So far, the debate on artificial intelligence has largely focused on computing power, data centers and energy. These are all essential for the European Union to make a success of AI. But there is another constraint that is becoming just as important and possibly even more urgent: people.
Across Europe, businesses are discovering that one of the greatest barriers to adopting AI is not merely access to technology, but the skills needed to use it effectively.
Recent research from the Organisation for Economic Co-operation and Development makes this clear: About 40% of employers in manufacturing and finance that have yet to adopt AI cite skills shortages as an obstacle, while more than half of small and medium-sized enterprises not using generative AI say the same.
Meanwhile, AI is increasing demand for higher-skilled workers, making talent an increasingly scarce and strategic asset.
Complementary human skills
This should be a wake-up call for Europe.
AI has the potential to be a key driver of productivity, innovation and competitiveness. Eighty percent of workers in manufacturing and finance who use AI report that it has improved their performance at work, and the OECD estimates that AI could increase annual aggregate total-factor productivity growth by between 0.25 and 0.6 percentage points, and labor productivity growth by between 0.4 and 0.9 percentage points.
These gains are far from automatic, however.
If companies fail to invest in the skills needed to use AI effectively, they risk seeing their technology investments underperform, while competitors that successfully combine AI with a skilled workforce will be best placed to capture its productivity benefits.
Indeed, 90% of workers in finance and manufacturing who received AI training affirm that it has increased their performance at work, compared with 70% of workers who did not receive it.
Building an AI-ready workforce does not mean every employee needs to become a machine-learning expert. On the contrary, according to the OECD, fewer than 2% of workers will require advanced AI development skills.
What most employees will need, however, are strong digital capabilities, data literacy and the ability to work confidently alongside AI systems. Equally important are the human skills that AI cannot easily replicate: critical thinking, problem-solving, creativity, communication and sound judgment.
The European approach
The good news is that businesses are already taking steps, and they are paying off: More than half of AI users in finance and manufacturing report receiving employer-funded training, while about two-thirds of employers in those sectors have responded to AI-driven skill needs by retraining and upskilling their existing workforce.
Yet businesses cannot shoulder this responsibility alone, and the European Union will need an ambitious strategy to ensure that skills do not become a bottleneck to AI adoption and productivity gains.
The EU has already launched important initiatives, such as the digital skills academies and the AI literacy requirements of the AI Act. But the pace of technological change will demand sustained investment and a coordinated approach.
In particular, the impact of AI on evolving skill demands will need to be closely tracked to ensure that training programs are aligned with the needs of the AI era, while businesses — especially SMEs — must be given access to the training and support they need.
Governments, employers and workers must share responsibility for fostering a culture of lifelong learning, where reskilling is not a response to disruption but a permanent feature of a modern economy.
Europe's competitive advantage has always been built on its people. In the age of AI, that advantage will depend on whether it continues to invest in them.
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