Training supply shortfalls could slow down the green transition and AI growth

Artificial Intelligence (AI) and the green transition are beginning to transform the workplace, meaning upskilling and reskilling are essential. But is our education and training offering ready to meet the future challenges? Since 2022, the EIT Deep Tech Talent Initiative has been working to address the skills gap by connecting different stakeholders working on deep tech education and training, which also includes the field of AI. While most research focuses on skill demand, little is known about whether training supply meets these needs.

Today we want to highlight to a recently published report from the OECD, that highlights this training supply knowledge gap. ‘Training Supply for the Green and AI Transitions’ assesses how well training aligns with green and AI transitions, as well as their accessibility and flexibility towards diverse target groups. The findings offer policymakers clear insights to build more inclusive, effective strategies for the future of work.

The supply of training is key

As the world shifts towards a net-zero economy and workplaces increasingly begin to implement and use AI, training providers need to respond by providing well-designed courses for skilling, upskilling, and reskilling the workforce. And, if designed well, they can help talent, firms and economies harness the benefits of these transitions and mitigate adverse employment effects.

The report found that in terms of whether the current training supply is aligned with the skills needed:

• The Green Transition: While all 27 OECD countries have strategies and incentives to support green-related upskilling, the supply of green training may still fall short of demand, especially given the 20% of workers in green-driven roles and the 6% in Green House Gas (GHG) -intensive jobs. Training availability is higher in vocational sectors, but overall, only 2.1% to 14.1% of courses include green content, suggesting room for improvement. Commonly, courses are delivered through in-person sessions rather than online, when compared with other types of training. This trend might be attributed to the nature of green-related training, which frequently involves hands-on learning of new technologies, making virtual delivery less feasible.
• Adoption and Diffusion of AI: Although 14 countries offer publicly-funded AI training programs, with a focus on both AI professionals and general literacy, only 0.3% to 5.5% of training courses include AI content. The lack of direct focus on AI skills in broader financial incentives and training initiatives indicates that current supply may be inadequate to meet the growing demand driven by AI adoption.

Training supply to support AI adoption and use

The report found that several OECD countries have introduced publicly-funded, AI-related training programmes to proactively ensure the workforce is well-prepared to leverage the opportunities introduced by this technology. These endeavours are still in their infancy and likely need to be scaled up and implemented across OECD countries.

AI-related training programmes in the report have been classified in two categories:

1. Training programmes in general AI literacy

The influence of AI across domains underscores the need for the general public to acquire proficiency in utilising AI tools, especially considering the digital problem-solving skills gap. A large share of the adult population is lacking basic digital skills for problem-solving in their day-to-day life (OECD, 2019). Given the complexity of AI technologies, this share could be even higher for problem-solving involving AI. Therefore, beyond raising awareness about the emergence, potential and challenges of AI, the general public should also be taught how to efficiently use and interact with AI tools. This could also include training related to the ethics of AI.

2. Training programmes to develop AI professionals

Given the rising need for highly-skilled AI workers, training AI professionals who can develop and maintain AI tools is an important priority in several OECD countries. This includes the creation of new bachelor, master or doctoral programmes, or developing short, non-formal training programmes aimed at upskilling or reskilling employed or unemployed adults to cope with changes brought about by the AI transition.

Training incentives

For training providers

The report suggests that another way to incentivise the provision of AI-related training is to focus on the supply side of training by directly or indirectly supporting adult learning providers, such as vocational colleges, universities and private institutions. This includes efforts to support them develop or update new training programmes, update occupational standards and qualification frameworks, create practitioner networks, and offer Train the Trainer programmes.

For talent

Fifteen of the 21 countries that responded to the policy questionnaire report having financial incentives for training which could be used by workers and jobseekers to cover the costs of AI-related skills training. However, none of these financial incentives is explicitly tied to AI skills. All financial incentives are general in nature and could be used towards funding AI-related skills training, though this was not a requirement for their use. Additionally, in some OECD countries, financial incentives for training are targeted at certain population groups, such as low-skilled individuals, older adults or women.

For employers

With firms at the forefront of the changes induced by the introduction and adoption of AI, firm-provided training can help employers to harness the opportunities of this new technology, by equipping employees with necessary skills. Smaller firms face greater challenges than larger firms in covering the cost of training and acquiring the necessary expertise to support the adoption of AI technology because larger firms are more likely to have a workforce development strategy and HR and management functions responsible for assessing firm training needs and addressing them (OECD, 2021).

Incentives intended to support employers in upskilling and reskilling their employees include subsidies or tax deductions to train employees, employment incentives, apprenticeship programmes, and promotion of private-public collaborations.