The AI Displacement Dilemma: Nearly Half of Workplace Skills Face Obsolescence by 2025

Dec. 29, 2025 /Mpelembe Media/ — This edX and Workplace Intelligence report examines how artificial intelligence is fundamentally transforming the modern professional landscape. The findings reveal a significant skill gap, as executives anticipate that nearly half of current workforce capabilities will be obsolete by 2025. While leadership believes many roles—including executive positions—could be automated, entry-level staff are particularly vulnerable to displacement. Despite a strong desire among staff to gain AI proficiency, many organisations currently lack the robust training and development frameworks necessary to support this transition. Ultimately, the research suggests that companies must prioritise internal upskilling to retain talent and remain competitive in an increasingly automated economy.

The most significant insights from the report are detailed below:

The Rapid Skill Shift: C-Suite executives estimate that 49% of the skills present in today’s workforce will no longer be relevant by 2025, yet 47% of the workforce is currently considered unprepared for this transition.

Automation at the Top: In a surprising shift, 49% of CEOs believe “most” or “all” of their own role should be completely automated or replaced by AI, and 92% of the C-Suite agree it is vital to improve their AI skills within the next two years.

The Threat to Entry-Level Roles: The impact is particularly severe for those starting their careers, with executives estimating that 56% of entry-level knowledge worker roles will be eliminated by AI within the next five years.

The Learning and Retention Crisis: While 82% of employees are eager to learn AI skills, workplace learning programmes are not keeping pace. This has created a retention risk, as 39% of workers say they are likely to quit for a job that offers better learning and development opportunities.

Preferential Treatment for AI Proficiency: AI skills are becoming a major career lever; 83% of executives believe AI-skilled workers should be paid more, and 74% believe they should be promoted more often.

To understand this shift, you might think of the workplace as a fast-moving current; those who do not learn to navigate with AI “paddles” risk being swept away, while those who master them are being propelled into higher-paying and more secure positions.

There isl a critical and widening AI skill gap that threatens both organizational stability and individual career longevity. This gap is characterized by a rapid shift in required competencies, a significant disconnect between leadership and staff perceptions, and a failure of internal training programmes to keep pace with technological change.

The Scale of Skill Obsolescence

The urgency of the AI skill gap is underscored by the estimate from C-Suite executives that 49% of the skills present in today’s workforce will no longer be relevant by 2025. Furthermore, executives feel that 47% of their current workforce is unprepared for the future of work. This is not a distant concern; executives believe that within just one year, 60% of their workforce will require proficiency in developing AI or using AI-powered tools.

Recruitment and Talent Shortages

Organizations are currently struggling to bridge this gap through external hiring.

Talent Scarcity: A staggering 87% of the C-Suite report they are struggling to find talent with AI skills,.

Strategy Disruption: Because of this lack of expertise, 77% of executives say AI is actively disrupting their business strategy,.

Preferential Treatment: The scarcity of these skills has led 83% of executives to argue that AI-proficient workers should be paid more, while 74% believe they should be promoted more often,.

The Perception Disconnect

A significant part of the skill gap is a “perception gap” between leadership and employees regarding the necessity of adaptation.

Automation Risk: While 49% of CEOs and many C-Suite members believe “most” or “all” of their own roles could be automated, only 20% of knowledge workers believe the same about their own roles,.

Future Preparedness: This suggests that employees may not fully grasp how drastically AI will reshape their career trajectories, leading to a lack of urgency in upskilling.

Gaps at Every Level

The skill gap is not limited to technical staff; it extends from entry-level workers to the highest levels of leadership:

The C-Suite: 92% of executives admit it is vital for them to improve their own AI skills within the next two years.

Entry-Level Workers: Executives estimate 56% of entry-level roles will be eliminated by AI within five years,. To survive, these workers must master “prompt engineering” and balance it with human-centric skills like communication and leadership,.

The Training and Retention Crisis

Perhaps the most pressing gap identified in the sources is the failure of workplace learning.

Inadequate Internal Programmes: Although 82% of employees are eager to learn, only 24% are using company-provided programmes to gain AI skills,.

Seeking External Education: Dissatisfaction is so high that 89% of executives and 57% of employees have sought training outside of their company, often paying out-of-pocket.

Retention Risk: This failure to provide adequate training has created a flight risk; 39% of workers (and 51% of Gen Z and Millennials) say they are likely to quit their current job for one that offers better learning and development opportunities,.

To understand this situation, you might view the sudden rise of AI as a new global language that has become the primary requirement for trade; while leaders realise they are largely illiterate in this tongue and are desperate to hire translators, the majority of the workforce has yet to realise the old language is rapidly becoming obsolete, and the “schools” (employers) are not yet equipped to teach the new one.

The impact of AI on entry-level knowledge worker roles by 2028 is predicted to be transformative and, for many, disruptive. Because many entry-level tasks are easily handled by AI tools, these roles are considered particularly at risk of replacement.

The specific impacts identified in the sources include:

Significant Role Elimination: C-Suite executives estimate that 56% of entry-level knowledge worker roles will be eliminated by AI within the next five years (by 2028). Furthermore, 79% of the C-Suite predict that these roles as they exist today will no longer exist, being replaced by an entirely new suite of roles.

A Shift in Job Requirements: For the roles that remain, the nature of the work will shift completely. Executives expect these workers to be proficient in AI, with 60% stating that new starters must master prompt engineering.

Higher Performance and Competition: Even for entry-level positions, there will be higher performance expectations (52%) and increased competition for roles (41%). However, those who possess AI skills may see a career advantage, as 83% of executives believe AI-proficient workers should be paid more.

The “Skill Development” Paradox: A major concern for 85% of executives is that an over-reliance on AI will prevent entry-level workers from developing the foundational skills necessary for their profession. This could lead to 77% of these workers struggling to advance their careers in the long term.

Emphasis on Human-Centric Skills: To stay relevant, the sources suggest that workers entering the workforce by 2028 must balance AI technical skills with interpersonal and leadership skills, as well as hands-on professional experience.

To understand this shift, you might view entry-level roles as the “apprenticeship stage” of a career; AI is essentially taking over the manual, repetitive tasks that used to define this stage, forcing new workers to jump straight into high-level oversight and strategy much earlier than previous generations.

There is a surprising level of agreement among top leadership that a significant portion of the CEO role is suitable for automation. Nearly half of the CEOs surveyed (49%) believe that “most” or “all” of their own role should be completely automated or replaced by AI.

The extent of this potential automation is further detailed by the following findings:

C-Suite Consensus: Beyond CEOs themselves, 47% of the broader C-Suite agree that “most” or “all” of the CEO role should be replaced by AI. Furthermore, 56% of executives anticipate that executive-level roles in general will be completely or partially replaced within the next five years.

Partial Automation: On a broader scale, nearly 9 out of 10 executives believe at least “a little” of their job could be automated, and 83% expect their roles to be redefined by AI within the next year.

Specific Tasks for AI: Executives recognise that AI can handle several high-level functions, including preparing executive communications, generating ideas for new markets and business models, assisting with forecasting, and supporting data-driven decision-making.

Willingness for Reduction: Interestingly, 65% of executives would actually prefer for AI to take over some of their tasks, even if it resulted in lower pay.

Future Leadership Requirements: While roles may be automated, the human element is shifting toward AI oversight; 85% of executives believe the next CEO at their company must have AI experience or knowledge.

The goal of this automation is not necessarily total replacement but to boost effectiveness and free up leadership’s time for more important business activities.

To conceptualise this, you might see the CEO of the future not as a solo pilot, but as the captain of a highly automated ship; while the AI “autopilot” handles the complex calculations, navigation, and routine operations, the captain remains essential for setting the destination and making the final calls when the waters get rough.

Employees are seeking learning opportunities outside of their companies primarily because internal workplace learning programmes are failing to keep pace with the rapid emergence of AI.

The specific reasons for this trend include:

Inadequate Internal Training: Both employees and the C-Suite lack confidence in their company’s current learning and development (L&D) offerings. Specifically, 21% of workers report they are learning AI skills on their own because their employer does not offer the “right training”.

A Need for Future-Proofing: Executives estimate that 49% of current workforce skills will be irrelevant by 2025. Employees recognise this shift, with 72% agreeing it is vital to improve their AI skills within the next two years to remain relevant.

Widespread Dissatisfaction: In the last 12 months, 57% of employees (and 89% of executives) have sought external learning content like courses, webinars, and conferences, with many paying out-of-pocket to access this information.

Low Internal Engagement: Despite 82% of employees being eager to learn AI, only 24% are currently using their company’s internal programmes for this purpose.

Unmet Expectations: There is a significant disconnect between what employees expect and what they receive; 84% of workers believe their employer should provide the training necessary to keep their skillsets up to date. This has led 39% of workers to consider quitting their jobs in favour of an employer that offers better L&D opportunities.

While 81% of workers and 93% of the C-Suite agree that “companies are the new post-secondary colleges,” many organisations are currently failing to fulfil this educational role.

To understand this situation, think of the workforce as travellers in a foreign land where the terrain is shifting daily due to “AI earthquakes”; because their employers are still providing outdated maps of the old landscape, employees are forced to buy their own GPS systems and hire external guides just to find their way.

To advance in an AI-driven environment, entry-level workers should prioritise a dual-track approach that combines technical AI competencies with essential human-centric skills.

According to the sources, the specific skills and areas of focus required for advancement include:

Technical AI Mastery

Prompt Engineering: This is a top priority; 60% of the C-Suite believe entry-level knowledge workers must master the use of AI, specifically through prompt engineering.

AI Tool Proficiency: Within the next year, 60% of the workforce will be required to have proficiency in using AI-powered tools or developing AI.

Generative AI Skills: Workers should focus on both technical skills (programming/engineering AI) and non-technical skills required to operate generative AI tools.

Human-Centric and Durable Skills

Executives believe that because AI can handle routine tasks, human workers must excel in areas where AI is less capable to ensure they can advance into leadership. These include:

Communication and Interpersonal Skills: Mastering the ability to collaborate and communicate effectively with colleagues is essential.

Leadership Skills: Developing leadership qualities early is seen as a key differentiator for career progression.

General Technology Skills: Beyond just AI, a broad understanding of relevant technology is expected.

Professional Expertise and Experience

Hands-on Experience: The sources advise workers to seek hands-on experience in their chosen profession to become true experts, rather than just “users” of technology.

Foundational Knowledge: Executives warn against an over-reliance on AI, noting that 85% fear workers will fail to develop the “key skills” of their profession if they depend too much on automation, which could eventually hinder their ability to move into senior roles.

By focusing on these specific areas, workers can position themselves for preferential treatment; the sources indicate that 83% of executives believe AI-proficient workers should be paid more, and 74% believe they should be promoted more frequently.

To understand this balance, think of AI as a high-speed jet engine; while it provides the power to move faster than ever before, the worker still needs to be the pilot who understands navigation (professional expertise) and communication (interpersonal skills) to ensure the flight reaches its intended destination.

Source: edX Workplace Intelligence AI Report