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Artificial Intelligence

The AI reskilling paradox: Slow down to get there faster 

Published November 13, 2025 in Artificial Intelligence • 8 min read • Audio availableAudio available

The biggest risk isn’t that AI under‑delivers. It’s that organizations overreact or underreact. Here we unpack the four zones of AI readiness and explain why building sandboxes is the best way forward.

The world is drunk on AI right now. Your boss just forwarded you another “urgent” article about Copilot. Your LinkedIn feed is a tsunami of AI transformation posts. IBM’s CEO says he’s pausing thousands of hires because AI could replace 30% of back‑office roles in five years. And here you are wondering if you’ll have a job next year. But let me tell you something surprising. The companies that win the AI race won’t be the ones running fastest. Speed without direction is chaos. The winners won’t panic first; they’ll build the sturdiest launchpads.

If you’ve been around long enough, you’ve seen this movie before. AI isn’t the first shiny object to set the world ablaze. Remember blockchain? We were told Bitcoin would replace the dollar by 2020. The Metaverse was supposed to be our new home by now. Gene therapy would cure cancer. Electric vehicles would make gas stations extinct by yesterday.

The direction? Mostly right. The timing? Spectacularly wrong. The pattern is undeniable. We consistently overestimate the speed of transformation and underestimate its depth.

AI is no different. Without question, large language models (LLMs) will transform business. But that transformation will not happen overnight. It will play out in waves. Leaps, yes. Stutters, too.

The biggest risk isn’t that AI under‑delivers. It’s that organizations overreact or underreact. Either they bolt forward on a foundation of sand or stand still until the tide takes them. Slowing down doesn’t mean stalling; it means aiming before you fire. Slow is smooth; smooth is fast.

The Coca‑Cola secret: build a sandbox, not a slide deck

When Coca-Cola decided to embrace generative AI, it didn’t send 50,000 employees to an AI bootcamp or hire a battalion of consultants. It did something radically simple. As Pratik Thakar, Coca‑Cola’s Head of Generative AI, put it: “We created a sandbox.”

A team of six – legal, comms, and tech – and a safe place to play. Not a strategy deck, not a 200‑page roadmap, but a playground where smart people could test DALL‑E and GPT without breaking anything important.

That sandbox birthed Create Real Magic, where customers could remix Coke’s iconic imagery using AI. More important than the campaign, it showed the company what was possible before anyone bet the farm. Winners build sandboxes; laggards build slideware.

Europe’s lesson: move fast, with guardrails

A German story brings the AI reskilling paradox to life. When DHL upgraded its AI voicebot, the team discovered a painfully human glitch: the bot often missed “Ja”, the German word for “yes”. That tiny failure was a big lesson: take the time to analyze what works and what doesn’t. Fix the basics before you scale.

DHL didn’t treat AI as a press release. It treated it as infrastructure inside real work. Today, that voicebot handles around a million calls a month and resolves about half of them without human intervention. The company didn’t get there by bypassing reality. Works councils took six months to agree on guidelines for AI. Regulations required tight guardrails. Rather than complain, DHL built a closed, companywide AI hub (Gaia), a “safe playground” to experiment with multiple models, test agents (such as customs coding helpers), and standardize adoption.

This is “slow is smooth” in action – deliberate governance with real sandboxes plus relentless iteration.

The four zones of AI readiness

Every organization sits somewhere on a simple grid: infrastructure readiness (data, tooling, skills) multiplied by urgency (how hard leadership is pushing). There are four zones:

  • Stagnation (low urgency/low readiness): low innovation and little progress.
  • Complacency (low urgency/high readiness): resources available but no drive; potential sits idle.
  • Frustration (high urgency/low readiness): lots of action without infrastructure; spinning wheels.
  • Innovation (high urgency/high readiness): upskilling success and balanced momentum.

Let’s look in more detail and chart the moves that pull you toward innovation:

Stagnation Zone: drifting toward irrelevance

In the Stagnation Zone, urgency is minimal and readiness is lacking. These are the companies that “wait and see” while the world changes. They dabble with pilots (if any) and lack data governance, cloud foundations, or skills. By the time they “see” a clear impact, hungrier rivals have lapped them. As Cisco’s Jeetu Patel warns, “Eventually there will be only two kinds of companies: those that are AI companies, and those that are irrelevant.”

Escape move: inject urgency and pick a first real use case. Make a small, visible bet that proves momentum is possible. Then use it to unlock budget for plumbing (data standards, shared access, basic governance). The goal isn’t a headline; it’s a working pattern that you can repeat.

Complacency Zone: big resources, but little fire

The Complacency Zone is, in some ways, the most tempting and insidious of all. Here, a company has built high readiness. Maybe they spent years on digital transformation, possess modern data centers, employ talented engineers, and have even installed AI tools. But there is low urgency to put them to bold use.

Escape move: manufacture urgency without theatrics. Set bold, public targets (e.g., “20% of customer contacts assisted by AI within 12 months”). Run challenge programs or hackathons to channel energy into real business problems. DHL does this through an internal startup lab that gives intrapreneurs the time, money, and skills to build. Pair the fire with two-way doors (reversible experiments): make it easy to try and safe to roll back. The more reversible the decision, the faster it should move.

Frustration Zone: when hype runs ahead of infrastructure

This is the 2025 default: high urgency, low readiness. Leaders decree, “AI everywhere!” Hackathons sprout. Consultants swarm. Then reality: data is siloed or dirty, teams aren’t trained, risk is unclear. Enthusiasm turns to whiplash. One telling stat: while nearly everyone invests in AI, close to 80% admit major gaps in data preparation.

Escape move: slow down to speed up. Redirect urgency into building capacity:

  • Fix the plumbing. Standardize definitions, clean key tables, and move from 50 Excel islands to a simple, searchable cloud backbone. No data, no sandbox, and no upskilling.
  • Create safe sandboxes. Put real tools next to real (but low-stakes) data. Make it easy to spin up a pilot, and just as easy to shut it down. DHL’s pilot funnel is a great model: prove value with a team, then widen the aperture.
  • Reskill by doing. Lectures don’t make muscles. Give teams two-week sprints to solve a live problem with AI. Celebrate prototypes, not PowerPoints.
  • Govern with doors. Label decisions as two-way (reversible: try fast) or one-way (hard to undo: review deeply). Don’t let one-way rigor slow every two-way idea.

The Frustration Zone ultimately is a transitory phase; or it should be. No company can sustain frenetic AI hype without results for long. You either regress (give up on AI initiatives, sliding toward stagnation), or you level up by building the muscle memory and infrastructure that convert high urgency into high readiness. The companies that successfully navigate through frustration emerge into the promised land: the Innovation Zone.

Innovation Zone: where transformation happens

Here, urgency and readiness meet. Executives don’t just talk; they practice, and they fund the boring stuff (data, access, MLOps). Middle managers are linchpins, translating strategy into sprints and fighting for data access. Frontlines are empowered to propose and run micro-sandboxes that solve real work problems. Governance is clear enough to go fast and strong enough to keep you safe.

Here are two telltale behaviors:

1. Scale conditions, not just solutions. When a plant manager halves defects with an AI assist, give them a trophy, then scale the conditions that made it work: shared data, the sandbox, and the budget line. That’s how wins become a flywheel.

Take DHL again as an example of an innovation mindset: they run structured pilots for genAI, but they also tie every experiment to business needs (better customer proposals, streamlined data handling, etc.). And Shopify, the e-commerce company, recently required all employees to start using AI tools – a bold move signaling that AI isn’t the domain of a few specialists but part of everyone’s job.

2. Add the missing role: the scout. Someone must constantly tap early alpha/beta models, bring them into the sandbox, and brief leadership on what’s real vs. hype. As Coca-Cola’s Thakar describes, part of his job is reaching out to AI innovators for early access, so Coke knows what’s coming and where to experiment next. The company formed a global partnership with OpenAI and Bain to explore the application of AI across its operations.

In the Innovation Zone, we also see a clear delineation of decision types. Leadership “think in doors”:

  • Two-way doors: reversible experiments – change a price band in one region, try an LLM to triage emails, pilot a pattern change on packaging. Move fast. If it flops, walk back.
  • One-way doors: irreversible bets – AI in safety-critical manufacturing, new product formulations, public-facing automation in regulated markets. Move deliberately and test in the sandbox until you’re confident.

This shared language enables everyone to move faster with fewer meetings, as the risk is explicit.

Everyone has a role

As the AI buzz continues to reverberate through every industry, it’s easy to get swept up in either panic or paralysis. But the stories above carry a clear message: the winners won’t be the loudest, they’ll be the most prepared to act decisively.

  • C-suite and AI wizards: set the ambition. Fund the plumbing. Appoint your Scout. Make two-way vs. one-way doors the default governance language. Model the behavior by using AI yourself.
  • Middle managers: you’re the force multiplier. Fight for data access, create team sandboxes, and pick crisp, reversible experiments tied to your KPIs. Coach the habits of using AI, and don’t just talk about it.
  • Frontline and individual contributors: if there’s no official sandbox, build a micro one. Start with public or non-sensitive data, propose a tiny pilot, and document results. Tinker, share, and repeat. If your environment is truly stifling, the skills you build now will be valued elsewhere.

When the hype dust settles, the organizations that practice, not just preach, will still be standing, stronger. Real transformation happens when infrastructure meets urgency. Get that right, and you’ll find yourself in the only place that compounds results.

Jialu Shan, Lawrence Tempel, and Alexandre Sonderegger contributed to this article.

Authors

Howard Yu - IMD Professor

Howard H. Yu

LEGOÂŽ Chair Professor of Management and Innovation at IMD

Howard Yu, hailing from Hong Kong, holds the title of LEGOÂŽ Professor of Management and Innovation at IMD. He leads the Center for Future Readiness, founded in 2020 with support from the LEGO Brand Group, to guide companies through strategic transformation. Recognized globally for his expertise, he was honored in 2023 with the Thinkers50 Strategy Award, recognizing his substantial contributions to management strategy and future readiness. At IMD, Howard Yu directs the Strategy for Future Readiness program.

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