November 20 2025

Thriving in the Age of AI: Skills over Knowledge

Mathew Parackal


Dr Mathew Parackal

Introduction
The emergence of Generative Artificial Intelligence (GenAI), with tools like ChatGPT, has transformed how we interact with our environment. Its impact on learning and understanding is profound when compared with previous foundational technologies such as the personal computer, the Internet, and search engines. As the scope of GenAI becomes evident, the discourse has shifted from apprehension to transformation. It has become an essential tool for remaining competitive in the current AI era.

The Mindset for the AI Era
Humans discover knowledge by responding to stimuli, a process that begins in the womb. Consider a baby responding to its mother’s voice. From this initial stimulus, the baby progresses to react to colours, sounds and objects. The baby uses its senses (hearing, touching, seeing, and tasting) to communicate messages that are sent to the brain for meaning-making. This cognitive process interprets and makes associations to figure things out or learn.

As the baby grows, the stimuli it responds to become more complex, fuelled by curiosity. It gets the baby crawling, reaching out to grab objects and making observations. The senses relay information to the brain, which processes and assigns meanings, laying the foundation of a network of synapses that eventually manifest as intelligence or knowledge. The knowledge network is facilitated by the senses themselves, which improve in sensitivity as the baby grows. This sensitivity is manifested as critical thinking, analytical evaluation and effective communication. As can be envisaged, the developmental paths of knowledge and skills, while complementary, are different. Both must be synchronously developed to match the developmental expectations corresponding to each stage of life.

Learning continues into adulthood with curiosity acting as the pilot. Curiosity stimulates interest and engagement, producing new knowledge. As the level of knowledge advances, individuals need to rely on organisations that facilitate their curiosity needs. For organisations, this requires a mindset that permits creating an ecosystem giving employees unlimited opportunities to excel. This mindset is best captured in a quote by Steve Jobs, who famously said:

It doesn't make sense to hire smart people and tell them what to do;
we hire smart people so they can tell us what to do.

Entering the AI era, organisations must embrace this mindset to host and support people who are smart and curious.

From AI-Averse to AI-Ready: The Personal Transformation
The impact of GenAI is permeating all walks of life, and its global adoption is triggering another revolution. For example, over 500 million people actively use OpenAI’s platforms¹ ², making GenAI the fastest-growing technology in history. This technology is expected to broaden economic opportunities and improve quality of life. As with previous revolutions (industrial and digital), the AI revolution will be driven by people and investment. The reality is that some roles will become redundant. The trade-off, for the sake of growth and progress, is letting go of people who lack the ability and skill to work in AI environment. While this is painful, it is a natural occurrence that happens with all revolutions. Just as industry keeps pace with progress, it is equally important for individuals to upskill in order to thrive in the AI era.

AI adoption for offering business solutions remain superficial. For example, in New Zealand, uptake has been impressive in adopting the foundational platforms such as ChatGPT³. However, only 13% of businesses have invested in custom-built AI solutions. This suggests a significant opportunity for members of the current workforce to advance their careers. For those entering the workforce, this is an opportune time, provided they know how to engage with AI and use it effectively. This requires what they are learn in schools and tertiary institutions. The workforce will evolve to be made up of AI-proficient employees but this requires learning new skills.

Skills Over Knowledge: Thriving in the GenAI Era
Unlike previous technologies, GenAI is widely accessible, much like electricity. This is expected to reshape the social and economic landscape. A defining character of the AI age is the commoditisation of knowledge, making it readily available. Knowledge will no longer be the catalyst for progress. Competitive advantage will instead come through high-level skills that enable intelligent navigation of GenAI. In essence, the knowledge economy is exiting, and in its place, thinkers, analysts and communicators will be the drivers of the economy. The AI economy requires people to have strong domain expertise and high-level skills to handle sophisticated technologies. Consider this situation: patients visiting their healthcare specialists would know their condition and treatment options. The specialist, on reviewing the case, would be required to make judgement calls on the optimal treatment option. Judgement involves evaluating options and making trade-offs to determine the course of action in the patient’s best interest.

Sound judgement requires access to accurate knowledge, whether through experience, colleagues, or tools like ChatGPT. Trade-offs demand critical thinking to weigh alternatives. Thus, working in the AI age requires deep domain knowledge combined with skills such as active listening, analytical reasoning, and effective communication. While knowledge can be accessed on demand, what the industry needs is skills for making trade-offs and leveraging GenAI models effectively.

References

  1. The Outpost (2025). OpenAI Hits $10 Billion in Annual Revenue, Expands Business User Base to 3 Million. 5 Jun 2025. Available at: https://theoutpost.ai/news-story/open-ai-reaches-3-million-business-users-unveils-new-workplace-ai-tools-16212/
  2. Reuters (2025). OpenAI's annualized revenue hits $10 billion, up from $5.5 billion in December 2024. Available at: https://www.reuters.com/business/media-telecom/openais-annualized-revenue-hits-10-billion-up-55-billion-december-2024-2025-06-09/