The AI Boom Is Fuelling a ‘Human Skills Economy’ — Companies Need to Be Ready

The pace of change is extraordinary, with entire job functions being reshaped in real time and new ones emerging just as quickly. As a result, business success increasingly hinges upon an organisation's ability to help employees work in harmony with technology. ​

New research from International Workplace Group (IWG), the world’s leading platform for work, with brands including Regus and Spaces, underscores why human skills are so critical in AI. The vast majority (90%) of HR leaders believe that failing to prioritise human capabilities is an innovation risk, reflecting a new “Human Skills Economy,” in which empathy, judgment, creativity, and leadership are core to business performance.

Rise of AI: A New Operating Reality for Work

AI is now deeply embedded in everyday workflows across organisations. According to IWG’s survey of hundreds of HR and recruitment leaders, 73% of hybrid teams are already using tools like ChatGPT, and 82% of organisations offer AI training. However, HR leaders say their readiness must accelerate to keep up, with fewer than half (45%) saying they are effectively closing the skills gap, suggesting a significant number of organisations are still lagging in effective AI use.

Humans + AI: The New Performance Model

As the labour market tightens - particularly at the entry level - employers are being forced to rethink what truly drives performance. Research from Randstad and the Institute of Student Employers shows that entry-level vacancies fell by 29% globally between January 2024 and the end of 2025, raising the bar for what differentiates candidates.

While Gen Z brings a clear advantage in technological fluency, skills alone are no longer enough. The real differentiator is AI literacy: the ability to meaningfully apply AI tools in day-to-day work to unlock productivity and new ways of thinking. In fact, research from International Workplace Group shows that nearly two-thirds of younger employees are already helping older colleagues adopt AI, from hands-on coaching to embedding tools into everyday workflows.

Against this backdrop, a new performance model is emerging, in which AI handles technical and repeatable tasks, and human capabilities define impact, leadership, and long-term value. HR leaders are clear about where humans remain essential:

At the same time, boundaries are still evolving. Only 40% believe creativity will remain beyond AI’s reach, signalling a continued shift in how organisations define the line between human and machine capability.

Elements That Can’t Be Replicated: The Enduring Value of Human Skills

Even as automation expands, human skills are becoming the most durable source of competitive advantage. While 40% say missing AI or technology skills can disqualify candidates, two-thirds (66%) of HR leaders now say applicants’ ability to demonstrate human skills matters most in hiring, ranking above experience, technical skills, and education.

This shift is also reflected in evolving hiring signals: 45% of employers say they look for context around career moves and gaps to better understand a candidate’s overall experience and trajectory.

Hybrid work is emerging as a critical environment for developing these capabilities. More than half (55%) of HR leaders say hybrid workplaces are among the most effective settings for building empathy, judgment, and leadership skills.

Increasingly, these environments are seen as spaces where essential human traits like trust, mentorship, collaboration, and decision-making are actively developed and reinforced.

The Bottom Line

As AI reshapes work, organisations face a clear mandate. Success now depends not just on adopting new technologies, but also on strengthening human capabilities and helping technology and humans work as true teammates.

The future belongs to companies that integrate AI while intentionally building environments where human skills thrive.

Mark Dixon, CEO & Founder of International Workplace Group, commented: “Every major technological shift has redefined how we work — from the rise of the internet to email to smartphones. AI is no different, but what sets this moment apart is the speed and scale of change. Some roles will evolve or disappear, while entirely new ones will emerge.

As always, the organisations that resist transformation will fall behind. A key advantage will belong to those who combine AI’s efficiency with the uniquely human skills that drive innovation, leadership, and growth.”

Methodology:

The IWG Human Skills Economy Report was conducted in April 2026 by Mortar Research and targeted 510 HR, recruitment and hiring managers.

About International Workplace Group PLC

International Workplace Group (IWG) is the world’s leading platform for work, enabling companies of all sizes to work more productively and profitably. We create personal, financial, and strategic value for the most exciting companies and well-known organisations on the planet as well as individuals and the next generation of industry leaders. All of them harness the power of IWG’s platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes more than 5,000 locations across 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.

Our brands including Regus, Spaces, HQ and Signature serve millions of people, providing professional, inspiring and collaborative workspaces and all our digital services are available via the IWG app.

For more information

Visit www.iwgplc.com and for more information on partnering with International Workplace Group, see: https://www.iwgplc.com/develop-a-location