Human Capital Management – Learning in the Age of AI

As an entrepreneur, how can you reframe the impact of innovative and disruptive technologies? Are they really an opportunity for your business rather than a threat? We recently posed these questions to business owners at the ISA – Association of Learning Providers’ annual business retreat. Like in many areas within Human Capital Management, learning and development players are experiencing a wave of disruption that is driving innovation within the industry. For example:

• 85% of jobs that will be present in 2030 don’t exist today.
• Upskilling is a necessity in today’s workplace. Skill sets for jobs have changed by around 25% since 2015 and are expected to double by 2027. 73% of businesses lack candidates with the required skillsets for open positions.
• The average employee only has 24 minutes a week to devote to learning new skills, making efficiency a key for today’s learning tools.

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These challenges will only intensify as forces impacting human capital converge – including technology, demographics, and socio-economic drivers.

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Last month, we had the pleasure of presenting at the ISA - Association of Learning Providers’ annual business retreat in Scottsdale, Arizona. This opportunity allowed us to connect with business leaders in corporate learning and talent development to discuss trends we are seeing. Our presentation centered on disruptive technologies, fueled by significant capital raised in recent years.

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We highlighted four of the disruptions impacting Learning & Development:

1. ‍Micro-learning and Credentialing: Micro-learning meets the needs of modern learners who demand flexibility and instant access to information. Micro-learning not only enhances engagement and retention but also offers the opportunity for learners to apply their newly acquired skills and knowledge in real-life scenarios. Another trend associated with micro learning are micro-credentials, or smaller, more focused certifications, that will continue to gain popularity as employees seek to demonstrate their expertise in specific areas.
2. ‍Virtual & Augmented Reality: VR/AR provides a highly immersive and interactive learning environment that enables learners to experience real-life scenarios and develop skills through practical application. Studies have shown that VR/AR is up to 4 times faster than traditional learning methods, such as classroom-based training or e-learning modules, and 1.5 times faster than desktop learning. Additionally, VR/AR has the potential to reduce training costs, as it eliminates the need for expensive physical training equipment or facilities.
3. ‍Gamification: Keeping employees engaged during learning has been a key issue for industry players, as traditional methods have often failed to achieve high levels of engagement. Gamification has emerged as a solution to this problem, with studies showing that it has led to 85% of employees being more engaged during workplace training. By incorporating game-like elements such as points, badges, and leaderboards into learning activities, gamification can create a sense of competition and motivation among learners.‍
4. Artificial Intelligence: Perhaps the most headline grabbing disruption is the potential impact of Open AI/Large language models. You have likely heard of ChatGPT (or Chat Generative Pre-Trained Transformer), which recently received a $10 billion investment from Microsoft. In just 2 months, ChatGPT reached 100 million monthly users: a fraction of the time it took giants like TikTok & Instagram. There are many implications for the use of AI in an employee’s learning journey, such as identifying knowledge gaps and tailoring learning experiences to individual employees.

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The intertwined use of technology and scientifically-backed techniques will be pivotal in the evolution of the Learning and Development Industry. In order to stay competitive, companies will need to consider the four disruptors and how they can be applied to their business. However, full implementation of innovation does not happen overnight. While people are extremely excited for what products like Chat GPT could mean for the industry, it will take time to fully deliver on the value proposition. However, change is coming faster and faster, as an industry practitioner noted:

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"This is like if the Industrial Revolution slammed into the dot-com era and made a baby traveling at a million miles an hour". –Todd Michem, CEO, AMP Learning & Development

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As we concluded the presentation, we asked the audience to consider the impact of these disruptions on their businesses and the industry as a whole. The spur of innovation within learning and development is a double-edged sword. While there is an element of threat in terms of new, competitive solutions entering the market, there is also an immense opportunity. We expect those who capitalize on the disruption within L&D in the coming decade to be well positioned in this competitive and dynamic market.

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DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.