How Generative AI is Changing the Skills You Need to Stay Employed

The rise of Generative AI (GenAI) tools like ChatGPT, Copilot, and Bard is shaking up workplaces across industries. But while much of the conversation has focused on how these tools boost productivity or replace specific tasks, there’s another crucial factor at play: how they are reshaping the skills that workers need to stay competitive in the job market.

A recent study from INSEAD and London Business School takes a deep dive into this transformation, analyzing job postings from hundreds of U.S. companies that explicitly hire for GenAI-related roles. The findings are striking: demand for cognitive and social skills is rising, while certain traditional skills are becoming less relevant.

So, what does this shift mean for you? Whether you’re an employee, employer, or just AI-curious, let’s explore how GenAI is reshaping the skills that matter in today’s workplace.

The Big Question: How Does Generative AI Change Skill Demand?

Most of the research up until now has focused on how GenAI changes specific tasks or roles—whether it automates, enhances, or displaces them. But less attention has been given to how GenAI transforms the skills needed to perform those tasks. That’s where this study fills in the gaps.

By analyzing 7.2 million job postings from 378 U.S. public firms (2021-2023), researchers tracked how job descriptions evolved as companies embraced GenAI. Specifically, they identified which skills became more important and which ones started losing relevance.

Here’s what they found:

Cognitive skills (like problem-solving and critical thinking) are now in higher demand for GenAI-related roles—by a whopping 36.7%!
Social skills (like collaboration and communication) are becoming increasingly important in roles that use GenAI—growing by 5.2% after the launch of ChatGPT.
Some skills, like customer service, financial management, and self-management, are becoming less relevant, dropping between 49% and 58% in importance within GenAI-focused job postings.

This suggests that AI isn’t just automating tasks; it’s shifting the very foundation of what employers look for in human workers.

At first glance, GenAI seems like a tool designed to replace complex thinking and communication—after all, it generates text, summarizes reports, and even codes! So why would higher-order cognitive and social skills become more valuable in GenAI-heavy jobs?

1. GenAI Still Requires Human Oversight

While AI can generate content, it doesn’t always get things right. Humans are still needed to fact-check, refine, and apply critical thinking to AI-generated outputs. This makes problem-solving and analytical skills more important than ever.

Think of it like using a high-powered calculator—you still need to understand the math to spot errors or make decisions based on the results.

AI can draft emails, summarize meetings, or even generate reports, but it doesn’t replace human interaction. If anything, with more AI handling routine tasks, employees now have more time for brainstorming, negotiation, and collaboration—all of which depend on strong social skills.

Teams integrating GenAI need good communicators who can bridge the gap between technical and non-technical colleagues and coordinate AI-powered workflows.

3. AI Handles the Repetitive Work—Humans Focus on Strategy

Since GenAI excels at executing straightforward or repetitive tasks, employers are looking for talent with higher-order thinking abilities—people who can understand business goals, interpret AI outputs, and make strategic decisions based on AI-generated insights.

In short? AI is not replacing workers outright but transforming their responsibilities—shifting human contributions toward more valuable, creative, and strategic work.

The Skills Losing Relevance in an AI-Powered Workplace

While cognitive and social skills are on the rise, other skills are becoming less essential. The research highlights three major categories:

1. Customer Service Skills (-53%)

With AI chatbots taking over routine customer interactions, companies are demanding fewer customer service-focused skills. AI can handle FAQs, appointment scheduling, and even initial troubleshooting, reducing the need for traditional customer service workers.

However, this doesn’t mean customer service jobs are disappearing—rather, they are evolving. The remaining roles may focus more on handling complex or high-value customer interactions, which require stronger problem-solving and conflict-resolution skills.

2. Financial and Accounting Skills (-49%)

GenAI is increasingly automating financial data analysis, forecasting, and routine accounting tasks. While finance professionals still play a crucial role, AI is handling much of the number-crunching that was once done manually.

What’s left? A stronger focus on strategic financial planning, decision-making, and regulatory oversight—areas where human expertise is still essential.

3. Self-Management Skills (-58%)

Before AI, workers needed strong self-management skills to juggle busy schedules, remember deadlines, and stay organized. But with AI assistants and automation tools helping manage schedules and reminders, the emphasis on these skills has declined.

AI doesn’t make time management obsolete, but it does mean that future job seekers might need to prove they can work effectively alongside AI tools rather than just manually keeping themselves on track.

What This Means for Workers: How to Stay Ahead in the AI Era

If you’re worried about AI reshaping the job market, the good news is that demand for human expertise isn’t disappearing—it’s shifting. Here’s how you can future-proof your career:

1. Develop Strong Cognitive Skills

Work on your critical thinking, problem-solving, and data analysis abilities.
Train yourself to fact-check AI outputs and interpret insights in a meaningful way.

Focus on effective communication, especially in an AI-assisted workplace.
Strengthen your ability to teach, guide, and work with AI-generated outcomes.

3. Become an AI Collaborator, Not a Competitor

Instead of seeing AI as a threat, learn how to use it effectively to complement your role.
Take courses on AI literacy, prompt engineering, and automation workflows.

4. Stay Adaptable and Embrace Continuous Learning

AI advancements are rapid—stay updated with industry trends.
If certain skills are declining in importance, consider upskilling or reskilling.

Key Takeaways

✅ AI isn’t just automating work—it’s reshaping the skills employers prioritize.
✅ Cognitive skills (like problem-solving) and social skills (like collaboration) are becoming more important in AI-driven roles.
✅ Skills like customer service, financial analysis, and self-management are becoming less crucial as AI takes over routine tasks.
✅ Workers who learn to work with AI—as collaborators rather than competitors—will have the best job security in the future.

The bottom line? Embrace the AI shift and build the skills that will set you apart. AI isn’t replacing human expertise—it’s evolving it. Make sure you evolve with it. 🚀