Building agile, skills-powered organizations in the Intelligent Age 

The challenges of rapid technological advances, economic shifts, and an evolving workforce are combining to demand new levels of agility and responsiveness from any organization aiming to thrive, not just survive. Part of that is collaboration—among workers and industries, and between workers and technology.

This year’s theme for the World Economic Forum’s Annual Meeting in Davos, Collaboration for the Intelligent Age, underscores the need for global cooperation in guiding the AI revolution toward positive outcomes. It’s a call to address how AI will shape economies and workplaces while ensuring its benefits reach all.

In the Intelligent Age, AI and skills-powered work models are pivotal for building agile, human-centered organizations capable of adapting to uncertainty.

When uncertainty is the only real certainty, the ability to pivot quickly, collaborate in an agile way, and respond to new challenges has become a foundational strength for organizations.

A recent study by the Oliver Wyman Forum and the New York Stock Exchange found that 59% of CEOs rank breaking down business silos as their top workforce priority—a reflection of the urgent need for flexible, unified models that support collaboration and enable companies to respond swiftly to seize new opportunities. With AI at the forefront, businesses have unprecedented tools to build this kind of cooperative resilience, which is a powerful enabler of efficiency and innovation.

AI’s role as a strategic enabler, in collaboration with human workers, is widely recognized and has broad support among leaders. In fact, a staggering 98% of large-company CEOs recognize AI as a critical opportunity, and over 90% are already investing in AI to enhance customer insights and manage operational risks.

However, AI isn’t a one-size-fits-all solution; it must be thoughtfully integrated to complement human capabilities and create lasting value.

As outlined in Mercer’s Future of Work Thinkers Board publication, The AI-Augmented Operating System: Is Your Business Prepared?, companies are using AI to address primary business challenges. Walmart, for example, employs Generative AI for contract negotiations, while IKEA has transformed call center staff into AI-augmented design advisors. Both cases illustrate how AI can drive innovation and support human-centered growth.

In the Intelligent Age, skills drive organizational agility. With AI accelerating the need for adaptability, developing and deploying skills is essential for confidently navigating change. Skills are more than just byproducts of transformation; they’re the mechanism that powers it.

We should think of skills as the “muscles” that empower organizational agility—the more developed these muscles, the more responsive the organization. Recognizing skills as the currency of work is a fundamental shift, essential for creating a flexible, scalable approach to talent deployment. As work is redefined, skills empower companies to adapt, mobilizing talent across tasks, projects, and functions for resilience and growth. I explore this in greater detail in my recent book, The Skills-Powered Organization: The Journey to the Next-Generation Enterprise (MIT Press, 2024), co-authored with Tanuj Kapilashrami, Chief Strategy and Talent Officer at Standard Chartered.

This emphasis on skills not only anticipates change but also addresses employee concerns about AI’s impact. Upskilling and reskilling are crucial for preparing employees for roles that blend human expertise with AI-driven tools. Leaders are stepping up: 31% of CEOs are actively closing skills gaps through reskilling, and another 31% are upskilling managers to navigate new work models. These efforts build both agility and inclusivity, fostering a human-centered, growth-oriented workplace.

As we advance in the Intelligent Age, cross-sector collaboration will be essential to cultivating the skills and flexibility needed to navigate change. Establishing standards and best practices for AI and workforce development requires a united approach and a shared commitment to sustainable progress.

To support this collaboration, meaningful dialogue around emerging challenges and opportunities is key. Here are some critical questions that can guide these discussions:

• What strategies can organizations implement to transform into resilient, human-centric entities?
• How can businesses leverage changing demographics and customer preferences to fuel expansion?
• What role does M&A play in reshaping the business landscape, and what disruptive business models should leaders consider?
• How can organizations revamp their supply chains to minimize risk and ensure operational continuity?
• In what ways can the accelerated adoption of AI tools enhance efficiency and productivity, and how critical is upskilling and reskilling the workforce in this process?
• How can companies balance technology with human-centered growth to ensure that AI-driven transformation benefits both organizations and the workforce?

As we navigate the complexities of the Intelligent Age, the interplay between AI, skills and collaboration will define the future of work. Organizations that prioritize agility and human-centered approaches will not only thrive in this evolving landscape but also contribute to a more inclusive and sustainable economy. The journey ahead is one of opportunity, and it is through our shared commitment to innovation and cooperation that we will unlock the full potential of the Intelligent Age.