Five Must-Haves for Effective AI Upskilling | Boston Consulting Group (2024)

EMPLOYABILITY & LEARNING CULTURE

Boston Consulting Group | Five Must-Haves for Effective AI Upskilling | This article outlines five essential actions organisations must take to ensure successful AI upskilling based on BCG's research and workshops with thousands of executives.

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✨ OVERVIEW

Boston Consulting Group (BCG) conducted extensive research, including studies of early AI adopters, workshops with over 3,000 executives, and interviews with more than 50 industry leaders, to determine the most effective approach to AI upskilling. The study reveals five crucial actions organisations should take: assessing needs, measuring outcomes, preparing people for change, incentivising learning, and leveraging C-suite leadership. Additionally, the research emphasises the importance of using AI in the upskilling process.

🧩 CONTEXT

As AI rapidly transforms the business landscape, companies face a significant challenge in upskilling their workforce. Despite 89% of respondents acknowledging the need for improved AI skills, many organisations need help implementing effective upskilling programs. This gap in AI capabilities risks companies' competitiveness and ability to leverage AI's potential for innovation and efficiency gains.

🔍 WHY IT MATTERS

Effective AI upskilling is crucial for several reasons:
↳ Competitive advantage—Companies that invest in AI gain superior innovation capabilities and readiness for unexpected challenges, outperforming peers across multiple metrics.
↳ Significant financial impact—For an organisation with $20 billion in revenue, using GenAI can lead to estimated additional profits of $500 million to $1 billion, with nearly a third of those gains coming in the first 18 months.
↳ Productivity and quality improvements—Research shows that adopting AI leads to 40% higher quality and 25% faster output.

💡 KEY INSIGHTS

↳ Assess needs and measure outcomes—Organisations should evaluate the specific upskilling requirements for different workforce groups and use methods like the Kirkpatrick model to measure the return on learning investment. The Kirkpatrick model assesses training effectiveness across four levels: reaction, learning, behaviour, and results.
↳ Prepare people for change—Raising awareness about AI initiatives and addressing employee concerns is crucial for successful implementation. This includes running enterprise-wide communications campaigns and creating safe spaces for experimenting with AI tools.
↳ Build-in incentives—Discovering what motivates employees and offering intrinsic and extrinsic incentives can help shift attitudes towards AI adoption. This may include digital badges, recognition, or gamification of learning experiences.
↳ Put the C-suite at the forefront—Top executives must champion AI upskilling efforts to drive adoption and realise anticipated impact and value. The CEO and leadership team should model desired behaviours and actively participate in AI initiatives.
↳ Use AI to upskill in AI—Leveraging AI-based learning tools can make upskilling more impactful, scalable, customisable, and cost-effective. More than 100 AI-based learning tools were launched in 2023 and the first half of 2024 alone.

🚀 ACTIONS FOR LEADERS

↳ Tailor upskilling approaches—Customize AI upskilling programs to match specific business objectives and high-priority use cases.
↳ Create AI centres of excellence—Establish internal hubs to promote knowledge sharing, mentorships, and collaborative projects across business functions.
↳ Integrate upskilling into strategy—Incorporate AI learning programs into broader organisational strategies and create clear career pathways for employees who acquire new AI skills.
↳ Foster a network effect—Embed AI in daily tasks at all levels to create a network effect, enhancing organisational knowledge and efficiency.
↳ Treat upskilling as a long-term effort—Recognize that achieving AI proficiency at scale may take several years and create upskilling working groups to sustain momentum.

🔗 CONCLUSION

AI upskilling is a critical, organisation-wide movement that will transform work and company operations. By implementing the five key actions identified in BCG's research, organisations can position themselves at the forefront of AI adoption and innovation. Those prioritising AI upskilling avoid falling behind in an increasingly AI-driven business landscape.

🎯 KEY TAKEAWAY

Organisations must prioritise comprehensive upskilling initiatives that assess needs, measure outcomes, prepare employees, incentivise learning, and leverage C-suite leadership to unlock AI's full potential. They must also use AI itself to enhance the learning process.

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