Artificial Intelligence and Learning Analytics for Global Talent Development: Bridging the L&D Value Gap

"The world’s most valuable resource is no longer oil, but data" (The Economist, 2017). In today's digital age, this statement resonates more profoundly than ever, particularly within Learning and Development (L&D). As organizations navigate the swift currents of technological change, L&D units face a dual imperative: to upscale the workforce to be AI-literate, enhancing job functions across various industries, and to effectively leverage AI within their own operations to improve business outcomes.

Learning is pivotal—it builds organizational capability, drives operational excellence, strengthens customer relationships, and ensures innovative and sustainable performance. The impact of learning extends beyond organizations; it influences our communities and nations. Stakeholders and leaders are more inclined to invest in learning when its value can be clearly measured and optimized. In this context, modern economies are increasingly characterized as learning economies where knowledge is a crucial resource and learning is the most important process. This shift highlights learning as the key to a society’s economic development, as opposed to more quantifiable—but perhaps less indicative—measurements, like Gross Domestic Product (GDP).

While Artificial Intelligence (AI), Big Data, and Business Analytics drive remarkable advancements, Human Resource Management (HRM)—and by extension, L&D—often lags in benefiting from these technologies. Traditional L&D struggles with quantifying the efficacy of training programs. Unlike Finance or Operations, which readily generate precise performance reports, L&D has historically relied on indirect measures like course completion rates and post-training evaluations.

Despite these challenges, L&D is evolving. Technologies such as learning management systems and e-learning platforms have introduced valuable data into the ecosystem. However, this data is just a fraction of what is needed. Today’s business leaders demand direct correlations between training effectiveness and key business metrics like sales, revenue, and customer satisfaction.

The current AI wave presents a unique challenge and opportunity in this vein: L&D must not only upskill their workforce to use AI effectively but also harness AI and learning analytics to enhance their own operational effectiveness. This requires a shift from traditional volume-based metrics to AI-driven, value-centered approaches that align learning initiatives with strategic business goals. This is crucial if we consider that, as presented by the World Economic Forum, nearly 84% of employers are set to rapidly digitalize working processes, including significant expansions in remote work, necessitating a parallel growth in AI-driven learning platforms to support remote training and talent development. Research from the Association for Talent Development (ATD) also highlights that personalized learning paths, powered by AI, can enhance learning outcomes by up to 25%. So, this is an imperative in the present and future of all L&D units.

Over the last six months, I’ve had the opportunity to meet with partners and initiate projects across Arizona State University, and Thunderbird School of Global Management as part of it, in the United States, Latin America, Asia, Europe, Africa, and the MENA region, affirming that this shift towards AI-enhanced learning is indeed a global trend. Throughout these conversations, it has become clear that L&D leaders can bridge the value gap by investing in AI-powered tools to decipher vast training data, collaborating with IT to integrate AI into L&D systems, and promoting a culture that prioritizes data-driven decision-making.

Moreover, AI needs to be increasingly employed in L&D to transform how educational content is delivered and personalized. AI-powered chatbots, for instance, are starting to serve as on-demand knowledge repositories that respond to learner inquiries. They are also starting to play a pivotal role in monitoring learning progress and tailoring online educational experiences to individual needs or designing collective instructional sessions. All of these novel applications fall under the broader applications of AI in HRM, which also include recruiting activities. AI enhances efficiency, productivity, and fairness in candidate evaluation, and facilitates unbiased decision-making by mitigating human biases and prejudices, thereby improving relationships with both potential and current employees.

In recruitment, especially within large organizations that face challenges in matching the right candidates with available roles, AI is proving invaluable. Industries across the spectrum report unfilled positions due to recruitment challenges, while many qualified individuals remain unemployed. AI-driven platforms, including prominent services like LinkedIn, utilize algorithms to refine and improve job matches for both recruiters and job seekers. While this technology offers substantial benefits by removing unconscious biases, it is crucial to remain vigilant about potential biases these algorithms might introduce.

In this transformative era, the integration of AI and learning analytics within talent development is crucial. By adopting these technologies, L&D units not only boost their operational efficiency but also play a critical role in driving organizational success. The future of L&D is about delivering strategic, impactful learning experiences aligned with the broader goals of digital transformation, powered by AI and learning analytics.

Join Professor Marco Serrato from October 24 to 25 in Mexico City for the Thunderbird Executive Education's two-day workshop, Business Analytics and Big Data in a Global Economy. This program, conducted in Spanish, will help leaders navigate the complexities of the global marketplace using advanced data analytics and big data strategies. Don’t miss the opportunity to learn directly from a global expert in the field and enhance your skills to drive innovation and success in your organization.
 

About Professor Marco Serrato.

Marco Serrato serves as associate vice president of Arizona State University's Learning Enterprise, and as a professor of global strategy and business analytics at Thunderbird School of Global Management. He has experience developing initiatives with private, governmental, and nongovernmental organizations in the United States, Latin America, Europe, Asia, Africa and the MENA region, including serving as former chair and emeritus board member of the International Consortium for University-based Executive Education (UNICON). Marco Serrato has published more than thirty research papers on international peer-reviewed and conference journals, four books, and three book chapters. His contributions have been featured by international media including the World Economic Forum and the United Nations, among others.