Learning & Development Trends and Transformations Insights Report 2026

Latest Top 10 Trends and Challenges in Learning & Development

2026 is the year that AI has shifted from a new, experimental technology to a function that must demonstrate its value and efficacy as a training tool. Upskilling is firmly at the top of the agenda.

The scale of the challenge is significant. The World Economic Forum predicts that 39% of existing skill sets will be transformed or become outdated by 2030, while skills gaps are considered the biggest barrier to business transformation, with 63% of employers identifying them as a major obstacle over the 2025–2030 period. Around 87% of companies already have a skills gap, and existing talent pipelines simply cannot produce the capabilities required — making internal mobility, upskilling and reskilling critical to filling the void.

AI offers enormous potential here. Augmenting jobs with AI and upskilling employees, rather than replacing workers, could add up to US$6.6 trillion to the US economy by 2034. But with budgets tight, L&D is still having to do more with less — and AI’s efficacy as a training solution remains unproven at scale. As Harvard Business Review observes, the pace of technological change now exceeds our capacity to fully make sense of it.

There’s also a lack of clarity among many organisations about the specific AI skills they require. The rise of hybrid work models, automation and the gig economy has reshaped how employees engage with learning. Meanwhile, reflective intelligence — the conscious act of recognising patterns in behaviour and asking what they reveal — is increasingly seen as a vital human capability for the age of AI.

To identify the top priorities and challenges for the Australian L&D sector in 2026, we interviewed a range of L&D leaders across industries to get their insight and perspective on where the profession is heading — and where the solutions can be found.