The transformation of skill needs in the age of generative AI
With one out of three companies [1] already adopting Generative AI in Asia, we are witnessing a technological revolution that promises to reshape industries and redefine the skill sets required by both organizations and employees. Explore how Generative AI is transforming skill requirements in Asia, highlighting the need for continuous adaptation, the rising importance of soft skills, and strategies for managing evolving technical skills.
The imperative for continuous adaptation
In the rapidly changing landscape driven by Generative AI, the ability to adapt swiftly and efficiently has become crucial. In Asia, more than half of survey respondents in Global Talent Trends 2025 say Gen AI has led to the need for continuous reskilling. Organizations and employees must recognize that the skills deemed essential today may become obsolete tomorrow. This rapid pace of change necessitates a mindset of continuous learning and flexibility.
Lifelong learning is no longer a choice but a necessity. Employees must proactively seek opportunities for skill enhancement, whether through formal education, online courses, or hands-on experience. Organizations, in turn, must foster a culture that encourages and supports continuous development. By providing access to training programs, creating learning pathways, and incentivizing personal growth, companies can ensure their workforce remains agile and competitive.
Resilience is another critical attribute in this era of rapid technological advancement. Employees must be prepared to navigate the uncertainties and challenges that accompany the integration of Generative AI into the workplace. This involves not only acquiring new technical skills but also developing the mental fortitude to adapt to new environments and workflows.
The increasing role of soft (or “Core”) skills
While technical skills remain essential, the importance of soft skills—often referred to as core skills—has never been greater. As Generative AI takes over routine and repetitive tasks, the human workforce will be required to bring a unique set of interpersonal and cognitive abilities to the table.
Effective communication and collaboration are at the heart of successful AI integration. Employees must excel at working in teams, sharing ideas, and conveying complex information clearly. This is particularly crucial as interdisciplinary teams become more common, merging AI specialists with domain experts to drive innovation.
While Generative AI can process vast amounts of data and generate solutions, it is human critical thinking and problem-solving that will interpret these solutions and apply them contextually. Employees must be able to analyze AI-generated insights, assess their relevance, and make informed decisions based on a combination of machine intelligence and human judgment.
As AI automates more tasks, human interactions will become increasingly significant. Emotional intelligence and empathy are core skills that enable employees to understand and respond to the needs of clients, colleagues, and stakeholders. Building strong, empathetic relationships will be a key differentiator in a technologically advanced workplace.
Managing the transitions of technical skills
The ever-evolving nature of Generative AI necessitates a strategic approach to managing the transitions of technical skills over time. Organizations’ ability to define and manage skill proficiencies remains an issue globally and in Asia. 51% reported[2] that they do not manage skill proficiencies centrally, with only 22% doing so. The responsibilities on skills lie with both organizations and employees and they must be proactive in anticipating changes and preparing for them.
Organizations must invest in skills forecasting to identify emerging trends and potential skill gaps. By understanding the trajectory of AI advancements, companies can develop strategic plans to upskill or reskill their workforce accordingly. This involves not only technical training but also aligning employees' career paths with the evolving demands of the industry. Having said that, the ability of organizations to forecast the impact of technology on the need for certain skills and its impact on headcount is relatively low. According to Mercer’s 2024/2025 Skills Snapshot Survey report, only 9% globally reported that they have high effectiveness and 42% reported low effectiveness in doing so.
Traditional training programs may no longer suffice in the age of Generative AI. Organizations should adopt flexible and modular training approaches that allow employees to acquire specific skills as needed. This might include micro-credentials, short-term courses, and on-the-job training that can be tailored to individual and organizational needs.
The integration of Generative AI across various domains necessitates a workforce that is well-versed in cross-disciplinary expertise. Employees should be encouraged to broaden their knowledge beyond their primary field of expertise, fostering a holistic understanding of how AI impacts different facets of the business. This cross-disciplinary approach will enable employees to adapt to new roles and responsibilities as AI technologies continue to evolve.
Mentorship and peer learning are invaluable in managing the transitions of technical skills. Experienced employees can guide their colleagues through the complexities of AI integration, sharing insights and best practices. Organizations should create platforms for mentorship and facilitate peer learning networks to enhance skill development and knowledge sharing.
As Generative AI becomes more pervasive, ethical considerations will play a crucial role in skill development. Employees must be trained to understand the ethical implications of AI technologies, including issues related to data privacy, bias, and accountability. Organizations should prioritize ethical training to ensure that AI is deployed responsibly and transparently.
Conclusion
The advent of Generative AI is transforming the skill needs of organizations and employees in profound ways. The ability to adapt continuously, the increasing importance of soft skills, and the strategic management of technical skill transitions are all critical components of this transformation. By embracing these changes and fostering a culture of lifelong learning, organizations and employees can navigate the complexities of the AI-driven future and unlock new opportunities for growth and innovation.
About the author(s)
Lewis Garrad
Partner, Asia Career Practice Leader
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