The Gen AI Skills Gap Is the Wrong Problem to Solve
Organizations are investing in Gen AI skills training. The real constraint is not skills. It is operating model readiness to absorb new capabilities.
Three Takeaways
- 1
Training people on Gen AI tools without changing how work is organized produces marginally faster work.
- 2
Skills without redesigned workflows are expensive investments with bounded returns.
- 3
The organizations capturing Gen AI value addressed operating model readiness before skills gaps.
Every organization is talking about the Gen AI skills gap. Training programs are being launched. Certification requirements are being updated. Vendors are selling AI literacy courses.
Most of this investment will produce marginal returns.
Not because skills do not matter. They do. But because skills are not the binding constraint. Operating model readiness is.
The Absorption Problem
Here is the pattern organizations are experiencing: employees complete Gen AI training, return to their roles, and revert to previous workflows within weeks. Not because they lack skill. Because the work system they operate within did not change.
Gen AI skills without workflow redesign produce employees who can use a tool and a work system that does not leverage it. The capability exists. The absorption capacity does not.
Skills Are Not the Constraint
The binding constraint in Gen AI adoption is not the ability to use a tool. It is the organizational capacity to redesign work around what the tool makes possible.
This requires operating model design capability: the ability to take apart existing workflows, understand where Gen AI creates leverage, and rebuild processes that capture that leverage.
This capability does not come from Gen AI skills training. It comes from operating model expertise.
The Correct Investment Sequence
Organizations that are capturing Gen AI value are investing in this sequence:
First, operating model assessment: Where does Gen AI create the most leverage in our specific context?
Second, workflow redesign: What needs to change about how we work to capture that leverage?
Third, skills development: What do our people need to learn to work in the redesigned workflows?
Most organizations are starting with skills development. They will not close the gap.
The Implication
Stop solving the skills gap in isolation. Solve the operating model problem first. Then the skills gap becomes tractable.
*Informed by KPMG, "HR holds the keys to creating value from generative AI," 2024*
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Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute professional advice. Readers should consult with qualified professionals before making any decisions based on this content.
About GeneralArc
GeneralArc is operating model architecture for the AI transition. Its methodology was built across more than two decades inside the operating models of JPMorgan Chase, McKinsey & Company, Nomura, and Deutsche Bank — leading change across 100,000+ employees.
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