what they need from the workforce. Be willing to experiment and start small to improve program success. Keep in mind that reskilled employees will need support both during and after the process. Leadership support is another key to success.
Here are five ways to improve reskilling for the AI age:
The first challenge when starting a reskilling program is to understand which skills will be needed and how many new positions will need to be created. The Harvard Business Review suggests beginning by developing a “skills taxonomy” – which is a list of skills needed for each position. The World Economic Forum, SAP, and others have published examples for thousands of positions, which can be used as a starting point.
A related approach is skills based hiring and placement. Instead of revolving around fixed roles and job titles, the skills based approach focuses on the particular skills of each employee. When implemented, the skills based approach produces an “inventory” of skills needed and available in the workforce. The inventory can help organizations identify the most promising candidates for reskilling and estimate the number of roles available.
Reskilling programs should be seen as works in progress, according to BCG. “When companies adopt an experimental approach – like they do when launching new products or services – they are more successful at reskilling,” the authors write. Think of reskilling as an exercise in change management that requires experimentation and adjustment for best results.
Start with a “test and learn” model and fine tune it before scaling the effort. Companies that spend at least one year developing pilot reskilling programs are twice as likely to report positive ROI compared with those that don’t, according to BCG. Successful programs often start with small cohorts or groups. The process is tested and refined before being rolled out widely.
Even though workers recognize the need for new skills, some may be reluctant to take advantage of reskilling. About half of workers are afraid of change, or afraid that they won’t be able to master new skills, according to Forbes.
Reskilling also represents a substantial investment of time and effort on the part of employees and organizations will need to provide appropriate support. That includes providing time for learning and compensating employees during the training process, the HBR reports.
Rewarding worker participation can broaden the reach of reskilling. The most effective reward is a new role in the organization. The HBR authors write, “if destination roles are clearly described in advance,” employees become more enthusiastic about reskilling. “Softer” inducements, such as providing certificates and recognition, can also boost participation.
Organizations will need to provide support for workers who are transitioning to new roles. Newly reskilled workers will need to adapt to a new working environment and make connections with new colleagues.
The best approach, according to the Harvard Business Review, is to adopt an on the job, or “train in place,” approach to reskilling. While some classroom or individual study may be needed, as much training as possible should be done through “shadowing assignments, internal apprenticeships, and trial periods.” By training in place, reskilled workers can begin to develop relationships with their new colleagues and become familiar with their new surroundings.
Reskilling is often considered just another part of learning and development efforts, and risks being “siloed” within HR, reports the Harvard Business Review. When that happens, progress tends to be measured by the number of training sessions given, cost per participant, and similar metrics – instead of ROI or more results oriented measurements.
For reskilling to succeed, there needs to be a “clear connection” between reskilling and overall strategy, according to the HBR authors. Creating reskilling KPIs, with regular reviews by senior management, is an excellent way to keep the issue top of mind.
Once the strategy is set, leaders need to become champions for reskilling. They should explain why reskilling is needed and what the benefits to employees are. When employees are told honestly which skills are needed and which are in decline, support for reskilling increases.
Reskilling is a strategic initiative that requires buy-in at all levels, from leadership to frontline employees. If you would like to learn more about creating a successful reskilling program for your organization, please contact us.
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