I'm Emil Reisser-Weston, and I've been pondering a crucial question that emerged from a recent week packed with EdTech, L&D, and AI news. What if the industry's biggest players are buying the wrong things, focusing on inference when direct input is vital? And what does it mean for your L&D strategy when the skills you're teaching today are already depreciating?
The answer, as revealed in our latest Open eLMS discussion with Andy Howie, is that the landscape is shifting rapidly, demanding a new focus on genuine skill identification and adaptable learning. But before we dive into the details, you need to understand the seismic shifts currently underway. For more insights into these rapid changes and how AI is transforming workplace learning, make sure to follow Open eLMS and subscribe to our channels for regular updates and thought-provoking discussions.
Key Takeaways from the Discussion:
- Strategic Acquisitions: Pearson and SAP's recent acquisitions signal a strategic pivot towards AI-driven skills assessment and inference, moving away from traditional content libraries.
- AI in Education Trial: An independent trial on AI lesson planning, while showing time savings for teachers, raised questions about the effectiveness of purpose-built AI tools versus general chatbots and the lack of evidence for improved learning outcomes.
- Depreciating AI Skills: Workday's report indicates a rapid depreciation of basic AI prompting skills, with a growing demand for AI engineering and deployment expertise.
- AI and Job Impact: A major credit scoring company's workforce reduction, while listing AI integration as a factor, sparked debate on whether AI is genuinely eliminating jobs or serving as a rationalisation for cost-cutting.
- Youth Inactivity Challenges: A national initiative to address youth inactivity in the UK has seen limited uptake from local councils, highlighting challenges in implementing voluntary large-scale training and employment programmes.
The New Frontier: Skills Assessment Over Content Libraries
The EdTech landscape is witnessing a profound reorientation, as evidenced by two significant acquisitions within a fortnight. Andy Howie reported that Pearson agreed to acquire Workera, an AI-native skills assessment company, while SAP moved to acquire Techwolf, an AI-native skills inference engine. Notably, neither of these industry giants invested in content libraries or ready-made courses; their focus was squarely on understanding "what people can actually do."
Techwolf, founded in 2018, builds a "context graph for work," mapping tasks, individual skills, and the external labour market. It is set to become an "intelligent core" for SAP's SuccessFactors and the grounding layer for its AI assistant, Joule. However, Emil Reisser-Weston questioned the efficacy of inferring skills solely from data like Jira tickets and CRM activity without direct user input. He argued that while AI can perform complex data aggregation and inference, truly understanding the nuance of an individual's job requires direct engagement through surveys and forms, similar to Open eLMS’s approach to skills gap analysis. Inferring skills solely from documentation risks fulfilling existing preconceptions rather than capturing genuine capabilities. The concern was also raised that such inference tools might appeal to organisations looking to downsize their workforce, rather than genuinely upskill them.
AI in the Classroom: Time Saver, But What About Learning Outcomes?
For two years, the EdTech industry has been abuzz with claims about AI's transformative power, yet independent evidence has been scarce. This changed with the Education Endowment Foundation's (EEF) publication of a randomised control trial on AI lesson planning in English primary schools. The trial, involving 464 teachers across 108 schools, found that those using Aler, Oak National Academy's AI lesson system, saved 48.6 minutes a week (24%) on lesson preparation compared to a control group. Crucially, an independent assessment found no drop in the quality of materials produced, a finding the EEF rated as "high security."
However, the discussion highlighted several nuances. Usage of Aler tailed off after about 10 weeks, and it benefited newer teachers and those less confident in their subject knowledge far more than experienced practitioners. More strikingly, a separate EEF trial found that general chatbots like ChatGPT cut preparation time by 31%, raising an awkward question: why did a purpose-built, curriculum-grounded tool deliver smaller time savings than a general-purpose chatbot? Teachers in the Aler trial even reported preferring general tools because Aler deliberately required them to do more of the work.
Andy Howie emphasised that while the trial proved time savings, it did not measure whether teaching improved or if students learned anything more effectively. Emil Reisser-Weston concurred, noting that L&D often measures what is easiest, such as course completions, which he called "complete nonsense." He argued that true return on investment (ROI) should consider learner satisfaction, productivity, and the accessibility of materials. The choice, he concluded, depends on what is most important to the business: cost savings or quality outcomes. He stressed that benefiting from AI implementation requires robust systems and good business analysis, not just casual experimentation. Open eLMS, with its comprehensive learning tracking and custom reporting capabilities, empowers L&D leaders to go beyond simple completions and measure the true impact on performance and business goals.
The Shifting Value of AI Skills: From Prompting to Building
A Workday global workforce report revealed a significant shift in demand for AI skills. Demand for basic AI prompting skills peaked in January and has since fallen by 25%. In stark contrast, demand for hands-on skills in building AI tools, automating workflows, and AI engineering rose by 51% over the same period. This indicates a clear pivot from merely using AI to building with it. This trend is further underscored by Anthropic's Claude Frontier Academy, which is training deployment engineers for major consultancies, not prompt engineers.
Emil Reisser-Weston acknowledged that prompting is a skill, akin to knowing one's job and how to articulate needs to an intelligent assistant. However, he noted that the market is now moving towards "vibe coding" and producing systems that make businesses run better. He expressed concern that consultancies like McKinsey might be brought in to reduce headcount under the guise of AI-driven efficiency. He urged businesses to proactively invest in developing internal "vibe coding" capabilities within their workforce, particularly in IT and design, to implement AI for profitability and growth, rather than waiting for external consultants to propose workforce reductions. This is where tools like the Open eLMS Learning Generator become invaluable, enabling L&D teams to rapidly create custom, AI-powered eLearning courses, videos, and gamification, fostering these crucial internal AI building skills.
Andy Howie observed that while employees may not be changing jobs, their jobs are changing around them. Emil Reisser-Weston advised L&D professionals to adapt by redefining their roles and "supercharging" themselves with AI tools. He suggested moving beyond simply converting PowerPoints into compliance courses and instead focusing on identifying skills gaps, proposing learning that enhances the bottom line, and becoming a "key business enabler." This, he argued, presents an exciting opportunity for L&D leaders to become among the most important people in their companies, leveraging platforms like the Open eLMS LMS for comprehensive skills monitoring and development.
AI and Job Displacement: A Nuanced Reality
The discussion also touched on the sensitive issue of AI's impact on employment, prompted by FICO, the credit scoring company, announcing a 15% workforce reduction. While "integrating AI-driven product development" was listed as one of four reasons for the cuts, the panellists questioned whether AI was the direct cause or a convenient rationalisation for traditional cost-cutting, especially given FICO's commercial pressures. Emil Reisser-Weston highlighted that such reductions often coincide with share buybacks, which typically benefit board members. He stressed the gravity of job losses and the need for a robust rationale behind such decisions.
Tackling Youth Inactivity: A Call to Action for Local Councils
Finally, the conversation turned to a critical societal challenge: youth inactivity in the UK. Alan Milburn's review on young people not in education, employment, or training (NEETs) highlighted that almost a million 16-24 year olds were NEET between April and June, costing the economy £125 billion annually. His initiative asked councils to set up local task forces, yet only 23% of councils have signed up.
Emil Reisser-Weston attributed this low uptake to the voluntary nature of the initiative and the immense pressures faced by local councils, many of whom are undergoing restructuring. He noted that while councils are well-meaning, voluntary initiatives often struggle to gain traction amidst competing priorities and limited capacity. This underscores the need for robust, scalable learning management systems like Open eLMS that can support large-scale training initiatives with comprehensive personnel management and learning tracking, even for organisations with limited resources.
So, to return to that initial question: what if the industry's biggest players are buying the wrong things? It's not about being "wrong" as such, but rather a clear signal that the focus in L&D is shifting dramatically. We are moving beyond simple content delivery to a world where understanding, assessing, and developing actual skills is paramount. The evidence from the EEF trial, the Workday report, and the broader market signals all point to a future where AI is not just a tool for efficiency, but a catalyst for redefining roles, strategies, and the very structure of learning within organisations.
At Open eLMS, we've been anticipating and driving these changes since 2003. We understand that the future of workplace learning isn't just about saving time; it's about transforming capabilities, driving genuine ROI, and empowering individuals and organisations to thrive in a rapidly evolving world. Our AI-powered solutions are designed to help you navigate this complexity, turning challenges into opportunities.
Ready to future-proof your L&D strategy? Discover how the Open eLMS LMS can centralise your learning, personnel management, and skills tracking, or explore the Open eLMS Learning Generator to create custom, AI-powered eLearning courses, videos, and gamification in minutes. Visit Open eLMS today and become a key business enabler in the era of AI-powered corporate training.