Bridging the AI skills gap

Why your workforce capability strategy needs attention

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  • Insight
  • 6 minute read
  • March 27, 2026

AI is critical, but skills gaps slow progress. PwC’s AI Skills Scanner provides a data‑driven view of workforce readiness to guide AI investment.

 

By Emma Hardy, Meredith Wallace and Aahrabie Arumughasamy

The challenge facing HR leaders today

According to PwC's 28th Annual Global CEO Survey, CEOs aspirations are high for AI. One-third report that generative AI has already increased revenue and profitability in the past year, with half expecting profits to rise further from AI investments. 90% of CEOs believe AI adoption is crucial for achieving their business strategy over the next three to five years. One-third report that generative AI has already increased revenue and profitability in the past year, with half expecting profits to rise further from AI investments. 

But there's a critical disconnect. While leadership recognises AI's strategic importance, 45% of Australian CEOs identify 'internal skills and capability' as the single largest barrier to AI adoption. (PwC’s 28th Annual Global CEO Survey). Your workforce simply isn't ready. 

This isn't just an Australian problem. Organisations worldwide are facing the same fundamental challenge: how do you transform your workforce for the AI era when you don't know where to start? 

The cost of inaction

The stakes couldn't be higher. PwC's 2025 AI Jobs Barometer reveals that industries effectively using AI have seen productivity growth nearly four times since 2022 and three times higher growth in revenue per employee. Meanwhile, organisations that fail to build AI capability are falling behind competitors who are already capturing these gains. 

But it's not just about missing opportunities. Without proper AI literacy and responsible use practices, organisations face significant risks. Employees are experimenting with AI tools regardless of policy – PwC's research shows that while awareness of AI is growing, only 14% of workers use generative AI daily. This creates a dangerous gap where ad hoc usage occurs without proper governance or oversight. 

The workforce transformation challenge is complex. Traditional approaches to skills assessment often fall short because AI capabilities require a unique combination of technical knowledge, practical application skills, and responsible use awareness. And things are moving at pace.  

Why building AI capability matters now

Your people are the key to unlocking AI's potential. Technology alone doesn't deliver value–it's the combination of technology with human capability, innovation and imagination that drives results. Organisations need employees who can: 

  • Understand core AI concepts and limitations 
  • Use AI tools effectively and safely 
  • Create simple AI-enabled workflows and innovations, and 
  • Apply responsible AI practices consistently 

We are starting to understand the AI learning journey from foundational AI knowledge to fluent capability. Many workers are caught in a confidence and capability gap, asking questions like "What is generative AI and how can I benefit from it?" or “What tools are available and how do I use them?”. This gap prevents them from moving up the learning curve to more sophisticated application of AI solutions. 

PwC's 2025 Global Hopes and Fears Survey highlights: 73% of workers who feel supported to upskill are more motivated than those who feel least supported. Access to learning is one of the strongest predictors of motivation. This means your AI capability strategy directly impacts employee engagement and retention.

Introducing AI Skills Scanner: Your workforce AI diagnostic tool

AI Skills Scanner provides business leaders with a clear, evidence‑based view of current AI capability across their workforce, helping them understand where strengths already exist and strategic transformation interventions will deliver the greatest value. For People and Culture teams, the insights enable the design of informed and impactful capability strategies — supporting the design of learning pathways, investment prioritisation and responsible AI practices grounded in real workforce data rather than assumptions. 

It is PwC's rapid workforce AI capability assessment – a 10-15 minute diagnostic survey that provides the data-driven insights you need to build an effective capability strategy. 

AI Skills Scanner goes beyond simply assessment, it is built on PwC's AI technical capability framework. It evaluates your workforce across four distinct levels – Foundational, Emerging, Practicing, and Fluent – in two critical streams: 'Using AI' for daily tasks and 'Building AI' for creating micro-innovations and capabilities. 

The assessment uses realistic, scenario-based questions that evaluate practical application rather than theoretical knowledge. Advanced survey logic ensures participants only answer questions relevant to their capability level, while built-in responsible use indicators identify flags around unfavourable practices such as data governance, automation safety, and policy adherence. 

AI Skills Scanner delivers comprehensive insights through: 

  • Workforce capability profiles: Overall and segmented analysis showing your organisation’s capability profile. 
  • Competency analysis: Detailed breakdown of strengths and critical gaps across specific AI competencies, from basic tool usage to advanced workflow design. 
  • Responsible use assessment: Identification of unfavourable use practices, with clear flags for areas needing attention. 
  • Targeted recommendations: Specific, actionable strategies for capability development based on your unique workforce profile. 

The strategic advantage of data-driven capability planning

AI Skills Scanner transforms workforce AI enablement strategies from guesswork into precision targeting. Instead of rolling out generic training programs, you can: 

  • Focus transformation investments where they matter most: Identify business units and roles where there is existing momentum, and where there are opportunities to uplift capability and awareness 
  • Build on existing strengths: Leverage pockets of higher capability as internal champions and peer coaches 
  • Address unfavourable responsible use patterns proactively: Identify and mitigate responsible use concerns before they become issues 
  • Track progress over time: Establish baselines and measure the ROI of your capability investments through regular reassessment 

The results inform everything from training design to governance frameworks, pilot program selection to leadership development priorities. You'll know exactly where to start, how to sequence interventions, and when your workforce is ready to take on more advanced AI initiatives. 

Your next step: Understanding your current position

The AI transformation window is narrowing. While your competitors build AI-ready workforces, every month of delay means falling further behind in the capability race. 

AI Skills Scanner provides reliable, actionable data about your current AI capability profile in just a few weeks from deployment to detailed results. The assessment is anonymous and confidential, with results reported only at aggregate levels.  

Shift your capability gaps from risk to opportunity. 

Ready to discover your workforce's AI capability baseline and build a data-driven strategy for the AI era?

Contact us today to discuss how AI Skills Scanner can transform your approach to workforce AI readiness. The conversation starts with understanding where you are – and where you need to go.

Authors

Emma Hardy

Partner, Workforce, PwC Australia

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Meredith Wallace

Director, Workforce, PwC Australia

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Aahrabie Arumughasamy

Manager, Workforce, PwC Australia

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