What Is the Learning Efficiency Paradox?
In the wake of the AI workplace revolution, leaders are asking learning, talent, and HR teams to deliver more skill development and ROI faster but you have a lower budget, less time, and a smaller team to make this happen. It’s the “more with less” idea, except now you have a tool that’s actually supposed to help you accomplish all of it: AI.
That’s the learning efficiency paradox. AI is meant to create greater efficiency and productivity, but employees have to be able to use it well. If they can’t, they may not make any gains and AI may even become a blocker.
Businesses are not yet seeing the ROI on their AI investments, and this is why. Speed isn’t everything. AI works fast, but unless we reimagine work and learning, that speed comes at the cost of people, processes, and real innovation. Without guidance and intentionality along with it, people can become overwhelmed, processes can descend into chaos, and “innovation” is limited to whatever commoditized knowledge and ideas AI has to offer.
The tension between scale and substance, speed and depth, activity and impact, is reaching a fever pitch. It’s not enough to create and complete training quickly; people need to absorb and apply knowledge effectively.
It’s time to redefine efficiency in a way that’s sustainable for long-term business success. In most organizations, AI transformation initiatives are targeting speed and productivity above all else. But that can’t last because people won’t be able to keep up.
Efficiency is not just about moving faster, it’s about doing things better. And it starts with people, not technology.
The Efficiency Paradox and the Human Side of AI Transformation
Getting AI transformation right may seem like a technology problem, but it’s also a people problem. AI was supposed to increase efficiency, but many businesses aren’t seeing the results yet. In fact, nearly 95% of businesses saw zero return on in-house AI investments and only 15% of Gen AI users report their organizations see significant ROI from it.
Perhaps understandably, the tendency is to view the lack of progress as a technological issue, so companies are continually funneling money into AI initiatives. After 85% of leaders increased AI investments over the last year, nine out ten enterprise leaders still expect to spend more on Gen AI next year, according to Knowledge at Wharton (88%) and Deloitte (91%).
Yet, despite the sharp uptick in AI spending, The Federal Reserve Bank of St. Louis reported that in the last year, AI use at work has only risen from 33% (2024) to 37.5% (2025). Similarly, a global PwC report found that 14% of respondents are using Gen AI daily, compared to only 12% in 2024. The increases in use are not yet aligning with the massive spending on these initiatives.
The bottom line? To recognize the deep value AI promises, employees will need to upskill both faster and more effectively, as the number of skills they need and the speed at which they need them continue to grow. To do that, businesses need to invest in the human side of AI transformation. In the end of the day, AI initiatives need to be effective for the people who will use them to innovate, to find new ways of working, and to ultimately drive business growth.
AI’s Role In the Learning Efficiency Paradox
While AI is certainly driving the urgent change that businesses are grappling with, it’s also contributing to the solution. That’s the other piece of the paradox.
How?
AI’s capabilities, when used correctly, open the door to untapped potential in enabling the fast and thorough skill development people need to keep pace with AI. You need learning efficiency. Static learning content libraries and self-service development won’t do the job any more. AI unlocks opportunities for personalization, interactivity, and innovation.
Personalization
When your employees have access to the most relevant content possible, it means they don’t have to waste precious learning time looking for the right content. AI can use skill data and the foundations of learning science to ensure content is always relevant for the learner’s role and skill level.
Interactivity
AI allows for more responsive content than has ever been possible before. This goes beyond personalization: You can practice real conversational scenarios, practice for key interactions, and get immediate feedback. This is an unprecedented way of learning that helps cement capability.
Innovation
Innovation comes in many forms, and AI has a lot of potential to drive creative improvements to existing processes. According to McKinsey, half of AI high performers expect to use AI to transform their businesses, mostly through redesigning workflows. Reimagining traditional processes and procedures can be the key to greater efficiency, with human and AI capabilities operating in tandem.
The learning efficiency paradox is both an opportunity and a new challenge. Take the opportunity to join in-depth, expert-led discussions on solving this efficiency paradox at Degreed LENS 2026 in Orlando, Florida. From an agenda filled with workshops, roundtables, and sessions rich with insights, you’ll learn from and network with the best in the business.
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