From policy to practice: AI literacy and the future workforce

03/04/2025

The 11th episode of Digital Skills Talks, an online series hosted by the Digital Skills and Jobs Platform, delved into the crucial topic of Artificial Intelligence (AI) literacy and its impact on the workforce of the future. Experts from the European Commission and CEDEFOP joined the discussion, providing insights into how AI is reshaping the labor market and why AI literacy is essential for both workers and employers.

This conversation is particularly relevant for the TRAILS project, as we explore various perspectives on labor market skills mismatches. Understanding AI literacy and the evolving skill demands is key to addressing these challenges effectively.

Giulia Carsaniga, Policy Officer at the EU AI Office (CNECT A4, European Commission), introduced the work of the European AI Office, which serves as the EU’s central hub for AI expertise. The Office plays a critical role in implementing the AI Act—particularly regarding general-purpose AI—fostering trustworthy AI development, and facilitating international cooperation.

Regarding skills, education, and training, Carsaniga highlighted key initiatives aimed at ensuring a workforce equipped with the right AI skills. She mentioned the establishment of AI Factories as part of the EU AI Strategy and emphasized ongoing efforts to promote AI literacy. Notably, the European Commission has recently launched a call for proposals to set up Sectoral Digital Skills Academies, including a Digital Skills Academy in Generative AI.

Konstantinos Pouliakas, an expert in Skills and Work at CEDEFOP, shared key findings from CEDEFOP’s latest survey on AI’s labor market implications. One of the most striking revelations was that 60% of respondents lacked an understanding of AI literacy, particularly in terms of its ethical and social implications. This gap underscores the urgent need for initiatives that educate workers on how AI affects their roles and industries.

To support AI literacy efforts, Carsaniga also mentioned the establishment of a Living Repository, designed to facilitate knowledge sharing and continuous learning about AI. Moreover, Article 4 of the AI Act aims to encourage learning and exchange in this area, reinforcing the European Commission’s commitment to upskilling the workforce.

When asked about the role of Vocational Education and Training (VET) in adapting to AI-driven transformations, Pouliakas stressed that VET—both at the initial and continuous learning levels—plays a critical role. However, he noted that VET graduates often encounter challenges upon entering the workforce. While they are trained for high-skilled jobs in AI-related fields, they frequently find that their digital skills are underutilized in their workplaces. This discrepancy highlights the need for stronger alignment between VET curricula and real-world digital skill applications in the labor market.

At TRAILS, we are deeply engaged in examining labor market skills mismatches, and AI literacy is a significant factor in this equation. The discussions from the Digital Skills Talks session reinforce the importance of ensuring that workers—especially those in VET pathways—are adequately prepared for the AI-driven changes ahead.

The insights shared by the European Commission and CEDEFOP experts highlight both the opportunities and challenges in fostering AI literacy. Through collaborative efforts in skills development, digital education, and policy implementation, we can better equip the workforce for a rapidly evolving job market.