Melissa Cogger and Talita Laubscher, Partners and Chloë Loubser, Knowledge and Learning Lawyer, at Bowmans 

AI systems are increasingly being deployed in human resources (HR) across the employment lifecycle – from recruitment and performance management to retrenchment selection and disciplinary proceedings. But not only is AI reshaping HR practices; it is also reshaping the very work employees perform and the skills they need to do that work.

While these tools offer significant efficiency gains, they also give rise to the prospect that certain roles will be fundamentally altered, diminished, or rendered redundant. It is therefor important to upskill and reskill in the context of AI-driven workplace change.

AI literacy, upskilling and reskilling

AI literacy is a threshold requirement for responsible AI deployment. This means that employees should understand what AI is, how it works, what tasks it ought to be used for, as well as its limitations and risks. The aim is to reduce risk and improve the quality of the AI-generated output.

The real value of AI (for both individuals and employers) is unlocked, however, when employees are upskilled. AI upskilling involves training employees on how to build AI into existing role-specific workflows to create new ways of working and ensure that roles remain economically viable. In many cases, integration of AI into job functions can free up an employee to focus on higher-value activities and therefore create new opportunities to be upskilled.

For some employees, however, where AI is effectively able to handle an increasing share of their daily work, upskilling may not be enough. In such circumstances, reskilling becomes necessary, whereby employees are trained in a substantially different set of skills so they can move into a different role. According to McKinsey & Company large-scale reskilling can become a competitive advantage ‘even reducing recruitment time and cost with AI-powered reskilling pathways and by directly connecting candidates to job opportunities’.

Beyond AI and technological literacy, social, emotional, and cognitive skills are expected to become essential among employers including analytical thinking, resilience, mature management of conflict, flexibility and agility, along with leadership and social influence.

The World Economic Forum’s Future of Jobs Report for 2025 reported that 63% of employers identified skills gaps as being a major barrier to business transformation. The report estimates that if the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles; 19 could be reskilled and redeployed elsewhere within their organisation; but 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk.

Reskilling and redeployment as an alternative to retrenchment

As employers start to re-evaluate their current workforces in light of AI adoption, reports of job losses due to AI are already making headlines. In the South African context, the Labour Relations Act, 1995 (LRA), recognises dismissals based on an employer’s operational requirements, being requirements based on the economic, technological, structural or similar needs of an employer, as a fair reason for dismissal. However, it is important that employers follow a fair process and consult with employees on any technological changes that may impact their roles.

Section 189 of the LRA requires employers contemplating retrenchments to consult with employees or their representatives on, among other things, measures to avoid or minimise dismissals.  This includes discussing any alternatives that the employer considered before proposing the dismissals and the reason for rejecting those alternatives.

In the context of AI-driven change, where AI systems are being deployed to automate or augment certain functions, employers should assess whether affected employees can be reskilled or retrained to perform new or modified roles within the organisation. Such reskilling, retraining and redeployment measures are likely to be important potential alternatives to dismissal that an employer can propose during retrenchment consultations. An employer who proceeds to retrench employees without having genuinely considered and engaged on these alternatives may be at risk of unfair dismissal claims.

Employers should not wait until a section 189 process is imminent before engaging employees on AI-driven change. Early, transparent and ongoing engagement with employees and trade unions about the organisation’s AI strategy, its potential impact on jobs, and the reskilling opportunities available will not only strengthen the employer’s legal position but also build trust and facilitate a smoother transition.

Practical guidance for employers

Employers should consider the following steps to address any apparent skills gaps and build a future-ready workforce:

• Conduct a skills gap analysis: Identify which roles within the organisation are most likely to be affected by AI deployment, and assess the skills that will be needed in the AI-augmented workplace. This analysis should be data-driven and should consider both the technical skills required to work alongside AI systems and the human skills (such as analytical thinking, creativity, emotional intelligence, ethical judgement) that will remain essential. The analysis should be reviewed and updated regularly as AI capabilities evolve;

• Design an upskilling/ reskilling programme: Develop a structured programme that addresses the identified skills gaps. This may involve a combination of internal training, partnerships with external service providers, online learning platforms, mentorship programmes, and on-the-job training. The programme should be tailored to the needs of the organisation and its employees, and should set clear learning objectives, timelines and assessment criteria;

• Engage with employees and trade unions early and meaningfully: Do not wait until a section 189 process is triggered. Engage employees and recognised trade unions proactively about the organisation’s AI strategy, the potential impact on jobs, and the reskilling opportunities available. Transparent communication builds trust, allows employees to plan for the transition and empowers employees to make informed decisions about their own future;

• Enable internal mobility: Establish clear pathways for employees to be considered for redeployment into alternative roles within the organisation. This not only supports compliance with the obligation to explore alternatives to dismissal under section 189 of the LRA, but also helps retain institutional knowledge and demonstrates a genuine commitment to workforce development;

• Integrate skills development into the organisation’s broader AI governance framework: Responsible AI deployment requires a comprehensive governance framework. Upskilling and reskilling should be a core component of this framework, alongside other features like AI literacy, human oversight, and board-level accountability.

Conclusion

The question for employers is not whether AI will affect their workforce, but how they will manage that impact. Skills development should be one of the top priorities.  As the World Economic Forum notes in the foreword to its AI at Work community paper of January 2026, ‘the firms that will lead in the AI era are those that build systems for continuous reskilling, internal mobility and human–AI collaboration’.

Ed’s note: This is Part 6 of a six-part series examining the responsible use of artificial intelligence (AI) in human resources from a South African legal perspective. You can find the previous five articles here:

AI in the workplace: The current regulatory landscape

AI in the workplace: POPIA considerations

AI in the workplace – Employment Equity Act considerations

AI in the workplace – Labour Relations Act considerations

ENDS