The workforce is evolving faster than ever.
The skills that employers will need are projected to change by 50% by 2030 (from 2016), and generative artificial intelligence is expected to accelerate that change to 68%, according to research by Microsoft and LinkedIn.
"When training isn’t timely or contextual, both business progress and employee growth stall."
Jim Link
SHRM-SCP, Chief Human Resources Officer
Traditional learning and development (L&D) models can’t keep up. As AI reshapes how work gets done — and the skills required to do it — organizations are under pressure to deliver immediate, more personalized training embedded in daily workflows.
Globally, the market value of L&D services is expected to grow from $378 billion to more than $478 billion between 2023 and 2030, driven by technological advancements and increasing demand for skills development. According to SHRM’s 2025 L&D Executives Priorities and Perspectives report, 1 in 3 L&D executives (33%) reported skills training as a top priority for the next year, with top focus areas including role-specific training and personalized learning paths.
“AI is reshaping every corner of organizations, from operations to strategy, and L&D is no exception,” said Andy Biladeau, chief strategy officer at SHRM. “As digital transformation accelerates across every function, learning and development can’t remain static. It has to evolve as fast or faster than the organizational needs, becoming more agile, data-driven, and integrated into the flow of work.”
This shift marks the end of one-size-fits-all training, Biladeau said. Leading organizations will move beyond static upskilling courses to embrace AI-driven, real-time learning, he added. This new approach is strategic, contextual, and individually tailored, enabling employees to keep pace with changing business demands.
The State of Training in 2025
Skills gaps are widening as companies navigate rapid technology adoption, shifting market conditions, and an evolving business landscape. Organizations must upskill employees faster and more efficiently. In fact, 91% of L&D professionals said that continuous learning is more important than ever for career success, according to LinkedIn’s Workplace Learning Report 2025.
Companies are investing heavily in upskilling, but much of it is missing the mark — largely because training is not aligned with individual roles, schedules, or priorities. For instance, SHRM research found that U.S. workers dissatisfied with current AI upskilling and reskilling opportunities cited limited relevance to their current roles (33%), poorly scheduled training sessions that are difficult to attend (39%), and limited time to participate (50%). Leaders feel the same tension: While more than half of organizations (53%) said they prioritize employee upskilling and reskilling, only around 1 in 5 (21%) believe they are doing it effectively.
According to Gallup, effective training is role-specific. Over a third of employees (39%) reported that role-specific skills training would be most beneficial to their development. Yet, in today’s fast-paced, personalized world, too much corporate L&D remains slow and disconnected from employees’ day-to-day work, becoming more of a hassle than a benefit.
In a world ruled by algorithms, traditional training is increasingly viewed as generic and poorly integrated into workflows, said Hagai Horovitz, co-founder of training and learning platform provider Bites, in an episode of SHRM’s The AI + HI Project podcast. “If we’re not getting something that’s super interesting to us, we’re not going to spend any time on it,” he said.
Drawing a parallel to social media, Horovitz believes that engaging with professional learning content should mirror how we consume personal content, with newsfeed-style recommendations tailored to individual interests and career trajectories.
“When training isn't timely or contextual, both business progress and employee growth stall,” said SHRM CHRO Jim Link, SHRM-SCP. Managers need agility; employees need visible career pathways. Yet, outdated L&D systems deliver neither, Link explained.
“To remain competitive, organizations must do more than speed up training — they must use AI to make learning smarter, more personalized, and aligned to real-time work,” he said.
Credential
Skills-First Specialty Credential
Transform your development and performance strategies with the SHRM Foundation Specialty Credential. Learn how to improve retention and increase workforce agility through skills-first practices, all while earning 16 PDCs.
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91% of L&D professionals said that continuous learning is more important than ever for career success
LinkedIn: Workplace Learning Report 2025.
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Over a third of employees (39%) reported that role-specific skills training would be most beneficial to their development.
Gallup: Addressing the Barriers Blocking Employee Development
What the Data Reveals: Skills, Retention, and ROI
Research has shown that L&D delivers return on investment (ROI) by playing a critical role in creating organizational alignment, underscoring the growing urgency to address skills gaps, preparing workers for AI-driven change, and meeting career growth demands.
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The Skills Gap Is Widening
- According to SHRM’s 2025 Talent Trends report, over a quarter of organizations (28%) said filling full-time roles now requires candidates to possess new skills — and nearly half of these roles (47%) are existing positions that demand new skills requirements.
- Over half of CHROs (53%) said they expect increased investment in rapid skills development to help employees adapt alongside AI, according to SHRM’s 2025 CHRO Priorities and Perspectives report.
- In Gallup research, 41% of employees said lack of time for training is their biggest L&D obstacle.
Insight: Hiring your way out of skills shortages is no longer sustainable. Building skills internally is now a strategic necessity.
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Upskilling Drives Retention — Especially for Early-Career Talent
- Nearly 9 in 10 organizations (88%) are concerned about employee retention, and providing learning opportunities is the most common retention strategy organizations use, according to a recent LinkedIn survey.
- SHRM research also revealed that twice as many recent graduates — 65%, versus 32% — would stay in their current role for four or more years if given opportunities to build in-demand skills.
- And 81% of employees who are dissatisfied with their roles said they believe their skills are misaligned with their organizations’ strategic priorities, according to Skillsoft research.
Insight: Career growth, not career perks, fuels employee loyalty — especially for Generation Z and younger Millennials.
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ROI of Upskilling and Continuous Learning
- Nearly 9 in 10 organizations (89%) reported that upskilling is more cost-effective than hiring new talent, according to a 2025 Pluralsight report.
- According to Gallup, companies that double the number of employees who feel they have opportunities to learn and grow at work could see a 14% increase in productivity and 18% increase in profit.
Insight: Developing your workforce costs less than replacing it.
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Strategy & Leadership
Experience the next evolution in HR leadership. Join the SHRM Strategy & Leadership Seminar to master the upskilling strategies and agile leadership capabilities that empower teams to adapt, innovate, and excel in today’s fast-changing workplace.
2026 Predictions: Real-Time Upskilling
The future of L&D is real-time and personalized. “AI-powered platforms will deliver micro-lessons and curated resources, integrated into employees’ daily workflows,” said Kenny Pyle, HR technology lead analyst at SHRM.
This shift is already underway. According to SHRM’s 2025 Talent Trends report, nearly half of organizations that use AI to support L&D (47%) leverage it to recommend personalized learning opportunities for employees. Pyle explained that these platforms can map employees’ skills gaps, career goals, and even personality traits to deliver targeted development paths. By integrating with tools such as Slack and Microsoft Teams, they deliver learning prompts directly within employees’ normal workflows, reducing HR’s need to manually curate training.
In a tight labor market, this is becoming a competitive differentiator. Link emphasized that AI-powered career development is one of the most effective ways to improve retention. “When employees can visualize a clear path for growth within their organization, they’re more engaged, more loyal, and more likely to see their employer as a long-term partner in their success,” he said.
Salesforce offers a glimpse of what’s ahead. Its AI-powered, internal Career Connect platform recommends learning paths, alerts employees to internal roles, and tracks emerging skills. By Q1 2025, half of all open positions were filled by existing employees — demonstrating how AI-driven upskilling fuels retention and internal mobility.
How-to Guide
How to Identify Upskilling Opportunities Through Training Needs Assessments
Upskilling starts with understanding skill gaps. Explore how to conduct a needs assessment to empower employees and align their growth with business goals.
By Q1 2025, half of all open positions were filled by existing employees — demonstrating how AI-driven upskilling fuels retention and internal mobility.
AI-Powered Learning in Action: Five Takeaways for L&D Success
“As AI reshapes how we work, there’s a new learning imperative,” said Jayney Howson, senior vice president of global learning and development at cloud software company ServiceNow.
To keep pace, HR must make L&D programs faster, smarter, and more deeply integrated into everyday work. Organizations can achieve this by:
Organizations that shift from traditional training to real-time, AI-powered upskilling position themselves to anticipate their talent needs, rather than react to gaps in their capabilities. Embedding AI-powered learning into workflows can foster a culture in which employees and businesses grow at the same pace and in the same direction.
eLearning
HR Department of One: Developing Targeted L&D Solutions
Small team? Big impact. This eLearning module provides clear, proven methods to design and deliver impactful employee development, regardless of budget or team size.