Understanding the impact of artificial intelligence on skills development

Artificial intelligence (AI) has produced new teaching and learning solutions that are now undergoing testing in different contexts. In addition to its impact on the education sector, AI is substantially altering labour markets, industrial services, agriculture processes, value chains and the organization of workplaces in particular. Technical and vocational education and training (TVET) contributes to sustainable development by fostering employment, decent work and lifelong learning. However, the effectiveness of a TVET system depends on its links and relevance to the labour market. As one of the major drivers of change, there is a need to better understand the impact of AI on labour markets, and consequently on TVET systems. All TVET institutions should develop an understanding of the current and future importance of AI and begin to incorporate its use into their planning.

This paper uses desktop research, policy analysis, case studies, sector reviews and semi-structured interviews with education and training practitioners to examine AI and the ways in which AI is expected to continue changing economies and labour markets. The work highlights how intermediate-level work will be further affected and how education and training institutions can harness new technological and procedural developments to improve their own responsiveness to the demands of the labour market and society. It is hoped that this work will be of value to policymakers, TVET administrators and practitioners and the international community invested in skills development.

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