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  • The Skills-Based Transformation has Arrived

The Skills-Based Transformation has Arrived

If you are not ready to lead your company into the new skills-based paradigm, then you should step aside to allow those who are to take charge.

Why it matters: After a year as CEO of my first AI company, I decided to step down.

  • The CTO and CRO demonstrated a greater investment in this company.

  • Consequently, I spent the next year and a half helping hedge funds implement AI trading.

  • This experience ultimately led to the formation of my second AI company, which a larger technology firm later acquired.

Between the lines: For executives who are too afraid to undertake the daunting task of leading a company from one business era into another, they should step back and reassess their approach.

  • The reason is that this change is occurring regardless of our actions.

  • For companies to thrive in the new paradigm, they must take the necessary steps to operate in it.

  • It's an all-or-nothing situation.

  • The only question is how long it will take to get there.

Context: While it starts with Enterprise AI, the result is a total transformation of how the business operates.

  • According to a 2025 study by the World Economic Forum (WEF), the shift from role-based jobs to skills-based organizations is expected to be completed by 2030.

  • However, many companies are already implementing it, with many more planning to transition by 2026.

By the numbers: Research from Deloitte indicates that organizations adopting a skills-based approach (SBA) are 57% more likely to be agile, 107% more likely to allocate talent effectively, and 98% more likely to retain high-performing employees.

  • The World Economic Forum (WEF) predicts that AI and automation may displace 85 million jobs by 2025.

  • However, the WEF anticipates the creation of 97 million new positions by 2025 and 170 million new jobs by 2030.

Go deeper: Interested in learning more about SBOs, the role of AI, and how to get started? Reach out to Todd Moses & Co.