By Michael Wade and Amit Joshi
Large insurers had planned to deploy AI tools for their employees, including churn reduction, customer service and risk management models. However, some of these systems collected dust due to the lack of consistent and consistent training among users. In contrast, Asian banks are particularly dedicated to increasing the overall workforce while simultaneously deploying AI, bringing impressive benefits of customer acquisition, retention and operational efficiency.
As these examples illustrate, assuming employees “knowing” AI on their own has proven costly miscalculation. Instead, speeding up large employees is quickly becoming a must-see battle for legacy organizations. But can this turn into a real competitive advantage?
Democratization of AI
AI is nothing new. In fact, “traditional” AI is more accurately machine learning and has been around for decades. However, until recently there was not much discussion about AI training for all employees. So, what has changed?
The answer to this question is what happened on November 30th, 2022. Until then, an unknown startup called Openai launched ChatGPT, and overnight AI went from something that requires extensive expertise and access to cutting tools used to it, to something that anyone with an internet connection would be at their disposal. This sudden democratization is rapidly changing the way AI is used across organizations. It went from a top-down system that required careful planning, enormous resources and gradual rollouts to bottom-up. We promise to change the company’s operating model overnight.
Of course, this is not possible unless the employee understands the technology. Savvy organizations quickly understand this and treat Skilling as a strategic initiative. However, these companies’ focus is not only on training employees on AI use. There are also important change management elements.
Does ai do my job?
Companies are discovering effective AI upskills go beyond technical training. It also addresses the fear and uncertainty that employees feel about the impact of AI on their professional future.
“It’s not just about providing knowledge,” explains David De Cremer, founder of the Center for AI Technology at NUS Business School. “It’s about splitting AI and turning fear into enthusiasm. Adoption accelerates dramatically when employees understand how AI can enhance rather than exchanging work.”
A comprehensive, highly skilled program focusing on both technical capabilities and emotional barriers leads to significantly better adoption rates than purely technical approaches. By promoting psychological safety around AI, organizations can turn resistance into innovation.
Smart companies are luxury
The demand for AI-related skills is growing exponentially. A 2024 report from McKinsey found that 47% of employees expect to use AI for at least 30% of their daily work within a year, but only 20% of executives who think the workforce is ready. This contradiction underscores the urgent need for luxury initiatives to close the gaps and ensure that AI investments create the greatest value.
The financial case of AI Upskills is convincing. Organizations around the world are projected to spend more than $300 billion on AI technology by 2026. However, many will see disappointing returns without corresponding investments in human capital.
The equation is simple. Even if employees fully utilize it, misuse it, or avoid it altogether, AI platforms that sacrifice millions provide little value. Conversely, IMD Business School research shows that organizations investing in upskills have significantly improved returns from AI investments, which often exceed the cost of training.
Mayo Clinic offers an attractive example of AI’s high-end success. Initially, AI was deployed to streamline management tasks and operational efficiency. However, after investing in comprehensive AI training for clinical staff, Mayo Clinic expanded its use of AI to diagnostic and personalized medicine. For example, AI-enabled ECG systems can detect mental weaknesses that cannot be detected by human readers, offering much greater value than early efficiency-driven applications.
AI Up Skilling Best Practices
Given the magnitude and scope of the impact this technology will have over the next few years, companies should be careful not to deal with AI upskills like other similar programs in the past, such as ERP training. Instead, we recommend the following steps:
Start with the basics: make sure concepts like AI, ML, and Generated AI are split into all employees
Create customized learning pathways for roles and departments. Different duties and departments require different AI skills and levels of expertise. Make sure these differences are explained in the training.
Practical learning is essential. Effective programs combine conceptual understanding with practical applications.
Create sand boxes for experiments: Employees need the opportunity to test AI tools without fear of failure.
Identify “AI Champions” within business units and functions that can support learning in a local environment.
Establish a learning community that can continuously support the needs of our employees.
Build a continuous learning structure: AI evolves quickly and requires continuous education rather than one-off training. This includes sharing and failure of best practices.
The need for competition
Just as AI forms an industry, upskills are no longer an option. It is a strategic obligation. Organizations that treat workforce development as an afterthought will struggle to fully realize the possibilities of AI. Those who recognize human capabilities as a link pin for AI success will not only maximize technology investments, but will build a workforce to drive innovation into the future of Ai-Aigmented.
AI-up skills are more than just HR policies. Drive higher employee engagement, maximize AI adoption and ensure competitiveness in evolving markets. This is the most strategic investment that a leading company can make.
About the author
Michael Wade I am Tonomus, professor at Digital and AI Transformation at IMD Business School in Switzerland.
Amit Joshi He is a professor of AI, analytics and marketing strategy at IMD Business School. They are co-authors who recall the new book, Gain: Genai, for offices and homes.
