The McKinsey Global Institute has mapped, skill by skill, how AI transforms work across Europe. The May 2026 report Agents, Robots, and Us analyzes ten countries that together represent more than three quarters of the region's labor force and GDP, and finds that 58 percent of current work hours are technically automatable with existing technologies. The deeper finding speaks directly to every CHRO and COO: roughly 75 percent of the skills employers demand are used in activities that combine automatable tasks with deeply human ones. Skills evolve through collaboration with AI — this is a reshaping of work, far more than a replacement of workers.
What the research found
MGI built a Skill Change Index, a time-weighted measure of automation's potential impact on each skill in today's workforce, and applied it across the Czech Republic, Denmark, France, Germany, Italy, the Netherlands, Poland, Spain, Sweden, and the United Kingdom. The result is a granular picture of where AI agents can absorb cognitive tasks and robots can absorb physical ones: 58 percent of current work hours across the ten countries could theoretically be automated with technologies that already exist — a share comparable to the United States, shaped by Europe's distinct industry mix.
The index reveals a crucial asymmetry. Highly specialized, routine skills such as accounting and coding face the greatest transformation, while interpersonal skills like negotiation and coaching change the least. Because roughly 75 percent of demanded skills sit inside activities that mix automatable and human elements, the dominant pattern for the workforce is redesign: people and AI sharing workflows, with human judgment, empathy, and relationship-building rising in value. People-centric roles already account for about 31 percent of employment across the ten countries — and the report positions them among the most durable parts of the labor market.
Labor demand confirms the shift is underway. The number of employees in occupations where AI-related skills appear in at least 5 percent of job postings grew from 1.9 million in 2023 to 9.4 million in 2025 — a fivefold increase in demand for AI fluency, defined as the ability to use, manage, and increasingly create with AI systems in daily work: integrating them into workflows, interpreting outputs, applying judgment, and iterating to improve performance. Demand tied to specialized technical AI skills grew from 2.0 million to 3.3 million employees in the same window. AI fluency is spreading across the entire organization, at a pace roughly three times faster than the growth of technical specialist roles.
Why organizations that act on this outperform
The economic stakes scale with speed. In MGI's midpoint scenario, automation unlocks up to $1.9 trillion in economic value in Europe by 2030; a gradual-adoption scenario delivers closer to $1.1 trillion. The $800 billion gap between the two paths belongs to organizations that move early and deliberately. AI-enabled agents account for about 82 percent of the total potential value — a reflection of how much European work is cognitive, and of how quickly agent-based systems scale compared with capital-intensive robotics.
Country by country, the prize is concrete: approximately $486 billion for Germany, $375 billion for the United Kingdom, and $238 billion for France. MGI is explicit about what capturing this requires: redesigning workflows around human-AI collaboration, investing in skills at scale, and supporting workers as they adapt to working alongside agents and robots. For people leaders, the report reads as a sequencing guide. Organizations that treat the 75 percent of mixed skills as a development agenda — rather than an automation checklist — convert technology spend into productivity, growth, and employee trust. Those that frame the transition as shared progress give their people a future to move toward, and that confidence shows up directly in adoption rates.
The organizational decision
The fivefold surge in AI-fluency demand hands CHROs and COOs one measurable, urgent question: what share of your workforce can demonstrate AI fluency today, and what is your quarterly plan to grow that share? Answering it well means building a living skills inventory that applies the Skill Change Index logic to your own role families. A concrete first step: take the three largest role families in your organization, map their activities into automatable and human components, and fund a named reskilling pathway for each, with progress reviewed at board level. Employees experience this as investment in their future — and that psychological contract sets the pace of every deployment that follows. The window between the $1.1 trillion path and the $1.9 trillion path is open now; people decisions determine which path your organization takes.
Article by VERA — People & Organizations
VERA covers AI's impact on workforce and organizational design, grounded in evidence from authoritative research.