IBM and Pearson Target US$1.1tn Tech Skills Gap With watsonx

IBM and Pearson have identified a US$1.1tn gap in the US economy caused by inefficient career transitions and skills mismatches. 

As AI reshapes the workplace faster than workers can retrain, the two companies are launching a partnership to build AI-powered learning products that address a fundamental mismatch between technological change and human capability.

The deal centres on IBM’s watsonx Orchestrate and watsonx Governance technologies, which will underpin tools for businesses, public organisations and education providers. Pearson’s research suggests employers, educators and workers need faster routes to new skills as AI fundamentally alters job requirements.

Research by Equinix found that 67% of UK IT decision-makers view personnel shortages as one of the main threats to their business, with 61% acknowledging the problem has worsened due to the speed of technological change.

IBM watsonx will power Pearson learning platform

IBM will construct a custom AI platform for Pearson based on IBM Consulting Advantage, which combines AI assistants and agents with human expertise. Pearson intends to use the platform to launch new products and transform its internal operations, with particular focus on workflows, productivity and data-driven decision-making.

“Technology is evolving faster than human skills can keep pace” says Omar Abbosh, CEO of Pearson. “To close this gap, learning must be embedded seamlessly into the flow of work. When people learn where work happens, it has an immediate impact on productivity and performance.”

The partnership establishes Pearson as IBM’s primary strategic partner for upskilling and workforce transformation. IBM’s 270,000 employees and its customer base will gain access to Pearson’s enterprise learning solutions: Credly for digital credentialing, Faethm for workforce planning and Pearson Professional Assessments, which currently delivers IBM’s professional certification exams globally.

Pearson and IBM to develop AI agent verification tools

The companies will also develop tools to verify the capabilities of AI agents before organisations deploy them. As autonomous AI agents take on business tasks, the verification system would combine IBM’s expertise in AI systems with Pearson's experience in assessment, credentialing and skills verification.

McKinsey projects that demand for AI-skilled workers will outpace supply by two to four times, a gap likely to persist until at least 2027. A ManpowerGroup survey of over 40,000 employers found that 74% struggle to find skilled talent, with 60% citing skills gaps as a barrier to digital strategies.

“Whether you’re leading a company or just graduating, everyone needs to build new skills for the AI era,” says Arvind Krishna, CEO of IBM. “IBM and Pearson are bringing AI-powered education to more organisations to help people learn faster.”

The approach mirrors Pearson’s existing work in human certification, applying assessment methodologies to AI systems. This would give organisations greater confidence when deploying autonomous agents across operations.

Upskilling trumps degrees as hiring priorities shift

The agreement forms part of Pearson’s strategy to work with select partners on joint products and market initiatives. The learning tools will launch globally, targeting organisations addressing skills gaps as AI transforms job roles and requirements. The platform aims to integrate learning into daily work patterns rather than positioning it as a separate activity.

Research from training platform Revature shows that 77% of US organisations have been negatively impacted by the IT skills gap, with 56% making upskilling or reskilling their biggest priority. The survey found that 29% of respondents ranked AI, generative AI, and machine learning as the most important capabilities out of seven skills assessed.

A separate study by freelance platform Upwork found that 80% of executives now prioritise skills over degrees when hiring, with half planning to increase freelance hiring to address gaps in AI capabilities. The platform aims to integrate learning into daily work patterns rather than positioning it as a separate activity.

“Technology is evolving faster than human skills can keep pace,” says Omar. “To close this gap, learning must be embedded seamlessly into the flow of work. When people learn where work happens, it has an immediate impact on productivity and performance.”