Europe’s AI competitiveness hinges on skills

The rapid rise of AI presents an opportunity to strengthen Europe’s competitiveness, productivity and innovation. To achieve these benefits and realize European Commission President Ursula von der Leyen’s vision of a competitive and inclusive economy where everyone can thrive, the EU will need to ensure its workers have the critical AI skills that will power organizations.  

Challenges do exist. Mario Draghi’s report, The future of European competitiveness, highlights that 42 percent of Europeans lack even basic digital skills. But if EU leaders act now to embrace a skills-first labor market and invest in the AI skills of its workforce, the EU can unlock its workforce’s full potential. 

Critical AI Skills Are Growing But Still Nascent 

The EU must foster at least two critical sets of AI skills to power its competitiveness — technical and literacy skills. AI technical skills (such as machine learning and model training) are necessary to develop AI productivity tools and services while AI literacy skills (such as Copilot for Microsoft 365, GitHub Copilot and ChatGPT) are required for workers to utilize these AI productivity tools effectively.  

AI technical skills in the EU workforce are nascent but growing. LinkedIn’s new AI in the EU report shows 71 percent growth in these skills among LinkedIn’s EU members in the last year alone.  Even so, only a tiny percentage of these workers,  just 0.41 percent, have acquired the critical technical skills necessary to develop AI productivity tools and services.  

Moreover, there is currently a significant gender gap among the EU workers that have acquired these crucial AI technical skills. Across the EU, this figure stands at just 26.3 percent for women despite the fact that women make up 46.4 percent of workers. At the current pace, it would take the region 162 years to achieve gender parity. 

EU workers are more rapidly adopting AI literacy skills. As new AI tools and technologies emerged throughout 2023, EU workers seized the opportunity to experiment heavily and integrate them into their daily workflows. LinkedIn data shows that the share of members adding AI literacy skills was 80 times greater in 2023 than 2022. 

The EU is Leading on Responsible and Green AI Skill Development

In a world where nations are racing to develop the AI skills of their workforces, LinkedIn’s data shows that the EU is out in front in two key areas.  

First, AI professionals in the EU lead in green skills — performing jobs in a more environmentally sustainable way — compared with their peers in the US and UK. Today, 8.1 percent of AI talent in the EU have at least one green skill, compared with 5.8 percent in the US and 7.4 percent in the UK. Given that many green solutions are based on technological innovations such as AI, these twin skill sets can help power a productive green future for Europe. 

The EU is also leading on responsible AI, the approach to developing, assessing and deploying AI systems in a safe, trustworthy and ethical way. Among EU AI talent, responsible AI ranked eighth on the list of AI talent’s fastest-growing skills — ahead of global AI talent, where it ranked 14th. 

Developing Skills Can Unlock Europe’s Potential

The United States and China are advancing rapidly, driven by investments in AI and expanding digital talent. In comparison, the EU’s ability to compete may be held back by a skills shortage and slower adoption of new technologies. 

To foster Europe’s competitiveness, EU leaders must act now to embrace a skills-first labor market and invest in the AI skills of its workforce. By increasing access to AI technical and literacy skills training, the EU can unlock its workforce’s full potential. Fostering sector-specific AI upskilling initiatives will help workers and businesses — especially SMEs — adapt to the rapid pace of change. 

Additionally, making the most of available data and granular skills intelligence is key to this effort. To this end, partnering with platforms, including LinkedIn, which track the evolving impact of AI on jobs, skills and industries, can help workers, businesses and governments to navigate change more effectively. By leveraging these insights, the EU can drive targeted AI upskilling and ensure that digital skills development aligns with real-world needs, unlocking Europe’s potential in the age of AI. 

The EU can seize this opportunity by putting people and skills at the heart of European growth plans. When focusing on skills, we can create a resilient, modern workforce that will power innovation, drive investment and help position the EU as a leader in the AI economy.