Skills May Decide Artificial Intelligence Supremacy
The debate on artificial intelligence has largely focused on computing power, data centers, and energy, but another constraint is becoming just as important: people. Across Europe, businesses are discovering that one of the greatest barriers to adopting AI is not merely access to technology, but the skills needed to use it effectively.
Recent research from the Organisation for Economic Co-operation and Development makes this clear: About 40% of employers in manufacturing and finance that have yet to adopt AI cite skills shortages as an obstacle, while more than half of small and medium-sized enterprises not using generative AI say the same.
AI is increasing demand for higher-skilled workers, making talent an increasingly scarce and strategic asset. This should be a wake-up call for Europe, as AI has the potential to be a key driver of productivity, innovation, and competitiveness.
Eighty percent of workers in manufacturing and finance who use AI report that it has improved their performance at work, and the OECD estimates that AI could increase annual aggregate total-factor productivity growth by between 0.25 and 0.6 percentage points, and labor productivity growth by between 0.4 and 0.9 percentage points.
These gains are far from automatic, however. If companies fail to invest in the skills needed to use AI effectively, they risk seeing their technology investments underperform, while competitors that successfully combine AI with a skilled workforce will be best placed to capture its productivity benefits.
Building an AI-ready workforce does not mean every employee needs to become a machine-learning expert. On the contrary, according to the OECD, fewer than 2% of workers will require advanced AI development skills.
Most employees will need strong digital capabilities, data literacy, and the ability to work confidently alongside AI systems. Equally important are the human skills that AI cannot easily replicate: critical thinking, problem-solving, creativity, communication, and sound judgment.
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In the age of AI, Europe’s competitive advantage will depend on whether it continues to invest in its people. The good news is that businesses are already taking steps, and they are paying off: More than half of AI users in finance and manufacturing report receiving employer-funded training, while about two-thirds of employers in those sectors have responded to AI-driven skill needs by retraining and upskilling their existing workforce.
However, businesses cannot shoulder this responsibility alone, and the European Union will need an ambitious strategy to ensure that skills do not become a bottleneck to AI adoption and productivity gains. The EU has already launched important initiatives, such as the digital skills academies and the AI literacy requirements of the AI Act.
The pace of technological change will demand sustained investment and a coordinated approach. In particular, the impact of AI on evolving skill demands will need to be closely tracked to ensure that training programs are aligned with the needs of the AI era, while businesses — especially SMEs — must be given access to the training and support they need.
Governments, employers, and workers must share responsibility for creating a culture of lifelong learning, where reskilling is not a response to disruption but a permanent feature of a modern economy. By doing so, Europe can ensure that its workforce is equipped to harness the benefits of AI and maintain its competitive advantage in the global economy.
Investing in people is essential for AI adoption and productivity gains. Europe’s ability to do so will be critical to its success in the age of AI, and it is an area where the Organisation for Economic Co-operation and Development has provided valuable insights.
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