As the promise of AI to rapidly reshape industries intensifies, the gap between having an understanding of AI capabilities and the skills to implement AI solutions continues to widen. This divide is particularly pronounced between senior leadership, who drive digital transformation, and frontline workers, who are expected to implement and adapt to these changes and use this technology in their everyday work.
Recent research highlights the consequences of the AI skills gap, with one-third of UK employees feeling unprepared to adopt AI in the next one to three years. This disconnect between strategy and day-to-day execution on the ground is further underscored by the fact that 77% of UK tech workers admit to pretending they know more about AI than they actually do – illustrating the urgent need for organizations to bridge this gap and promote organization-wide AI literacy.
To address this divide, businesses must move beyond top-down mandates and build AI literacy across their entire workforce. Let’s explore why its important to act now, and how to achieve this in a scalable and effective way.
Chief Information Officer at Skillsoft.
Why businesses need AI literacy now
According to the World Economic Forum’s 2025 Future of Jobs Report, 39% of current skills in the workforce will become outdated within the next five years, with skills gaps remaining the biggest obstacle to organizational preparedness for future markets. As AI transforms ways of working and skills gaps widen, organizations must act now to equip employees with the knowledge necessary to understand AI applications and leverage them effectively.
First and foremost, businesses must recognize that AI literacy is no longer a nice-to-have, but a necessity. Employees need a foundational understanding of how AI works, where it adds business value and how it can be integrated into daily operations.
AI has the power to enhance efficiency, streamline workflows and improve business operations, transforming organizations across industries. A key element to upskilling efforts beyond understanding general AI capabilities is equipping team members with the ability to identify the opportunities for AI. They should also focus on building the mindset and awareness required to use AI effectively.
For IT professionals, understanding AI fundamentals, such as ethical use, large language modelling and data privacy, is crucial. But technical proficiency alone isn’t enough. Power skills, like critical thinking, communication, experimentation, curiosity and resilience, will be equally important for navigating complex environments and driving innovation. A combination of technical and power skills ensures employees can thrive in their current roles, adapt to evolving technologies and build skills for the future.
To embed AI literacy across the entire organization, leadership must take an active role in championing AI literacy initiatives. Without visible executive support, companies risk fragmented adoption and widening disparities in AI understanding between senior leaders and frontline workers. AI must be embraced holistically across all levels, from the boardroom to the frontline.
Assessing existing skillsets
With concern over the AI skills gap growing, 66% of C-Suite executives plan to recruit external AI-skilled talent, while 34% intend to ‘build’ talent internally by training existing employees. This split reflects the broader challenge of staying competitive in a landscape where AI capabilities are impacting the business landscape at a rapid pace.
However, as skill lifespans shorten, especially in areas like machine learning, generative AI and data science, businesses can’t solely rely on external hires to stay ahead. The pace of change means that today’s skills can quickly become outdated and hiring new talent each time a skill becomes obsolete is not sustainable or cost-effective. Instead, organizations should strike a balance between hiring new talent and investing in continuous learning and reskilling for existing teams.
This starts by assessing the existing skillsets in their team. By conducting baseline evaluations, businesses can compare current skills against benchmarks to identify areas for improvement. This targeted approach ensures learning initiatives are relevant, measurable and aligned with strategic business goals, maximising resource efficiency and impact.
Bringing existing employees along on this journey by assessing their existing AI skills and upskilling them appropriately will lead to deeper benefits beyond technical proficiency. This approach also boosts employee retention by demonstrating a clear investment in their growth while also improving the quality of and engagement in their work.
Creating an AI literacy framework
Rather than relying on ad hoc training sessions, organizations should establish structured, strategic AI literacy programs that equip frontline workers with the knowledge and skills required to identify AI use cases and drive AI adoption. Building this requires a multifaceted approach to learning, including programs that provide access to foundational AI and data skills, but they are only one piece of the puzzle.
Programs such as instructor-led sessions that contextualize AI within specific roles and industries and simulation-based learning allow employees to engage with realistic, AI-powered scenarios. By embedding these learning experiences into workforce development, organizations can future-proof their workforce with the skills needed for the AI revolution.
Additionally, continuous learning and adaptability must be central to organizational culture, equipping employees with current and future required skilling opportunities, as technical skill lifespans shorten. Creating AI literacy frameworks ultimately helps teams stay ahead of technological shifts while building overall resilience.
Achieving organization-wide AI literacy
AI literacy is no longer just for tech teams. It’s a business imperative across the entire workforce. For businesses to reduce the AI skills gap, it becomes even more crucial to bridge the divide between senior leadership and frontline workers.
By assessing existing skill sets, implementing comprehensive AI upskilling throughout the organization and fostering a culture of continuous learning, businesses can build an AI-ready workforce that is both prepared for and on board with their business strategy.
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