Upskilling strategies for the AI era

Published 5:30 pm Friday, July 25, 2025

By Shari Simpson for Paylocity

Upskilling strategies for the AI era

Artificial Intelligence (AI) is no longer a concept for the distant future. It’s here, transforming industries, reshaping workflows, and unlocking unprecedented potential for businesses.

HR and payroll software provider Paylocity explains how organizations now face the critical challenge of equipping their workforce with the skills needed to thrive in this AI-driven world.

Why Upskilling is Essential for AI Integration

AI is revolutionizing how work gets done, enhancing productivity and driving innovation across industries. From automating data-heavy processes to uncovering strategic insights, its applications extend across nearly every business function.

However, a clear gap exists between AI’s potential and current workforce readiness. Research from Randstad’s Workmonitor 2025 report found that demand for AI-related skills is surging, with 44% unwilling to take a job that doesn’t offer the chance to future-proof skills, up from 36% in 2024. Topping the list of skilling priorities is AI. Boston Consulting Group’s AI at Work 2025 report found that only 36% of workers have received adequate AI training and only a third of survey respondents reported understanding how AI agents work.

Bridging this skills gap is essential to remaining competitive in the AI era.

Using AI to Enhance, Not Replace, Human Talent

One of the most common concerns surrounding AI adoption is its perceived threat to job security. In some cases, those concerns are valid — certain roles may evolve or even phase out.

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But the broader opportunity lies in how AI can shift the focus of work. For instance:

  • Businesses use AI to analyze customer reviews, but the human touch is essential to understand emotions and build lasting relationships.
  • Analysts rely on AI tools to spot market trends, but intuition and experience are key to making strategic decisions effectively. As organizations start to leverage AI tools, it’s likely that much less creation work will need to be done, and much more focus will be placed on analysis.

Building Critical Skills for an AI-Enhanced Workforce

To fully leverage the power of AI, employees need both technical skills to effectively use the tools and soft skills to extract meaningful, ethical insights from outputs.

Technical Skills

Foundational AI literacy is the first step. Employees should understand what AI is, how it works, and how it applies to their specific roles. Effective training includes:

  • Entry-Level AI Workshops providing practical overviews of AI fundamentals.
  • Role-Based Learning Tracks tailored to specific functions, such as “AI for Sales” or “AI for HR.”
  • Hands-On Training in using AI tools for applications like report generation, forecasting, and workflow automation.

Real-life applications might include deploying AI chatbots for IT support or analyzing datasets with AI tools for better decision-making.

Soft Skills

AI increases the importance of human-centric skills by automating routine processes. Organizations should focus on fostering the following capabilities:

  • Critical Thinking to assess AI-generated outputs for inconsistencies.
  • Adaptability to encourage employees to adopt and integrate new tools into workflows.
  • Creativity to explore innovative AI solutions to complex challenges.
  • Ethical Reasoning to safeguard against misuse and uphold standards in data privacy and fairness.

Best Practices for AI Upskilling

Upskilling requires a structured approach to ensure employees are prepared to meet the demands of an AI-integrated workplace.

Set Measurable Goals

Clear benchmarks align AI adoption with organizational objectives. Leaders should tie success metrics to key performance indicators, such as a 10% improvement in efficiency. Also, continuously monitor and update performance targets based on employee feedback.

Gradual Onboarding

Introducing AI gradually reduces resistance to change, especially among less tech-savvy employees. Start with small-scale implementations, like automating meeting schedules or FAQs, to demonstrate tangible benefits.

Leverage Employee Feedback

Workers are often the first to see the limitations or benefits of AI tools. Conduct surveys or roundtables to understand where support is needed and address concerns about emotional job security. Open communication is key to fostering trust.

Embrace Continuous Learning

AI evolves every year, unlocking new opportunities. To thrive, individuals and organizations must embrace adaptability. Consistent AI training is an important support. Companies should add AI as a topic to their core training programs to build knowledge uniformly across employees and account for turnover and role changes.

Regularly update training programs with the latest AI advancements, provide access to online learning tools like certifications and workshops, and promote mentorship and collaboration to build skills and teamwork.

Turn AI Potential into Workforce Power

Successfully integrating AI into the workplace requires a balanced approach that prioritizes both technological efficiency and human-centric considerations.

By starting with incremental changes, actively involving employees, and addressing concerns transparently, organizations can foster a smoother transition. This not only enhances operational productivity but also strengthens employee trust and engagement, creating a sustainable environment for innovation and growth.

This story was produced by Paylocity and reviewed and distributed by Stacker.

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