AI vs. Upskilling: Why Companies are Investing in Technology Over Employees

A recent article by Gintaras Radauskas, Senior Journalist at Cybernews, highlights a growing trend among companies to prioritize AI investments over employee upskilling. According to a study by Clarify Capital, nearly 30% of businesses are more likely to focus on AI than develop their workforce’s skills, raising concerns about the potential displacement of jobs rather than simple role transformations.

The study, which surveyed over 1,000 American employees and executives, reveals that 86% of executives plan to replace entry-level jobs with AI, and nearly 17% have already done so. This shift in corporate strategy is driven by the cost-effectiveness of AI tools, which are often cheaper than hiring and training human employees.

Over one-third of employees (34%) feel threatened by the growing presence of AI, particularly in roles like data entry, fact-checking, and copywriting. Industries such as information technology (90%), retail (88%), and finance (86%) are leading the charge in AI integration, with healthcare (84%) and marketing (75%) not far behind.

For many companies, AI adoption is about increasing productivity, cutting costs, and staying competitive. However, only 15% of executives cited talent shortages as a reason for implementing AI. On the employee side, 73% of respondents are planning to upskill to stay relevant in the AI-driven job market. In the tech sector, upskilling is becoming crucial, with Gartner predicting that 80% of software engineers will need to adapt within the next three years to meet the demands of new AI-generated roles.

However, job opportunities may be less abundant than they appear. The rise of “ghost jobs” — fake job listings that give the illusion of business growth — has added to the confusion, according to the study.

In conclusion, the shift towards AI investment over employee upskilling reflects a significant transformation in the job market. While AI offers companies cost savings, increased productivity, and competitive advantages, it also raises concerns about job displacement, particularly in entry-level positions. Many workers feel threatened by AI’s encroachment, and upskilling has become a critical survival strategy in this evolving landscape. As AI continues to integrate into industries at an accelerating pace, the balance between technological advancement and workforce development remains a pressing challenge for both businesses and employees.

For further insights, read the full article by Gintaras Radauskas on Cybernews: Companies investing in AI rather than training.