This post was written by a guest contributor.
The way people get hired and do work is changing. If you’ve been browsing job listings recently, you may have noticed more employers seeking candidates with generative AI and machine learning models. As a result, AI literacy skills are quickly becoming a workplace staple.
Traditional workplace basics like Microsoft Excel skills are still considered an industry standard. However, they may soon be eclipsed by AI. There’s no denying that AI skills are becoming indispensable. Although there’s little chance that conventional tools will be phased out entirely, they may soon take a backseat to intelligent automation.
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What AI literacy looks like in the workplace
Since machine learning models are highly customizable, workflows vary widely. However, AI literacy tends to manifest similarly across workplaces because its core functions are pretty much the same. That’s why a solid knowledge of Gen AI could give you an edge in the competitive job market.
Defining AI literacy and competency
The term “AI literacy” encompasses the knowledge and skills needed to understand and use AI tech effectively. This includes navigation, prompt engineering, and output interpretation. Since models communicate with natural language rather than with menus or code, they have a learning curve.
Say you need to create a mock-up to showcase a design change before it’s approved for production. To use conventional graphic design tools like Canva or Photoshop, you need to know how to import files, navigate menus, and use keyboard shortcuts. While the AI-driven process may be objectively easier, you must first understand which tool to use and how to prompt.
The four core domains of AI literacy
AI literacy has four core domains:
- The first is knowledge of the tool itself. You must understand prompting, just as you need to know how Microsoft Excel’s logic works to create working formulas.
- The second involves selection and navigation. Knowing which tool to use and how to use it is key to success.
- This leads directly into the third domain — evaluation. Critical thinking and fact-checking are key, as generative models may hallucinate and give you incorrect information if improperly trained.
- The final domain concerns practical application. It’s not enough to understand how AI works. You must know how to use it in your specific workflows while also knowing where you shouldn’t use it.
Excel and AI literacy skills are equally important
Machine learning technology is replacing or fundamentally changing many industries, making computer skills less relevant. It has not existed for nearly as long as traditional workplace basics. However, when weighing the importance of AI skills vs Excel competency, there is little difference.
The 2024 annual Work Trend Index surveyed workers worldwide. It reveals that 75% of employees already use generative AI at work. Most use their tool of choice rather than the company-provided platform. This aligns with employers’ mindsets, as leaders are more likely to hire less experienced individuals with AI skills than more experienced ones without them. Some won’t even consider candidates unless they’re familiar with AI.
The high rate of AI usage in the workplace indicates the growing importance of AI skills. Ignoring this trend would be like disregarding the rise of computers in favor of pen-and-paper systems. Oftentimes, when a revolutionary technology becomes more accessible, people take advantage of it. Then, the world adapts, and businesses and workers must follow.
Even if you don’t use AI, there’s a high likelihood that the tools you use already have integrated AI features. Intelligent automation is reshaping technical skills like typing, programming, and computer-aided design. Software solutions that have existed for decades are modernizing to keep up. For instance, Excel is leveraging Microsoft’s Copilot to streamline formulation and data cleaning.
Why AI literacy matters regardless of role
Beyond knowing what AI literacy is, you need to understand why AI literacy matters. Employers increasingly expect familiarity with these tools across roles, so you must have a solid understanding of this technology. Whether you’re applying for an entry-level job or an executive position, hiring teams want to see AI skills on your résumé.
While MS Excel competency and AI literacy skills may not seem comparable, they’re equally important in employers’ eyes. Computer technology reshaped virtually every sector. Now, AI is doing the same, even in workplaces that don’t have AI tools in their official tech stacks.
More employers are allowing employees to use their personal phones or laptops for work purposes, with about 90% of employees using both personal and company devices for work. Businesses benefit from increased productivity, decreased operational costs, and improved job satisfaction. Employees benefit from personalized, on-the-go AI access. This approach makes it easier to use AI at work, even if your organization does not officially offer such tools.
Regardless of your role, AI literacy matters. Machine learning tools are finding their way into management and executive positions. As such, a lack of AI skills may create barriers to upward job mobility. If you ignore this trend, you may face stagnant professional growth or long-term wage penalties.
Are your Excel skills transferable to AI platforms?
Eventually, filling cells, writing formulas, and categorizing data will become automated, and when that happens, you’ll have to measure your competency differently. Your organization will likely still use digital spreadsheets, but day-to-day software interactions will look different, so there’s no point in becoming an expert with another niche tool. Instead, you should transfer your Excel skills to AI platforms.
Comparing AI skills vs Excel skills
Comparing AI skills vs Excel skills is now key. Experts suggest the half-life of skills is shortening as markets and technology advance. What you learned a mere two years ago may already be outdated.
To use basic workplace tools like Excel, you must know how to write formulas, create charts, clean data, and export files. Prompt engineering, critical thinking, output interpretation, and coding are AI skills. Your existing knowledge is valuable.
How well do Excel skills translate into AI literacy?
AI tools can already automate most repetitive tasks. However, the basics of Excel are not changing, so your old skills will come in handy. A model may be able to create a formula on the fly, but it does not know your objectives. You need to know enough about creating formulas and charts to tell it what to do.
For tasks not involving spreadsheets, certain Excel skills are still useful. Pattern analysis and data cleaning are invaluable during training and prompting, which are helpful in enhancing AI literacy. As a platform that lets you define calculations and logic, Excel acts as a programming language. You can use your existing knowledge to improve your coding skills.
Will AI literacy become a hiring prerequisite?
AI literacy may soon become a prerequisite for many jobs. According to experts, AI skills are in high demand, creating a wide range of career opportunities across varied industries. Investing in upskilling could help you achieve a competitive edge in the job market, but only if you clearly outline your competencies.
It would be wise to list transferable skills, such as coding, data cleaning, pattern analysis, critical thinking, communication, and iteration, on your résumé. Also, if you have a section listing the hardware and software solutions you’re proficient in, make sure to include the AI tools you’ve used, even if you're yet to use them in a professional capacity.
AI literacy impacts career trajectory
Employers seeking candidates with AI literacy skills may move your résumé to the top of the stack. But if you don’t detail your proficiency with the latest machine learning tools, they may also just skip it.
Chances are that AI is coming to your workplace soon, if it hasn’t already. Data shows 92% of businesses plan to invest more in internal AI tools. Even if your employer is among the 8% that don’t plan on investing more, it’s clear that AI literacy matters to most. If you don’t understand how to use this technology, your career trajectory may be adversely affected.
How early adopters could benefit
By upskilling, you make yourself a more attractive candidate. The average yearly salary is $64,505 in the United States. Remote workers tend to make half that, trading pay for a flexible schedule. To avoid a pay cut, work on your AI literacy skills so you can increase the chances of getting offered competitive rates. This will also help your upward mobility to gain momentum.
Practical ways to build your AI skill set today
Knowing you need to develop your AI literacy skills is one thing. Doing it is another. You can make abstract concepts, like prompt engineering, more actionable by following these four practical approaches. They’re universal, so you can adopt them regardless of your industry or existing computer skills.
1. Go beyond the basic AI prompts
To build an AI skill set, look beyond prompting. You may interact with AI in numerous other ways, from résumé building to interviewing. First-round interviews are now typically handled by AI models that evaluate candidates based on body language, keywords, and tone of voice. If you speak clearly and avoid poor lighting, you may outperform other candidates.
2. Test your skills on different tools
No model is exactly the same. Some may have AI run in the background, while others let you interact directly. Each tool is unique, so you should acquaint yourself with multiple tools to gain an understanding of the fundamentals.
3. Prepare for human-AI collaboration
Humans are still present behind the scenes. Reports show most application rejections come from humans, not from AI-assisted applicant tracking systems. Continue developing your people skills to network effectively and maintain upward job mobility.
4. Identify your AI-ready workflows
AI should enhance your current workflows, not create more work, so knowing where to integrate it is key. Consider your day-to-day tasks. Which would benefit from intelligent automation? Clustering, formula generation, classification, and data cleaning are all tasks a machine learning model can easily handle. If you work in a creative or customer-facing role, you can use generative algorithms to create product mockups or respond to emails.
Demonstrating your AI proficiency to employers
Researchers examined 70 million job transitions to find out if career progression typically follows a structured path. As people are promoted, they require more education, and their duties are less likely to be automated. The researchers found that this nested structure has become more prevalent in the past two decades.
Their findings assume that automation can be intelligent. AI does not just automate basic, repetitive tasks. It can handle complex, higher-level responsibilities, such as project oversight, cross-department collaboration, and strategic decision-making.
Demonstrating AI proficiency to employers is becoming increasingly important, as shown by LinkedIn’s Skills on the Rise list. Employers are increasingly seeking skills over degrees or job titles. In 2025, AI literacy was the No. 1 fastest-growing ability.
You may want to be more overt if your employer has a BYOD policy, as they may be unable to track AI use on personal devices. Send emails or schedule meetings to discuss your expanding skill set. Aim to be seen as future-forward, be assigned higher-level responsibilities, or increase your chances of a promotion.
You can also demonstrate your proficiency by updating your résumé. Be careful not to make it AI-centric. While experience with this technology is a selling point, technical skills are still valuable. The 2025 AI at Work report from Indeed’s Hiring Lab revealed that jobs are more likely to be changed by AI rather than replaced. Just 0.7% of the total skills analyzed were “most likely” to be replaced. The rest will either only change slightly or be unaffected.
AI is about to have its spreadsheet moment
If you were to weigh your AI skills vs Excel skills, which would come out on top? Your answer could influence your career trajectory. Despite all the hype around AI, employers still value basic computer skills. However, many value AI literacy skills even more. Regardless of the industry you’re in or the role you are applying for, it would be wise to invest time in prompt engineering, coding, and model development. Exploring these skills could give you a competitive edge in today’s job market.