How Generative AI is transforming workforce skills for the future 

  
  
  • Contributor
    Lewis Garrad
    Partner, Asia Career Practice Leader, Mercer
As Asia undergoes a technological revolution with one of three companies adopting Generative artificial intelligence (Gen AI) [1], technology is on track to redefine skill sets. Explore how Gen AI is transforming the skills needed in the future workforce.

More than half of the respondents in the Global Talent Trends 2025 say Gen AI has led to the need for reskilling, highlighting the critical need for companies to adapt swiftly and efficiently to the future of work as skills deemed essential today may become obsolete tomorrow.

Technical skills remain essential, though they will require an update of skills due to AI’s rapid advancement. Additionally, the age of AI is seeing the rise in importance of soft skills, often referred to as core skills. As Gen AI takes over routine and repetitive tasks, organisations need to support employees in adopting a mindset of continuous learning. Employees will be required to bring a unique set of interpersonal and cognitive abilities to the table. 

The growing importance of soft skills in the age of AI

While Gen AI takes over technical expertise such as complex calculations to analysing massive data with formidable precision, it lacks human empathy, intuition, and other core soft skills, which are becoming important as skills for the future workforce.

Effective communication and collaboration are at the heart of successful AI integration, and employees need to excel at teamwork, sharing ideas, and conveying complex information. This is especially crucial as interdisciplinary teams become more common, merging AI specialists with domain experts to drive innovation. 

While Gen AI can churn out vast amounts of data and generate solutions, it is dependent on human critical thinking and problem-solving that interpret these solutions and apply them contextually. Employees must be able to analyse AI-generated insights, assess their relevance, and make informed decisions based on a combination of machine intelligence and human judgement.

Human interactions will become increasingly significant as AI automates more tasks. 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

Organisations’ ability to define and manage skills proficiencies remains an issue globally and in Asia. 51% of organisations report not managing skill proficiencies centrally, with only 22% doing so [2]. The responsibilities for reskilling and upskilling lie with both organisations and their people, and they need to be proactive in anticipating changes in technical skills. Human resources (HR) need to support employees in preparing for change as the rapid advancement of AI requires a strategic approach to transitioning technical skills over time. 

Ethical considerations play a crucial role in skill development as Gen AI becomes more pervasive. Employees need to be trained to understand the ethical implications of AI technologies such as data privacy, bias, and accountability. Ethical training needs to be prioritised to ensure that AI is deployed responsibly and transparently.

Understanding the trajectory of AI advancements can help companies develop strategic plans to upskill or reskill their workforce accordingly, and organisations can invest in skills forecasting to identify emerging trends and potential skill gaps.

However, this involves not just technical training but also aligning employees’ career paths with the evolving demands of the industry. But according to Mercer’s 2024/2025 Skills Snapshot Survey report, only 9% of respondents globally report being able to forecast the impact of technology on their need for certain skills and how it affects their headcount. 42% of those surveyed have low effectiveness in doing so.  

Traditional training may not suffice in the age of Gen AI. Instead, organisations need to consider adopting 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 organisational needs. 

With the integration of Gen AI across various domains, the workforce needs to be well-versed in cross-disciplinary expertise. Encourage employees 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 as experienced employees can guide their colleagues through the complexities of AI integration while sharing insights and best practices. Organisations can create mentorship platforms and facilitate peer learning networks to enhance skill development and knowledge sharing.

Understanding the complexities of an AI-driven future to adapt your workforce

The development of future skills requires that companies understand the complexities of an AI-driven future to effectively develop critical soft skills and strategically manage technical skill transitions to unlock new opportunities for growth and innovation. You can embark on the reskilling and upskilling of your workforce internally or partner with a trusted HR consulting firm to help you accelerate your digital implementation and support change management. 
About the author(s)
Lewis Garrad

Partner, Asia Career Practice Leader

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