One critical business challenge affecting many organizations is that necessary competencies to stay competitive are outpacing their human resources. A survey found that 22 percent of US employers are facing a skills gap, as employees with the required analytical and communication skills are scarce. Another 42 percent anticipate the skills gap becoming a problem within the next two years. The main reasons for the skills gap are changing technology (52 percent), employee turnover (50 percent), and labor shortages (48 percent). To address the skills gap, 70 percent of organizations plan to invest in employee development initiatives, focusing on upskilling their current workforce. The top five most in-demand skills are effective communication (65 percent), problem solving (55 percent), critical thinking (47 percent), attention to detail (43 percent), and analytical thinking (41 percent). While some companies see AI as a potential solution to the skills gap, the report suggests that skilled workers are less likely to be replaced by AI than low-wage workers. Currently, only 30 percent of organizations use ChatGPT (AI), but 32 percent believe it might change the skills they seek in employees. For now, AI’s impact on the skills gap remains a potential game-changer rather than a proven solution.