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The World Economic Forum’s May 2026 outlook says skills mismatches, not talent supply, are the main workforce challenge, and it names job redesign, upskilling and responsible AI as top priorities.
CPOs are shifting from job titles to skills, using skills maps, internal talent marketplaces, and hands-on learning, as seen at Cisco and Aramco.
Better measures, such as skills gained and time to capability, are replacing course completion rates.
Chief people officers (CPOs) no longer treat training as a yearly event. They now see skills development as a core business task. Job needs change fast, and AI is reshaping daily work. Many firms also face a skills gap even when hiring looks easy.
This article explains how chief people officers are redesigning skills development, using data from the World Economic Forum and views from leaders at Cisco, Siemens and Aramco. It covers skills-based planning, hands-on learning, AI training for all staff and better ways to measure results.
The World Economic Forum’s Chief People Officers’ Outlook for May 2026 shows why. Its survey, run in January and February, draws on a community of more than 140 people leaders. About 50% expect talent availability to improve, while 30% expect it to get worse. The report says skills mismatches, not total supply, are the real problem.
It lists three priorities: redesigning job roles and structures, expanding upskilling and reskilling, and scaling responsible AI across the workforce.
Siemens’ Annette Kraus says resilience means scaling skills faster than disruption. Siemens also notes that Germany has high unemployment alongside many unfilled STEM jobs, while US manufacturing may need up to 3.8 million workers by 2033.
Many CPOs are moving away from job titles and toward skills. The World Economic Forum describes a common playbook, where firms invest in skills over roles. In practice, this means mapping the skills people already have and linking them to open work.
A skills map can show rare skills, gaps, and future needs. Internal talent marketplaces help here. According to i4cp, pairing skills data with such marketplaces allows faster redeployment of talent and better forecasts of future needs. About 50% of CHROs in its research name workforce planning and work redesign for AI as a 2026 priority.
Career paths are changing too. Analysts at Paradigm IQ say CPOs must redesign career architectures to support lateral moves and skill-based progression.
Also Read: Chief People Officer 2027 Checklist: 10 Workforce Priorities for the AI Era
Static courses are no longer enough. At Cisco, 91% of employees learn through hands-on experimentation, and the company prioritizes real-world use over traditional training. Katsoudas says leaders matter most, as adoption speeds up when they use AI themselves.
She also notes that the people closest to new tools are often not the most tenured. Aramco takes a similar route with digital platforms, immersive simulations, and mentorship networks for lifelong learning. Aramco’s Faisal Al Fehaid says the focus is on capability breadth and depth, not sheer hiring volume.
Also Read: How Chief AI Officers are Moving Companies from AI Pilots to Production
AI training has moved beyond tech teams. Cisco reports that 77% of employees say AI raised their productivity, and 73% say it improved quality, with 5 to 6 hours saved each week. The company also runs a Working with AI program and a reverse mentoring model, where strong AI users coach others, including senior leaders. Katsoudas says AI adoption is becoming an early sign of potential. Fair access matters too. Paradigm IQ says CPOs must make sure AI training scales equally, so no group is locked out of future work.
Course completion alone says little about real skill growth. Paradigm IQ suggests CPOs measure skills gained instead of courses finished. Heidrick and Struggles notes that enterprise CPOs are testing measures such as time to capability and talent density.
Analytics Insight adds that programs should link to clear needs, such as data analysis, sales quality or client service. i4cp also tracks skills readiness, defined as steady confidence that staff have the abilities needed for the next one to three years.
Chief people officers are redesigning skills development to match a workplace that changes faster than any yearly training plan. Data from the World Economic Forum shows that skills mismatches, not talent supply, now define the challenge. Leaders at Cisco, Siemens and Aramco are responding with skills-based planning, hands-on learning, AI training for all staff and clearer career paths.
Many also track skills gained rather than courses finished. Firms that link learning to real business needs, give every group fair access and let leaders learn in public are likely to build stronger, future-ready teams. For CPOs, the message is simple: treat skills as a daily habit, not a yearly event.
1. What do chief people officers do in skills development?
They map the skills a workforce has, link learning to business needs, build learning into daily work and track whether skills are improving.
2. Why is skills development a top priority now?
The World Economic Forum’s May 2026 outlook says skills mismatches, not total talent supply, are the defining challenge. AI is also changing jobs faster than yearly training plans can keep up.
3. What is skills-based workforce planning?
It focuses on the skills people have and need rather than fixed job titles. Paired with internal talent marketplaces, it helps firms move people to new work faster.
4. How do companies measure skills development?
Many are moving past course completion. Measures under discussion include skills gained, time to capability, talent density and skills readiness.
5. How is AI training changing skills programs?
Training is now hands-on and open to all staff. At Cisco, 91% of employees learn through experimentation, and strong AI users coach others through reverse mentoring.