The rapid advancement of AI, especially genAI, presents a profound challenge for businesses across sectors. There’s a significant skills gap – estimates suggest a staggering 60-80% of employees need reskilling to stay relevant in the face of AI disruption.
People Matters spoke with Accenture’s Kishore about the strategic response to this challenge, highlighting Accenture’s investment in LearnVantage—a comprehensive technology learning and training service—and its acquisition of the online learning platform Udacity.
The global lead for Accenture LearnVantage talks about learning beyond traditional learning platforms to a unified approach that streamlines the entire learning journey, encompassing talent strategy, assessments, content curation, certifications, and even access to a global network of mentors.
Kishore delves deeper into all this and the growing importance of industry-specific learning in an interview with Pushkaraj Bidwai.
Here are the edited excerpts:
Pushkar: Two-thirds of the workforce in Asia is predicted to require reskilling by 2030, a collaborative approach is crucial. How can we bridge the reskilling gap and ensure a future-proof workforce?
Kishore: The enterprise learning and development market today stands at US$380 billion and is poised to become a staggering US $535 billion industry in the next few years.
However, the key challenge lies in the agility and speed required for skilling in the age of AI. Unlike previous technological advancements with slower adoption rates, AI is fundamentally changing how work is done across all functions. Innovation and upskilling are no longer optional for employees to stay relevant. It’s about understanding how new tools are transforming not just individual jobs, but entire job families. This impact will be felt across every department, from sales and marketing to finance.
Even supposedly less affected sectors are anticipated to experience a 10-20% impact. This necessitates a fundamental shift in mindset and a commitment to reskilling the workforce. Reports over the past decade also reveal a rise in “skilling” as a top challenge, having previously ranked as low as number six or seven.
Pushkar: The L&D market is booming, but it’s also becoming increasingly crowded. What makes LearnVantage stand out from the pack? Is it the laser focus on industry-specific content, or is there something else entirely that sets you apart?
Kishore: Traditionally, the responsibility for learning and development resided solely within the purview of the HR department. However, today C-suite leadership are actively engaged in talent development strategies as part of their boardroom agenda. Leaders are prioritising crucial questions: “How are we nurturing and developing our talent pool?” and “Are we adequately prepared for the disruptive forces of AI?” Chief Digital Officers, Product Officers, and Information Officers are joining the table alongside CHROs. Business leaders understand the impact on their bottom line – potential redundancies, productivity changes, and disruptions to work styles.
Our focus lies in three core areas. Our experienced consultants design hybrid training programmes tailored to specific skills gaps. We partner with Udacity to support clients on their digital transformation journeys. And we have relationships with many prestigious universities including Stanford and MIT.
We also have strong partnerships with other content providers to ensure access to a wide variety of learning resources beyond our core offerings. One of our key differentiators is our 1400-strong global mentor network. Instead of bothering a friend, you can connect with a dedicated Udacity mentor who can coach you and offer personalised guidance.
Pushkar: That’s a very interesting point about c-suite leaders taking ownership of talent development. Do you think this increased focus on talent development is reflected in CEO scorecards and performance metrics?
Kishore: I’m seeing a lot of CEOs proudly showcasing their talent development efforts. Metrics like the number of AI professionals they have, the revenue generated through AI initiatives, and the talent pool’s proficiency in AI are becoming key talking points. The C-suite and boards are actively involved in ensuring they have the right people and skillsets in place.
In large organisations, talent development, skills inventories, and current talent state discussions are happening quarterly. These topics are also being raised during analyst conferences and investor discussions. Valuations are increasingly reflecting whether a company has the right talent pool to drive future growth. This focus on talent in the face of disruption is absolutely the right approach.
Pushkar: One big challenge in the L&D space is adoption – getting people to actually use the platform. Completion rates for many platforms are quite low, often between 25-27%. With significant investments being made (with budgets ranging from $380,000 to $560,000), how does LearnVantage address this adoption issue and ensure a better return on investment for companies?
Kishore: Low adoption rates and a disconnect between the RoI on learning spend and business needs are major pain points in the industry. In the past, the market was fragmented, with buyers and users not always on the same page. This led to a lot of content being purchased but very little of it being used (as you mentioned, with completion rates as low as 10-20%). Simply buying content won’t solve the problem of reskilling your workforce.
Our approach involves enrolling users, assessing their skill levels, and then curating personalised learning pathways with the most relevant content. We leverage our mentor network, which may include Accenture experts, to deliver targeted learning aligned with business needs.
Our AI-powered platform allows users to ask questions and get personalised course recommendations. We also leverage Udacity’s sentiment analysis to understand learner engagement. We believe in the power of certifications – badges and credentials incentivise completion and showcase new skills on LinkedIn and internal platforms.
Pushkar: LXPs offer personalisation, but busy professionals across roles need seamless workflow integration. How do you address this learning-in-the-flow challenge?
Kishore: Forcing learning into an already packed schedule isn’t effective. Our approach is to provide high-quality, bite-sized chunks of critical information. We invest significant time and resources into content creation, ensuring it comes from the best authors in the world. We maintain a curated selection focused on specific needs. Udacity, for example, offers 350+ courses and over 75 highly focused nano-degrees. Our platform’s recommendations are also closely aligned with individual assessments, eliminating the need for users to sift through thousands of irrelevant courses.
For busy executives, we offer targeted content like 2-3 hour board-level sessions on the impact of genAI on businesses. For business leaders, we have interactive 2-day workshops where they can get hands-on experience with technology through team assignments. These workshops are led by top-notch instructors, including professors and PhDs. Professor Majd Sakr, a professor from Carnegie Mellon University, is the Chief Learning and Research Officer for Accenture LearnVantage, ensuring it stays at the forefront of learning.
For the technology talent pool, we leverage assessments and courses to deliver targeted learning experiences. We also incorporate industry benchmarks. We challenge business leaders to consider their desired talent pool positioning.
We establish clear strategic goals with business leaders to ensure learning initiatives directly support their aspirations. If a company wants to be a global leader, their learning investment will be more significant than if they want their employees to understand basic trends. This targeted approach removes resistance to training because it’s demonstrably linked to business objectives.
Pushkar: That’s fascinating, especially with Accenture’s large Indian workforce and client base. How do you see the skill development challenges in Asia, particularly India, differing from those in developed economies?
Kishore: While India has its own skill development challenges, it’s important to recognise that Indian talent is solving problems for the global market. Many Global Capability Centers (GCCs) are located in India, and their success hinges on having a highly skilled workforce. This is why it’s crucial for global corporations to invest in upskilling and reskilling their talent pools in India.
India’s projected rise to become the third or fourth-largest economy will necessitate significant investments in skilling for Gen AI and other emerging technologies. The same talent pool will need to develop the necessary skills to address the needs of the Indian market, which is poised for a significant technological leap.
We’re seeing increased focus on skilling from Indian state governments. Companies in India are proactively preparing their talent pools for the influx of manufacturing jobs in semiconductors, aerospace, and even automotive. The growth in electric vehicles and related technologies also demands the need for a skilled workforce.
Our annual investment of $1 billion supports 40 million training hours for our 750,000-strong workforce, with a large portion based in India. This extends to our clients as well. For example, we’ve trained top leaders around the world, but a key request was to equip their Indian teams with the same knowledge and capabilities to effectively challenge and support them.
Pushkar: The skills gap is a persistent challenge, and Accenture’s entrance into the enterprise learning market signifies a long-term play. Looking ahead (2024-2026), what key trends will shape the future of enterprise learning? How will these trends impact upskilling approaches?
Kishore: Our $1 billion investment reflects our belief that the need for upskilling is just beginning. The market itself underscores that – projections show it will reach $535 billion by 2027.
We anticipate consolidation in the currently fragmented market of content providers and other learning solutions. Stronger, more strategic players will emerge who can address the entire learning experience, from talent strategy to content delivery, university partnerships, assessments, and certifications.
Our goal is to be the number one scaling provider in this rapidly growing market. We are well-positioned to address the market’s needs not just for the next few years, but for the foreseeable future.
Pushkar: Given your extensive experience across various domains in business and technology, what are three key pieces of advice you’d give to CXOs as they make critical decisions? What pitfalls should they avoid?
Kishore: Recognise that skilling and reskilling your workforce is not a secondary concern. It must be a top priority for any organisation seeking to remain relevant and transformative.
Second, avoid a fragmented approach to learning and development. Developing a comprehensive, integrated plan is crucial. This includes everything from talent strategy and assessments to content creation, learning delivery, and certifications.
Finally, CXOs must be forward-thinking and actively engage with emerging technologies like GenAI. The pace of disruption is accelerating – what used to take five years to impact a function can now happen in six months or even faster. Stay close to new developments in AI and understand their potential impact on your business to adapt your strategies and workforce development plans.