The shift from a knowledge-based economy to a human-centred economy is inevitable. As automation and artificial intelligence (AI) continue to advance, the value of purely cognitive skills is diminishing. Instead, the economy is increasingly valuing human skills such as creativity, emotional intelligence, and the ability to inspire others. This shift is driven by three interconnected trends: the rise of AI, the increasing importance of social skills, and the persisting inequalities in income and opportunities.

AI is rapidly advancing, outperforming humans in tasks previously thought to be exclusive to humans. Yet, despite this, AI lacks the ability to replicate human creativity, empathy, and leadership. As a result, these human skills are becoming more valuable in the economy.

Simultaneously, social skills are becoming increasingly important. Research shows that jobs requiring high levels of social interaction have grown more than any other category. This is due to the increasing complexity and interconnectedness of work, which necessitates effective communication and collaboration.

Finally, despite the increasing value of human skills, there is a persistent inequality in income and opportunities. This is because human skills are difficult to measure and often undervalued, leading to a widening gap between the highly skilled and the less skilled. To address this, companies and governments need to invest in education and training that focus on developing these human skills.

In summary, the shift from a knowledge-based economy to a human-centred economy is inevitable, driven by the rise of AI, the increasing importance of social skills, and persisting inequalities. This shift necessitates a rethinking of education and training to focus on developing human skills.

Go to source article: https://hbr.org/2014/11/from-the-knowledge-economy-to-the-human-economy