Canadian execs believe they will need to significantly reskill as businesses adopt AI: IBM study

Canadian executives believe that 42 percent of the Canadian workforce will need to reskill as they implement artificial intelligence and automation in their businesses over the next three years, according to a new report by the IBM Institute for Business Value.

The study, Augmented work for an automated, AI-driven world, indicates that 58 percent of Canadian executives are investing in reskilling internally as opposed to hiring from outside (43 percent).

Moreover, Canadian executives rank technology illiteracy as a top talent issue. This was ranked second among global executives. Canadian executives surveyed also confirmed building new skills for existing talent is another important challenge to the organization, closely aligned with the top global challenges.

"Canada continues to face serious workforce shortages and AI is our best opportunity to tackle this challenge as we reimagine how work gets done," said Dave McCann, president, IBM Canada. "As AI becomes more pervasive and adoption accelerates across business, it is critical for leaders to set a plan which leverages people as a core competitive advantage. Taking these steps now in Canada is critical to ensure our industries and organizations maintain leadership and are not left behind."

Canadian executives ranked the most important skills as time management and the ability to prioritize (44 percent), analytics skills with business acumen (41 per cent) and ethics and integrity (39 percent).

The study provided recommendations for leaders to address talent challenges in the era of AI and help their organizations transform for the future, including a focus on skills and operating models. Top recommendations included:

• Put skills at the center of workforce strategy—for today and for tomorrow.
• Invest in talent as much as technology, preparing the workforce for AI and other technology disruption. 
• Redesign the work, leading with the operating model.  Give jobs more meaning by putting the employee in the driver's seat.

The IBM Institute for Business Value, in cooperation with Oxford Economics, surveyed 3,000 global C-suite executives across 20 industries and 28 countries from all major regions in December 2022 and January 2023 about job roles, skills and how work gets done.