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Editorial

AI Upskilling in 2025: From Potential to Measurable Impact

4 minute read
Gretchen Alarcon avatar
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Learn how businesses are turning AI potential into measurable impact with ROI strategies, agentic AI and workforce innovation.

This year is proving to be pivotal for AI upskilling. We've officially moved well beyond the "what if" stage and are now firmly focused on the "how to" stage of AI implementation. After spending the past 18 months experimenting with generative AI, businesses are ready to transform all that potential into real, measurable outcomes. The landscape has shifted dramatically, and leaders are facing both exciting opportunities and complex challenges.

In my conversations with leaders across industries, three themes consistently emerge:

  1. First, there's an urgent need to demonstrate concrete returns on AI investments.
  2. Second, we're seeing exciting developments in agentic AI.
  3. And third – this one might surprise you – we're discovering how AI can bridge generational gaps in our workforce.

Let me break these down:

Getting Real About AI ROI

The boardroom conversations about AI have evolved dramatically over the past few years. Gone are the days when executives would be satisfied with flashy demos and theoretical use cases. Today, they're asking the tough questions:

  • How exactly does generative AI fit into our business model?
  • Where are we seeing measurable improvements?
  • What's the real impact on our bottom line?
  • And perhaps most importantly, how do we ensure our investments are driving tangible value?

Here's the challenge we're all grappling with: measuring AI's return on investment isn't straightforward. Sure, organizations can point to productivity improvements — say, a 20% boost in efficiency — but what does that really mean for your business? Should you be reshaping your teams? Updating performance metrics? Redefining roles? These are the practical questions that need answers.

The reality is that effective ROI measurement requires a comprehensive approach. Organizations need to consider quantitative metrics — like time saved and costs reduced — as well as qualitative improvements in areas like employee satisfaction and work quality. We're seeing successful companies develop sophisticated frameworks that track everything from AI-driven productivity gains to improvements in customer satisfaction scores.

I'm particularly encouraged by how the conversation has shifted away from "AI will replace jobs" to something much more nuanced. We're seeing AI emerge as a powerful tool for augmenting human capabilities, enabling our teams to focus on what they do best: creative problem-solving, innovation, strategic thinking and meaningful human interaction. This shift represents a fundamental change in how organizations approach AI implementation.

Related Article: Report Examines AI Readiness and ROI

The Power of Agentic AI

One of the most significant developments we’re seeing is the development of agentic AI. Unlike traditional enterprise systems that follow a one-size-fits-all approach, agentic AI adapts and learns based on your organization's specific needs. And it can work independently to solve tasks. Think of it as a sophisticated team member that gets better at its job over time.

The implementation process is different from what most organizations are used to. You can't simply install it and move on — it requires ongoing training, feedback and refinement. Yes, this means more upfront investment, but the returns make it worthwhile. Gartner predicted that by 2028, at least 15% of day-to-day work decisions will be made autonomously through agentic AI. Organizations that take the time to properly implement agentic AI are seeing remarkable improvements in workflow efficiency and employee satisfaction.

Take the performance review process, for example. Traditionally, managers spend countless hours coordinating feedback, chasing responses and compiling reports. With agentic AI, these administrative tasks can be handled by an AI agent, allowing managers to focus on what really matters: providing meaningful insights and coaching their teams toward success.

But it's not just about automating existing processes. Agentic AI opens up new possibilities for how work gets done. It can identify employee patterns by looking at data like work habits, performance metrics and system interactions, and suggest process improvements based on actual usage data to continuously adapt to changing business needs. This level of intelligence and adaptability is what sets it apart from traditional automation tools.

Bringing Generations Together Through AI

Here's an unexpected benefit we're seeing from AI implementation: it's creating more opportunities for cross-generational collaboration. In many organizations, younger team members bring an intuitive understanding of digital tools, while experienced professionals contribute deep industry knowledge and strategic insight. When these strengths combine, the results can be remarkable.

We're seeing particular success with reverse mentoring programs. By using AI to pair digitally-savvy employees with seasoned professionals, organizations are creating valuable two-way learning opportunities. But let me be clear — these programs need careful design to succeed. You can't just throw people together and hope for the best.

The most successful programs include clear objectives, structured engagement frameworks and regular check-ins to ensure both parties are benefiting. When done right, these initiatives create a win-win situation: younger employees gain exposure to strategic thinking and leadership perspectives, while experienced professionals stay current with technological advances.

What's particularly exciting is how these programs are breaking down traditional hierarchical barriers. We're seeing junior employees confidently sharing their technical expertise with senior leaders, while simultaneously learning crucial business insights. This kind of knowledge exchange is proving invaluable for organizations navigating the AI transformation journey.

Related Article: How Companies Can Prepare for an AI-Augmented Workforce

AI in Action: What Comes Next

As we move through 2025, one thing is becoming increasingly clear: the organizations thriving with AI are those that integrate it seamlessly into their workforce, fostering both technological and human potential. Leaders are finding success by aligning AI capabilities with their teams’ unique strengths and creating environments where innovation and collaboration flourish.

Think of AI transformation as an ongoing journey. It’s not just about deploying tools but about adapting, learning and fostering collaboration across generations. The most successful organizations are measuring what matters, embracing agentic AI and breaking down silos to create meaningful knowledge exchanges between employees at every level.

Learning Opportunities

The results speak for themselves: stronger performance, deeper engagement and a competitive edge that’s hard to replicate. As we look ahead, the question isn’t just how AI will shape work, but how leaders will shape their strategies to ensure technology and humanity thrive together. So, how will your organization rise to meet this challenge?

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About the Author
Gretchen Alarcon

Gretchen Alarcon is the SVP and GM of employee workflows products at ServiceNow, the Santa Clara, California-based digital workflow company. She has over 20 years of innovation experience at the intersection of people and technology. Alarcon has seen first-hand the evolution of HR across global businesses, as she spent 15 years leading the development of Oracle Cloud's HCM applications. She holds an M.B.A. from the University of Michigan and a B.A. in American studies from Stanford University. Connect with Gretchen Alarcon:

Main image: Alex Photo on Adobe Stock
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