The Real Remedy: Maximizing the Value of Skills and AI with PwC

During our most recent Skills Day, we heard from Alex Pahl, Global Head of SAP HCP and SAP HR Cloud Solutions at PwC, who shared valuable insights on the transformative power of AI in skills-based decision-making. 

Addressing a critical question many clients are asking — “What should we do with our skills-based employees, and can AI simplify these conversations?” — Pahl emphasized that while AI can be a powerful tool, its effectiveness depends on a well-structured strategy.

Keep reading for the highlights or watch the full segment below. 

Aligning Strategies: From Global Goals to IT

Pahl stressed the importance of mapping skills-based decision-making from a top-down perspective. Starting with global company goals, such as innovation, internationalization, and cost reduction, organizations need to align these with their HR and IT strategies. “You need to transform your company and your people to the strategy,” Pahl said, underscoring that effective skills management requires a cohesive approach.

PwC’s journey exemplifies this principle. Initially, their approach was too localized, focusing on specific regional solutions. “We were looking at a German way and an Austrian way instead of a European way,” Pahl explained. By adopting a broader, European strategy, PwC was able to foster better alignment with overarching business objectives. 

The Role of IT and Technology

For IT, the focus should be on how its strategy supports both current and future HR strategies. It’s not enough to simply evaluate the relationships between HRIS tools; organizations must consider the bigger picture. Stable security and efficient IT services are foundational to achieving these goals.

“Where do skills fit into this?” Pahl asked. The answer lies in ensuring the right people with the right skills are in place to meet business objectives. PwC transformed its recruitment and sourcing operations into a European shared service center, implementing technology aligned with its mapped strategy. AI-powered technology, such as a Talent CRM and skills ontology, streamline data parsing processes while providing users with personalized recommendations, insights, and suggested actions based on the organization's available data. This shift enabled PwC to create a centralized data pool that supports hiring and onboarding based on skills, reducing costs and improving efficiency.

Legal Considerations and Data-Driven Success

Pahl highlighted the importance of integrating legal reviews and conversations early in the technology acquisition and implementation process. Ensuring compliance with legal requirements — like GDPR, CCPA, and the EU AI Act — across multiple countries is essential to avoid pitfalls and ensure smooth execution.

By combining strategy, skills transformation, change management, legal considerations, and technology, PwC built a robust system. With over 200,000 applicants annually, their centralized data pool has been instrumental in reducing sourcing costs while identifying and hiring the right talent. After nine months of leveraging AI and machine learning, PwC achieved a nearly zero-cost sourcing model. “AI pumps all the data in a lake of information into a detailed list of skills that we need to support our global strategy and help us find the right people,” Pahl explained. This approach significantly reduced both their cost and time to hire, he said.

Discover the Best Way to Use AI in Your Organization

Pahl concluded with a key takeaway: AI is not a universal remedy. To unlock its potential, organizations must map AI to their strategy, skills transformation, change management, legal requirements, and technology infrastructure. These five pillars are critical for leveraging AI effectively and turning vast amounts of data into actionable insights. For practical insights on how to balance AI implementation and required governance, watch this Skills Day session on demand. 

PwC’s experience provides a compelling roadmap for organizations aiming to integrate AI into their skills-based decision-making processes while driving cost efficiency and innovation.

Want to take a deeper dive into skills? Request a Skills Snapshot to view your organization’s roles, skills, and progressions.