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Today’s Thoughts ☠️

Hey there 👋,

We’re getting all nerdy over a case study today.

If case studies we’re built like Hollywood films this would be one. We have twists and turns with AI, thousands of people in peril and the saviour which brings hope (and a bag load of cash).

Today, we’re unpacking how IKEA reskilled 8,500 employees displaced by AI and made $1.4 billion doing it.

Get your tea or beverage of choice ready, 🍵.

We've got lots to discuss!

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👀 In today’s chat:

• Human centered reskilling in the age of AI
  

• Don’t be ashamed to use AI

• AI and automation aren’t the same

FYI, the AI For Business Bootcamp is now sold out! If you want to get early access to the next cohort, drop your name on the waitlist.

THE BIG THOUGHT
A Tale of AI, Skills, Sexy Scandinavian Furniture And A Billion Dollars

AI is everything, everywhere and all at once.

Every industry is freaking out about what it will do to them. The challenge for many businesses isn’t just how to adopt the technology, but what to do with the people it displaces.

IKEA, a global leader in sleek furnishings (and delicious meatballs), faced this dilemma when they introduced an AI chatbot to handle customer service.

Billie, the AI bot, effectively managed 47% of customer inquiries.

This created a problem. The AI was really good and cost less money than humans. You’ve probably hear similar horror stories that start like this with other companies (looking at you Klarna).

But instead of cutting jobs, IKEA chose a different path, one that not only reskilled 8,500 employees but also generated a remarkable $1.4 billion in additional revenue.

See what I mean about movie potential? Just imagine the trailer.

I digress!

This case study is about how strategic reskilling, alongside AI adoption, can drive both business success and employee growth.

Let’s crack open that popcorn 🍿

Act 1: Displaced by AI

Like many retailers, IKEA deals with a high volume of customer service queries.

Side note: Customer service is a super hard job. One I would not survive, so if you do/have been there, I salute you 🫡.

To meet this demand more efficiently, they introduced an AI chatbot capable of handling routine customer inquiries. This solution quickly became a cost-effective tool while significantly reducing the need for human intervention.

Positive but also negative.

Instead of following the path of least resistance and letting these employees go, IKEA created a different story.

They realised that while the chatbot could handle basic queries, there were still numerous areas of the business where human skills and expertise were essential.

Why don’t more company’s think like this?

Act 2: How IKEA turned 8,500 Call Center Reps into Interior Design Advisors

Compiling this research required a crazy amount of internet sleuthing (thanks, Perplexity).

I couldn’t find out everything though. Particularly around how employees were reskilled into these new roles, and how long it took. Saying that, if you happen to work at IKEA and might know something, slide into my DMs.

Anyway, back to the action.

IKEA weren’t going to turn their back on these people. Their answer to this challenge was a comprehensive reskilling initiative. They had a plan to scale their interior design service.

Basically, you can call IKEA and they’ll help you pick complementary items for your room or their latest piece of sleek Scandinavian furniture you just purchased.

Pretty smart.

So, rather than downsizing, the company retrained 8,500 employees for these new roles as interior design consultants. These roles would leverage their existing customer service skills but added new layers of expertise that aligned with the company’s evolving business needs.

This is the point of the term “Reskilling”.

Instead of starting from scratch, they built on the employee’s foundational customer service knowledge. We can assume in this, training programs focused on crafting specific customer interaction, design, and sales capabilities.

Others were most likely up-skilled to handle more complex customer service tasks that required empathy and creative problem-solving.

The skills we know that AI can’t replicate.

Act 3: Show me the money, or, how reskilling created a $1.4 billion profit

OK, we’re near the end of our heroic tale.

The results of IKEA’s reskilling efforts were the stuff of high-grossing Disney films.

Not only did the company avoid layoffs, but they also unlocked new revenue streams. By retraining employees to offer value-added services in interior design consultations, IKEA enhanced their customer experience and sales.

The financial impact was significant: they reported $1.4 billion in additional revenue.

What can this teach us?

1. Technology and people don’t have to be in competition.

2. When deployed thoughtfully, AI can free up human talent to focus on more strategic and revenue-generating tasks.

(Yes, read that line again over-eager CEO).

Post-credits scene: Why reskilling is the answer to AI adoption and disruption

Jobs being displaced by AI doesn’t mean the end.

I’m not blind to the world, though. Some jobs will be gone and not everyone is going to make it at every company. Yet, these moments provide opportunities.

An opportunity to craft new skills and align humans where we’re most needed at work.

As I always say, use AI to enable you to do more of the human stuff (and hopefully the stuff you enjoy). Here’s 4 thoughts on why reskilling is a smart tool to deploy in this age of AI:

1. Reskilling is a strategic advantage, not a cost
   
   IKEA’s story demonstrates that reskilling isn’t just about retaining employees, it’s about positioning your business for growth.
   
   Instead of viewing AI as a threat to jobs, IKEA saw it as an opportunity to redeploy human talent to higher value roles. For L&D professionals, this is a key lesson: your reskilling efforts should be aligned with the strategic goals of the business.
   
   When done right, they can drive both employee engagement and financial performance (the holy grail, I know).
   
   

2. AI and Human skills can coexist
   
   One of the biggest concerns surrounding AI adoption is the fear that it will replace human jobs.
   
   IKEA’s approach shows AI can complement human capabilities rather than replace them. While the chatbot took over routine customer service tasks, humans were freed up to take on more complex, creative, and customer-centric roles—areas where AI still falls short.
   
   You (as in L&D) should focus on identifying these complementary areas within the organisation. By fostering skills that enhance, rather than compete with AI, companies can position themselves for success.
   
   Easier said than done, I’m aware.
   
   

3. Tailored Reskilling programs drive results
   
   I’m going to assume IKEA didn’t offer generic training to its employees.
   
   They (probably) crafted targeted programs designed to address specific business needs. You can’t create any old generic experience and deem it “reskilling”. You need to design training programs that bridge the gap between existing skills and the new demands brought on by AI and other emerging technologies.
   
   It’s worth noting that reskilling doesn’t mean starting from zero. Many employees already have valuable foundational skills that can be built upon.
   
   

4. Invest in People, reap rewards
   
   Perhaps the most important lesson from IKEA’s approach is the value of investing in people.
   
   I understand not every company will see it this way. Especially those money hungry titans.
   
   While AI may offer immediate cost savings, the long-term benefits of developing human talent can far outweigh those savings. IKEA’s reskilling initiative not only saved jobs but also turned a potential disruption into a revenue-generating opportunity.
   
   For L&D professionals, this highlights the importance of advocating for reskilling and upskilling initiatives at leadership level.
   
   When employees feel valued and are given the opportunity to grow, the business benefits.

📝 Final thoughts

OK, the movie is over, so what’s the conversation on the way home?

Ultimately, this story illustrates a path forward for businesses grappling with the challenges of AI adoption.

Instead of viewing AI as a threat, leverage it as a tool to drive innovation, while reskilling the workforce to meet new demands.

For L&D teams, the opportunity is clear: by championing reskilling efforts, you can help organisations not only survive but thrive in the age of AI.

IKEA’s $1.4 billion result is proof that investing in people is not just a moral decision, it’s a strategic one.

🤔 Want to be in the sequel?

Found this case study enlightening?

Feel free to share it with your network. Also, if you’re considering a similar transformation in your business, I’d love to hear about it.

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Till next time, you stay classy learning friend!

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SMART THOUGHTS

🤔  Don’t be ashamed to use AI at work

Sooo…I posted this on LI this week, and I wonder what you think?

It’s a mad world out there, sometimes. AI is a tool, and we need to start seeing it as such.

💡 How I’m using AI to challenge and improve my critical thinking skills

Who knew that using AI could make you more human.

This is reinforced to me almost daily. The more thought I give to intelligently collaborating with AI, the more I see that spill into my human exchanges.

Two things to expand on this:

1. Step by step ‘using ChatGPT as a thought partner’ tutorial

2. A exploration of “Unexpected ways AI can increase your critical thinking skills”

🔥  The difference between AI and Automation that so many get wrong

I hear the words AI and automation used interchangeably too often.

They’re not the same, but can work with each other. Save yourself the embarrassment at your next meeting about learning tech with this handy explainer. Don’t say I never look out for you! 😉

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