A new future of work: The race to deploy AI and raise skills in Europe and beyond

A new future of work: The race to deploy AI and raise skills in Europe and beyond

In the race to deploy artificial intelligence (AI) and embrace the future of work, Europe and the United States face a common challenge - the need to improve human capital while accelerating technology adoption. The potential benefits of generative AI and other technologies are vast, but their full productivity potential can only be realized if we invest in both our workforce and the adoption of these technologies.

By 2030, it is estimated that up to 30 percent of the current hours worked could be automated, with the help of generative AI. This would require businesses to undergo a major skills upgrade and adapt to the changing nature of work. In Europe alone, up to 12 million occupational transitions may be needed by 2030, which is double the pace seen before the pandemic. This indicates the urgency with which businesses and individuals need to prepare for the future.

The demand for skills will also undergo a transformation. While the demand for physical and manual skills and higher cognitive skills may stabilize, there will be a rising demand for technological and social and emotional skills. This shift in skill requirements highlights the importance of not only upskilling current workers but also preparing the future workforce for the jobs of tomorrow.

To fully embrace the path of accelerated technology adoption and ensure a smooth transition for workers, Europe must focus on proactive worker redeployment. By investing in programs and initiatives that facilitate the transition of workers into new roles, Europe can achieve an annual productivity growth rate of up to 3 percent through 2030. This would be a significant improvement from the current level of productivity growth in Western Europe, which stands at 0.3 percent.

However, a slow adoption of technology and a lack of worker redeployment efforts would have dire consequences. Without proper preparation, millions of workers would be left unable to participate productively in the future of work. This would not only hinder productivity growth but also lead to social and economic inequalities.

To address these challenges, businesses need to develop integrated strategies that align their technology investments with their workforce development and communication practices. It is not enough to simply invest in technology; businesses must also invest in their employees and ensure they have the skills and knowledge to thrive in a digital economy.

Here are three actionable pieces of advice to help businesses navigate this new future of work:

• 1. Invest in upskilling and reskilling programs: Businesses should prioritize the development of their workforce by investing in training programs that help employees acquire the technological and social and emotional skills needed in the future. This will not only benefit individual workers but also contribute to the overall productivity and competitiveness of the business.

• 2. Foster a culture of continuous learning: In a rapidly changing technological landscape, it is crucial for businesses to foster a culture of continuous learning. Encourage employees to embrace new technologies and provide them with opportunities to learn and grow. This can be done through mentorship programs, online courses, and collaboration platforms that facilitate knowledge sharing.

• 3. Facilitate worker redeployment: As technology adoption accelerates, businesses must proactively facilitate the redeployment of workers into new roles. This can be achieved through job rotation programs, career counseling services, and partnerships with educational institutions. By supporting workers through this transition, businesses can minimize the negative impact of automation and ensure a more inclusive future of work.

In conclusion, the future of work is rapidly evolving, driven by the deployment of AI and other technologies. To fully harness the potential of these technologies, Europe and the United States must prioritize both the improvement of human capital and the acceleration of technology adoption. By investing in upskilling and reskilling programs, fostering a culture of continuous learning, and facilitating worker redeployment, businesses can position themselves for success in this new era of work. The choices made today will not only shape productivity growth but also determine the societal outcomes of the future. It is imperative that we embrace this path of change and ensure that no one is left behind.