10.05.25

AI and the future of work

Insights Report

Artificial intelligence is reshaping work at an unprecedented pace, creating opportunities and challenges across all industries. Unlike previous technological shifts that primarily affected blue-collar roles, AI is transforming knowledge-based and cognitive tasks. This analysis examines how organizations can navigate AI transformation through strategic, human-centered approaches that prioritize augmentation over replacement.

Summary

This report examines artificial intelligence's transformative impact on the global workforce through a human-centered lens. The study draws from leading research institutions and consulting firms to explore how organizations can navigate AI adoption while prioritizing human well-being and continuous learning. The analysis focuses on practical strategies for workforce development, skills evolution, and organizational change management that enhance human capabilities rather than simply replacing them.

Key Insights

  • Unprecedented scope of workplace transformation - Unlike previous automation waves, AI targets cognitive and non-routine tasks across middle- to higher-paid professions, fundamentally altering how knowledge work is performed across industries.
  • Critical skills gap demands immediate attention - While 59% of the workforce will require skill changes by 2030, nearly half of employees report inadequate AI training support. Analytical thinking emerges as the most essential core skill, with 70% of employers considering it critical.
  • Human-centered approaches drive optimal outcomes - Research reveals workers prefer collaborative AI relationships over replacement scenarios. Organizations that involve employees in AI design and implementation see more successful adoption and better workplace outcomes.
  • Strategic change management essential for success - Effective AI integration requires transparent communication, phased training programs, robust governance frameworks, and inclusive strategies that address diverse workforce demographics and multigenerational needs.

By 2030, 59% of the workforce will need new skills - yet nearly half report inadequate training support, highlighting the urgent need for strategic workforce development.

Methodology

The research examines AI's impact on the future of work through analysis of publicly available information from leading global organizations including consulting firms (McKinsey), international bodies (IMF, OECD), academic institutions (Stanford, Wharton, MIT), and think tanks (Brookings Institution, World Economic Forum). The analysis focuses on human-centered AI approaches that prioritize human well-being, examining workforce disruptions, skills evolution, and implementation strategies across industries and business functions.

Skills evolution 2025-30: 41% no training needed, 29% upskilled in role, 19% upskilled/redeployed, 11% unlikely.
Authors
Emily Watson

TIAA Institute

Fran Mastry

TIAA Institute

Sign up for the TIAA Institute newsletter

Get the latest research and insights straight in your inbox

We are sorry.

The service that receives your request is unavailable at the moment. Please try again.