
58% of L&D leaders name skill gaps & AI adoption their biggest challenge: ETHRWorld 2025 Study
In a world where disruption is the new normal, learning & development (L&D) leaders are grappling with widening skill gaps and slow AI adoption, according to the newly released ETHRWorld Global Learning & Skilling Report 2025.
The comprehensive study, based on insights from over 150 HR and L&D professionals across India, the Middle East, and Southeast Asia, offers a panoramic view of the evolving talent landscape.
Published by ETHRWorld, a premier platform from The Economic Times for workplace intelligence, the second edition of the report identifies leadership development, digital fluency, and AI integration as the top strategic priorities for organizations preparing for the future of work.
'This second edition of the report serves as a timely pulse check for L&D leaders navigating rapid change. The insights go beyond trends—they spotlight the real challenges and opportunities shaping the future of talent. It's a critical resource for organizations rethinking their learning strategies in 2025,' said Yasmin Taj, Editor-Features, ETHRWorld.
Key highlights from the report include:
●58% of L&D leaders rank addressing skill gaps and future workforce readiness as their top concern in 2025.
●52% struggle to keep pace with technological change and digital transformation.
●Despite high optimism, 48% of organizations are yet to implement AI in any L&D capacity, citing internal capability gaps and unclear ROI.
●Leadership development is the highest-ranked L&D priority, followed by digital transformation skills and reskilling/upskilling initiatives.
The report reveals that leadership development is emerging as a cornerstone of organizational resilience, with future-ready leaders seen as critical to navigating uncertainty and complexity.
At the same time, widening skill gaps have become a silent emergency, as the pace of external disruption increasingly outstrips internal talent development efforts. While there is strong belief in the potential of technology—76% of L&D leaders agree that AI will enhance human-led learning—actual implementation remains sluggish due to capability gaps and ambiguous returns on investment.
Moreover, a disconnect between strategic ambition and financial commitment persists, with 69% of organizations allocating less than 10% of their budgets to L&D. Perhaps most tellingly, the most valued capabilities in 2025 are those that demonstrate agility: adaptability, digital dexterity, and emotional intelligence have become the most sought-after traits in a workforce ready for transformation.
The report features exclusive perspectives from industry leaders such as Krish Shankar (former CHRO, Infosys), Fermin Diez, and talent heads from Titan, DCM Shriram, Vedanta, Hilton, AIA, Jindal Stainless, and more.
To access the full report or request expert interviews, visit
https://lnk.ink/CPgAR
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
16 minutes ago
- Time of India
Solar players make a fast buck by blocking plug points to the grid
AI generated image NEW DELHI: A grey market for grid interconnect facilities has emerged in the solar sector as installation of projects outpace expansion of grid interconnect and transmission infrastructure. Smaller players are exploiting this mismatch by booking interconnect capacity for reselling at a hefty premium of Rs 40 lakh per MW (megawatt). Industry executives said these players book the grid interconnect, or ISTS (interstate transmission system) capacity, the moment bookings open. But they have little or no intention of setting up solar projects. Some of them hold on to the capacity by installing only a small part of the promised project. For example, 80% of the 40 GW interconnect capacity expected to be commissioned next year has already been booked. The executives suspect that a majority of the 8.8 GW (gigawatts) capacity in the Fatehgarh and Bikaner interconnect corridors in Rajasthan, the largest hubs in India, have been booked by such players. The situation has led to the underutilisation of the existing green corridors, while serious developers get stranded with their projects since they are unable to tie up consumers in the absence of a grid interconnect or wheeling capacity. 'Securing interconnect capacity from the grey market can affect project viability because of the substantial additional costs,' means taking a huge financial hit, which can affect the viability of projects,' one executive said. Interconnect capacity bought from the grey market for a 1,000 MW project can entail an additional expenditure of Rs 400 crore or so, he said. Interconnect capacity is currently allotted under three modes: LoA (letter of award of a project), land availability, and/or BGs (bank guarantees). Allottees are allowed to convert to another at a later stage. It is mostly the land- and bank guarantee-based allotments that being misused by developers. Nine developers were some time back served notices for revocation, which is likely to be appealed at the regulatory level. Some have invoked 'force-majeure' clause to delay the revocation. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)

Business Standard
32 minutes ago
- Business Standard
Thinking capped: How generative AI may be quietly dulling our brains
It has been barely three years since generative artificial intelligence (AI) chatbots such as ChatGPT appeared on the scene, and there is already concern over how they might be affecting the human brain. The early prognosis isn't good. The findings of a recent study by researchers from the Massachusetts Institute of Technology (MIT) Media Lab, Wellesley College, and MassArt indicate that tools such as ChatGPT negatively impact the neural, linguistic, and cognitive capabilities of humans. While this study is preliminary and limited in scope, involving barely 54 subjects aged 18 to 34, it found that those who used ChatGPT for writing essays (as part of the research experiment) showed measurably lower brain activity than their peers who didn't. 'Writing without (AI) assistance increased brain network interactions across multiple frequency bands, engaging higher cognitive load, stronger executive control, and deeper creative processing,' it found. Various experts in India, too, reiterate the concerns of overdependence on AI, to the extent where people outsource even thinking to AI. Those dealing with the human brain define this as 'cognitive offloading' which, they caution, can diminish critical thinking and reasoning capability while also building a sense of social isolation – in effect, dragging humans into an 'idiot trap'. Training the brain to be lazy 'We now rely on AI for tasks we used to do ourselves — writing essays, solving problems, even generating ideas,' says Nitin Anand additional professor of clinical psychology, National Institute of Mental Health and Neuro Sciences (Nimhans), Bengaluru. 'That means less practice in critical thinking, memory recall, and creative reasoning.' This dependence, he adds, is also weakening people's ability to delay gratification. 'AI tools are designed for speed. They answer instantly. But that trains people to expect quick solutions everywhere, reducing patience and long-term focus.' Anand warns that this behavioural shift is feeding into a pattern of digital addiction, which he classifies as the 4Cs: craving, compulsion, loss of control, and consequences (see box). 'When someone cannot stop checking their phone, feels restless without it, and suffers in real life because of it — that's addiction,' he says, adding that the threat of addiction towards technology has increased multifold by something as adaptive and customisable as AI. Children and adolescents are particularly at risk, says Pankaj Kumar Verma, consultant psychiatrist and director of Rejuvenate Mind Neuropsychiatry Clinic, New Delhi. 'Their prefrontal cortex — the brain's centre for planning, attention, and impulse control — is still developing,' he explains. 'Constant exposure to fast-changing AI content overstimulates neural circuits, leading to short attention spans, poor impulse control, and difficulty with sustained focus.' The effects don't stop at attention 'We're seeing a decline in memory retention and critical thinking, simply because people don't engage deeply with information anymore,' Verma adds. Even basic tasks like asking for directions or speaking to others are being replaced by AI, increasing social isolation, he says. Much of this harks back to the time when landlines came to be replaced by smartphones. Landline users rarely needed a phonebook — numbers of friends, family, and favourite shops were memorised by heart. But with mobile phones offering a convenient 'contacts' list, memory was outsourced. Today, most people can barely remember three-odd numbers unaided. With AI, such cognitive shifts will likely become more pronounced, the experts say. What looks like convenience today might well be shaping a future where essential human skills quietly fade away. Using AI without losing ourselves Experts agree that the solution is not to reject AI, but to regulate its use with conscious boundaries and real-world grounding. Verma advocates for structured rules around technology use, especially in homes with children and adolescents. 'Children, with underdeveloped self-regulation, need guidance,' he says. 'We must set clear boundaries and model balanced behaviour. Without regulation, we risk overstimulating developing brains.' To prevent digital dependence, Anand recommends simple, yet effective, routines that can be extended to AI use. The 'phone basket ritual', for instance, involves setting aside all devices in a common space at a fixed hour each day — usually in the evening — to create a screen-free window for family time or rest. He also suggests 'digital fasting': unplugging from all screens for six to eight hours once a week to reset attention and reduce compulsive use. 'These habits help reclaim control from devices and re-train the brain to function independently,' he says. Perhaps, digital fasting can be extended to 'AI fasting' during work and school assignments to allow the brain to engage in cognitive activities. Pratishtha Arora, chief executive officer of Social and Media Matters, a digital rights organisation, highlights the essential role of parental responsibility in shaping children's digital lives. 'Technology is inevitable, but how we introduce it matters,' she says. 'The foundation of a child's brain is laid early. If we outsource that to screens, the damage can be long-term.' She also emphasises the need to recognise children's innate skills and interests rather than plunging them into technology at an early age. Shivani Mishra, AI researcher at the Indian Institute of Technology Kanpur, cautions against viewing AI as a replacement for human intelligence. 'AI can assist, but it cannot replace human creativity or emotional depth,' she says. Like most experts, she too advises that AI should be used to reduce repetitive workload, 'and free up space for thinking, not to avoid thinking altogether'. The human cost According to Mishra, the danger lies not in what AI can do, but in how much we delegate to it, often without reflection. Both Anand and Verma share concerns about how its unregulated use could stunt core human faculties. Anand reiterates that unchecked dependence could erode the brain's capacity to delay gratification, solve problems, and tolerate discomfort. 'We're at risk of creating a generation of young people who are highly stimulated but poorly equipped to deal with the complexities of real life,' Verma says. The way forward, the experts agree, lies in responsible development, creating AI systems grounded in ethics, transparency, and human values. Research in AI ethics must be prioritised not just for safety, but also to preserve what makes us human in the first place, they advise. The question is not whether AI will shape the future; it is already doing so. It is whether humans will remain conscious architects of that future or passive participants in it. Writing without AI assistance leads to higher cognitive load engagement, stronger executive control, and deeper creative processing Writing with AI assistance reduces overall neural connectivity and shifts the dynamics of information flow Large language model (LLM) users noted a diminishing inclination to evaluate the output critically Participants who were in the brain-only group reported higher satisfaction and demonstrated higher brain connectivity, compared to other groups Essays written with the help of LLM carried less significance or value to the participants as they spent less time on writing and mostly failed to provide a quote from their essays


Time of India
an hour ago
- Time of India
US tariff: After China 'deal', Trump eyes trade pact with India, says ‘looking to drop full barrier'
US President Donald Trump (AP) US President Donald Trump on Friday signaled a possible breakthrough in trade negotiations with India, as Washington prepares to notify countries of new reciprocal tariffs. Speaking at a press conference, Trump said the US is seeking to dismantle trade restrictions that currently make it difficult for American businesses to operate in India, reported Reuters. 'India, I think we are going to reach a deal where we have the right to go and do trade,' Trump said. 'Right now, it's restricted. You can walk in there, you can't even think about it. We are looking to get a full trade barrier dropping, which is unthinkable and I am not sure that that is going to happen. But as of this moment, we agree that going to India and trade...' Trump's comments come as the US plans to send letters to multiple countries within the next 10 days, detailing what they will be required to pay to access American markets under a reciprocal tariff framework. 'We have made a deal with China... We have 200 countries plus,' Trump said. 'At a certain point over the next week and a half or so, or maybe before, we are going to send out a letter and talk to many other countries. We are going to tell them what they have to pay to do business with the US.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now