How to navigate the AI skills gap by aligning leadership vision with frontline capabilities
By Jack Keddie, Regional Vice President, APAC at Skillsoft
As Artificial Intelligence (AI) rapidly reshapes industries, the gap between having an understanding of AI capabilities and the skills to implement AI solutions continues to widen. This divide is particularly pronounced between senior leadership, who drive digital transformation, and frontline workers, who are expected to implement and adapt to these changes and use this technology in their everyday work.
This is reflected in recent research. According to Bain & Company, Australia could see a shortfall of more than 60,000 AI professionals by 2027, with just 84,000 AI specialists available to fill up to 146,000 jobs. Furthermore, the Australian Tech Council projects that AI has the potential to create up to 200,000 jobs in Australia by 2030, but this will need to be met through a combination of entry-level training, upskilling of existing workers and mid-career retraining.
Alarmingly, Australian AI literacy appears to be lagging. A report from KPMG Australia reveals that over 60% of Aussies report low knowledge of AI, versus 48% globally, and under half (48%) believe they have the skills to use AI tools effectively, versus 60% globally. Australians also rank lowest globally in their interest in learning more about AI.
To address this divide, businesses must move beyond top-down mandates and build AI literacy across their entire workforce.
Why businesses need AI literacy now
According to the World Economic Forum’s 2025 Future of Jobs Report, 39% of current skills in the workforce will become outdated within the next five years and 85 million jobs will be displaced, with skills gaps remaining the biggest obstacle to organisational preparedness for future markets. As AI transforms ways of working and skills gaps widen, organisations must act now to equip employees with the knowledge necessary to understand AI applications and leverage them effectively.
First and foremost, businesses must recognise that AI literacy is no longer a nice-to-have, but a business imperative. Employees need a foundational understanding of how AI works, where it adds business value and how it can be integrated into daily operations. AI has the power to enhance efficiency, streamline workflows and improve business operations, transforming organisations across industries. A key element to upskilling efforts beyond understanding general AI capabilities is equipping team members with the ability to identify the opportunities for AI. They should also focus on building the mindset and awareness required to use AI effectively.
For IT professionals, understanding AI fundamentals, such as ethical use, large language modelling and data privacy, is crucial. But technical proficiency alone isn’t enough. Power skills, like critical thinking, communication, experimentation, curiosity and resilience, will be equally important for navigating complex environments and driving innovation. A combination of technical and power skills ensures employees can thrive in their current roles, adapt to evolving technologies and build skills for the future.
To embed AI literacy across the entire organisation, leadership must take an active role in championing AI literacy initiatives. Without visible executive support, companies risk fragmented adoption and widening disparities in AI understanding between senior leaders and frontline workers. AI must be embraced holistically across all levels, from the boardroom to the frontline.
Assessing existing skillsets
Concern over the AI skills gap is growing. McKinsey reveals that almost half (46 percent) of leaders identify skill gaps in their workforces as a significant barrier to AI adoption. The report suggests that now is the time for leaders to set bold AI commitments and to meet employee needs with on-the-job training and human-centric development. But hiring external talent appears to be an even greater priority. According to Microsoft, leaders have already made their land-grab for technical AI talent, with 66% of leaders saying they wouldn’t hire someone without AI skills, and 71% saying they’d rather hire a less experienced candidate with AI skills than a more experienced candidate without them. The gap reflects the broader challenge of staying competitive in a landscape where AI capabilities are impacting the business landscape at a rapid pace.
However, as skill lifespans shorten, especially in areas like machine learning, generative AI and data science, businesses can’t solely rely on external hires to stay ahead. The pace of change means that today’s skills can quickly become outdated and hiring new talent each time a skill becomes obsolete is not sustainable or cost-effective. Instead, organisations should strike a balance between hiring new talent and investing in continuous learning and reskilling for existing teams.
Creating an AI literacy framework
Rather than relying on ad hoc training sessions, organisations should establish structured, strategic AI literacy programmes that equip frontline workers with the knowledge and skills required to identify AI use cases and drive AI adoption. Building this requires a multifaceted approach to learning, including programmes that provide access to foundational AI and data skills, but they are only one piece of the puzzle.
Programmes such as simulation-based learning enable employees to engage with realistic, AI-powered scenarios in a meaningful way. By embedding these learning experiences into workforce development, organisations can future-proof their workforce with the skills needed for the AI revolution.
Additionally, continuous learning and adaptability must be central to organisational culture, equipping employees with current and future required skilling opportunities, as technical skill lifespans shorten. Creating AI literacy frameworks ultimately helps teams stay ahead of technological shifts while building overall resilience.
Achieving organisation-wide AI literacy
AI literacy is no longer just for tech teams. It’s a business imperative across the entire workforce. Australia, however, is at a crossroads, as it falls behind global standards and needs to find a way to upskill the existing workforce to address the significant shortfall of AI professionals predicted over the next few years
For Australian businesses to reduce the AI skills gap and gain ground on other nations, it must bridge the divide between senior leadership and frontline workers.
This starts by assessing existing skill sets, implementing comprehensive AI upskilling throughout the organisation and fostering a culture of continuous learning. In doing so, businesses can build an AI-ready workforce that is both prepared for and on board with their business strategy.
