Discussions about artificial intelligence (AI) often focus on concerns about job losses and machines taking over jobs that are usually done by humans.
But there is an equally important and urgent challenge that needs to be urgently addressed among the workforce: the persistent shortage of digital skills.
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K&I Managing Director at Cognizant.
This problem is already affecting businesses today, and the labor market has responded accordingly, with roles requiring AI and data skills commanding a premium due to the shortage of these skills.
AI is reshaping work itself
AI is changing the way work is organized. The boundaries of traditional departments are becoming more and more rigid. AI tools can help identify and recruit the right workers for a specific job, regardless of where that technology resides legally.
By absorbing much of the burden of organization and management, AI allows people to focus more on results than processing. This is no small change. Recent research suggests that 93% of jobs could be affected by AI in some way, which helps explain why shifts in the way you are organized are occurring so quickly.
As this change occurs there is a common misconception that AI is replacing smaller roles. In fact, as a measure of AI tools, they are creating new opportunities for early career professionals to participate. Generative AI lowers technical barriers, allowing young talent to engage with AI and other advanced technologies.
The skills required are now more and more flexible, collective thinking and problem solving, rather than deep knowledge of legacy technologies. These roles allow juniors to contribute to high-level work up front, while gaining practical experience, building judgment, and developing resilience, all of which strengthen organizational capacity.
This does not eliminate the importance of technology. Instead, it changes the way it is used. Experienced professionals can focus on high-value work, while those early in their careers can take on responsibility quickly. It’s not a universal solution, but in situations where speed and creativity are important, this lean, networked model represents a real change in the way organizations work.
Access to these opportunities, however, remains unequal. Smaller firms and more traditional sectors risk falling behind, while organizations with better resources move forward. Collaboration and efforts between industry, education providers and the public sector are beginning to address these inequalities, but progress is uneven. If left unchecked, the result will be a deep digital divide.
An accelerating digital skills gap
Formal education and business training have not kept pace with the rapid pace of technology change. These systems usually operate on multi-year or fixed annual cycles, but digital technology is evolving very quickly.
As a result, skills can become obsolete before they can be properly applied in the workplace, while job descriptions often lag behind the realities of modern work. This means that many organizations invest heavily in new technologies but lack the manpower required to implement them effectively. Unsurprisingly, the expected returns on these investments often fail to materialize.
The results are important. Without deliberate intervention, the skills gap will continue to widen and reinforce existing inequalities. In the UK alone, the digital talent shortage could cost the economy £27.6 billion and put 380,000 jobs at risk by 2030.
Basic digital skills are associated with higher salaries, while broader skill portfolios offer even greater benefits. In the US, studies show that mastering one digital skill can increase an employee’s salary by 23%, while three or more skills can increase wages by nearly 45%.
Digital skills have become a key factor in job security and long-term financial stability, reinforcing the need for accessible and inclusive skills development opportunities.
Practical ways to develop digital skills
Despite this, skill development is still considered an individual responsibility. Employees are expected to retrain themselves, often outside of working hours and at their own expense. This approach is becoming increasingly untenable. Digital skills are now central to the way organizations work, and the responsibility for developing them cannot rest with one person alone.
Organizations must also rethink how learning works. Developmental studies are often implemented as check-box style processes with certificates to be collected. In fact, people learn most effectively by doing. Therefore, employees should be given the opportunity to participate in deep, real-life experiences.
Formal training is beneficial, but alone rarely equips people with the confidence or judgment needed for real-world application. Power develops through practice, using real tools, dealing with real problems and building confidence over time.
Pilots, simulations or guided projects can help people develop judgment and adaptability skills as well as technical knowledge. When organizations prioritize this kind of hands-on exposure, skills are spread quickly and evenly, rather than remaining concentrated in specialist groups. Where they don’t, the gap widens – especially in small businesses and sectors with little digital access – increasing the risk of a permanent digital divide.
Talent investment and training also improve retention. Employees are more likely to stay with organizations that demonstrate a commitment to their growth and development.
Future choice
The question for organizations is not whether to embrace AI, but how to invest in it. Technology alone cannot deliver lasting value without the skills and confidence to use it effectively. Investments in systems must be matched by investments in digital capabilities across the workforce.
AI is already embedded in the economy, but its impact will depend on whether organizations prioritize effective skills development or allow gaps to widen further.
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