Organizations are struggling to keep pace with the skills needed as artificial intelligence changes the workplace, according to new research from talent management company Talogy.

The study of 207 senior human resources leaders, talent acquisition managers and learning and development experts in the U.S. and U.K. found that 95 per cent of organizations say AI is automating work at least moderately, while 78 per cent report challenges assessing AI skills.

Only 38 per cent of respondents said they feel very prepared to adapt traditional job descriptions and career paths for an AI-enabled workplace.

The research examined organizations across seven sectors: manufacturing, retail and commerce, financial services and fintech, health care, technology, and the public sector and government.

The findings point to a gap between the adoption of AI and organizations' ability to assess the human capabilities needed to work effectively alongside the technology.

Talent assessment frameworks are already widely used, with 87 per cent of organizations using them for most or all roles, the study found. But respondents said those frameworks are often too generic and fail to provide insights specific to individual roles.

Talogy
Talogy

Respondents also identified limited consideration of transferable skills as a weakness in existing assessment approaches.

When asked about evaluating AI fluency, 78 per cent said future assessments should go beyond proficiency with specific technical tools. They said assessments should also evaluate AI readiness, including critical judgment and data literacy needed to use AI safely and effectively and interpret the information it provides.

Among the capabilities identified as most important by HR leaders, AI tool proficiency ranked first at 48 per cent, followed by data literacy at 43 per cent, adaptability at 42 per cent, problem solving at 40 per cent, and judgment and critical thinking at 36 per cent.

The study said the challenge for employers now extends beyond identifying those capabilities to understanding how they work together in real-world situations and how they can be measured consistently.

HR leaders said they want assessment frameworks that can evaluate AI fluency while also being tailored to specific roles and transferable skills.

The research identified three priorities among respondents in both the U.S. and U.K.: scientifically validated methodology, evidence of business impact through case studies, and the ability to integrate assessment tools with existing HR technology systems.

Dawn Curless
Dawn Curless

Dawn Curless, vice-president of global marketing at Talogy, said organizations are having difficulty developing assessment frameworks at the same pace as AI adoption.

"AI is reshaping talent management faster than most HR teams can design frameworks. The challenge organizations now face is defining, assessing, and developing the relevant transferable skills needed to drive better outcomes alongside AI. That's why, at Talogy, we offer a comprehensive range of talent assessments that can be combined to create the perfect solution for every need."

Curless said organizations also need to balance established assessment methods with the ability to tailor them to individual roles and career paths.

"From identifying and developing high potential talent to mapping emotional intelligence and cognitive ability to support a strong company culture, it's vital to combine proven scientific methodology with the flexibility HR leaders need to adapt to specific roles and career paths."