Unlocking AI Potential: Why Companies Hesitate to Reskill Employees

A recent study by Careerminds has shed light on a puzzling trend in human resources as organizations navigate the expanding role of artificial intelligence (AI). While HR leaders express strong belief in the ability of their current workforce to acquire AI skills, many companies are opting to hire externally instead.

Confidence in Internal Talent

According to the research conducted from May 15 to 26, 2026, involving 595 HR professionals and 547 people managers from U.S. firms with 500-10,000 employees, an impressive 92% of HR leaders and 88% of managerial staff are convinced their existing employees could be successfully trained for AI-related roles.

Yet, despite this belief, the reality reflects a different story. A staggering 51% of HR professionals and 47% of managers reported that their organizations are prioritizing external hires for new AI positions, contrasted with just 42% who indicate a focus on redeploying existing employees.

Barriers to Reskilling

One key reason for the reluctance to reskill internally may be the challenge of recognizing employees’ specific skill sets. The study identified that 43% of HR professionals and 34% of managers cited limited visibility into employee skills as a significant barrier to effective reskilling.

In light of these challenges, companies like Pearson are taking strategic steps to bridge the skills gap. Pearson’s recent acquisition of Workera, an AI-focused skills platform, demonstrates a commitment to enhancing employee capabilities in line with advancing technology.

Industry Disparities in Hiring Practices

The findings from Careerminds also reveal notable differences in how various industries are addressing their workforce needs in the face of AI. For instance, in the technology and telecommunications sectors, the preference for hiring externally exceeds internal redeployment by 15%. Conversely, within the media and entertainment industry, the statistics show a different trend; 56% of HR professionals in this sector favor internal redeployment compared to just 25% who choose to hire externally.

The Cost of External Hiring

Financial implications further complicate this picture. Research indicates that hiring new talent externally can be three to five times more expensive than filling comparable roles through internal promotions. Additionally, externally filled positions often take an average of 20 days longer to recruit for compared to those filled from within.

Rethinking Talent Development

The data suggests that, despite confidence in their employees, many organizations are failing to maximize their internal talent. As the need for skilled workers in AI continues to rise, businesses are at a crossroads, facing the decision of whether to focus on external recruitment or invest in developing the capabilities of their existing workforce.

By prioritizing skill development within their teams, companies can not only enhance efficiency but also cultivate a culture of ongoing learning and adaptability. This approach not only serves immediate hiring needs but also fosters employee loyalty by providing opportunities for growth and advancement.

In conclusion, as organizations push forward in the era of AI, a shift in hiring practices towards reskilling existing employees could ultimately prove to be a more sustainable and cost-effective strategy.