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Ride Radar > Blog > Technology > AI skills: companies want them, locations try to provide them, but what exactly are they? 
Technology

AI skills: companies want them, locations try to provide them, but what exactly are they? 

Last updated: September 12, 2025 3:15 am
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AI upskilling refers to the process of providing training and education to individuals to develop their expertise in artificial intelligence (AI) technologies. The goal is to equip workers with the necessary skills to effectively use AI tools and drive business outcomes in a rapidly changing labor market.

The demand for AI skills is on the rise, with more than three-quarters of companies facing a shortage in this area. According to a PwC study, the skills requirements for AI-exposed sectors are evolving 66% faster than for other sectors. To address this gap, countries are launching national upskilling programs to prepare their workforce for the future.

In the UK, the government has partnered with major technology companies like Amazon, Google, IBM, and Microsoft to train 7.5 million workers in essential AI skills. This initiative is part of the government’s AI Opportunities Action Plan, which aims to position the UK as a global leader in AI technology.

Each of the participating companies brings a unique area of expertise to the training program, with Microsoft committing to upskill one million workers by 2025. Additionally, the TechFirst program, with a budget of £187 million, aims to provide AI skills training to people of all ages and backgrounds.

Glynn Townsend, senior director of education services at SAS, is one of the providers working with the government to deliver AI training to workers. These initiatives are essential for ensuring that the workforce is equipped with the necessary skills to leverage AI technologies effectively and drive innovation in the digital age.

As the demand for AI skills continues to grow, it is crucial for governments and companies to define specific outcomes for upskilling programs. Without clear objectives, there is a risk of wasting resources on initiatives with undefined aims. By setting clear benchmarks for AI literacy, countries can ensure that their workforce is prepared for the future and attract investment in the rapidly evolving AI landscape. AI literacy is becoming increasingly important as artificial intelligence (AI) continues to play a larger role in our daily lives. While the term itself is hard to define, it encompasses the ability to understand the potential benefits and limitations of AI, particularly when it comes to chatbots and large-language models (LLMs).

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One key aspect of AI literacy is understanding the bias present in AI models and where the data used to train these models comes from. This knowledge allows individuals to ensure that the AI systems they interact with are accurate and reliable. As AI becomes more integrated into daily life, trust, confidence, and knowledge of the rules governing AI use will be crucial for individuals to automate or augment their work effectively.

Different levels of AI literacy are required depending on an individual’s role within a company. For example, C-suite executives need to understand how AI can enhance their business, while average workers may need to know how to use AI to drive outcomes or deliver services. Technologists and AI developers, on the other hand, require a high level of understanding of LLMs and how to build infrastructure for AI applications.

As AI technology evolves rapidly, ongoing learning and upskilling will be necessary to keep up with these changes. Continual lifelong learning will be essential to adapt to new advancements in AI and ensure that individuals are equipped to work effectively with these technologies.

Despite the potential benefits of AI, some individuals have concerns about its impact on the job market. A study by Stanford University found that entry-level jobs in AI-exposed sectors decreased by 16% between 2022 and 2025, while more experienced workers saw increased opportunities. This disruption in the labor market is comparable to previous technological advancements, such as the introduction of computers, which eventually led to the creation of new jobs.

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While concerns about job displacement due to AI are valid, experts believe that the job market will eventually adjust to accommodate new opportunities created by AI. The World Economic Forum estimates that 170 million new jobs will be created by 2030, offsetting the 92 million jobs that may be lost due to AI adoption.

Demographic changes, such as declining fertility rates, also play a role in shaping the future of the labor force. AI may help increase efficiency and productivity in industries facing labor shortages, but there is also a risk that automation of entry-level jobs could lead to unemployment crises for younger workers if adequate training and new opportunities are not provided.

Ultimately, AI literacy and ongoing learning will be essential for individuals to navigate the changing landscape of work and technology. By understanding the potential benefits and limitations of AI, individuals can adapt to new challenges and opportunities in the evolving job market. AI has become a hot topic in the workforce, with many experts debating whether it empowers or constrains workers. According to a Stanford study, the impact of AI on workers depends more on how employers choose to deploy it rather than the tool itself. This is especially crucial in a world where youth unemployment may become a structural problem rather than just a temporary adjustment to new technology.

In light of this, AI upskilling programmes have gained importance. These initiatives aim to equip workers with the necessary skills to adapt to the changing technological landscape. However, Dr. Graham suggests that along with upskilling, there is a need for expanded redistributive policies to address the structural realities of job scarcity.

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MIT’s Networked Agents and Decentralised AI project found that many AI pilot programmes fail to drive revenue due to a “learning gap” in tools and organizations. Successful companies often opt for external AI tools and focus on automating back-end processes to drive revenue. So, what makes a successful AI upskilling programme?

According to experts like Woodstock and Townsend, successful initiatives start with a clear business outcome and work backward to implement AI solutions. Focusing on specific outcomes and productivity improvements is key to showing workers the benefits of AI adoption. Without a clear goal, initiatives risk a generic adoption approach that may not yield desired results.

The lesson for governments and companies is clear: training programmes may become a permanent fixture in the workforce. As Townsend highlights, continuous learning and upskilling are essential in today’s fast-paced technological landscape.

In conclusion, the success of AI upskilling programmes lies in their strategic implementation, outcome-driven approach, and focus on continuous learning. By aligning these initiatives with specific business goals and productivity improvements, employers can empower their workforce to thrive in an AI-driven world.

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