Trends come and go. Strategies evolve. What worked yesterday might not cut it today.
In last year’s Hot or Not breakdown, we highlighted the rise of skills-based learning and AI-driven personalization. This year, AI in particular is accelerating—and we also take a look at leadership development and tracking comprehensive metrics that capture the positive business impacts of workforce development.
In 2025, savvy learning leaders are doubling down on AI-powered upskilling, business-aligned learning strategies, and human-centric development. At the same time, an over reliance on more-is-better thinking—which often leads to random learning content dumps—is fading further and further.
Which trends should you embrace—and which should you leave behind? Let’s dive into what’s hot (and what’s not).
What’s hot? AI-enhanced L&D
AI is revolutionizing L&D through and through—from big-picture workforce planning to individual learning experiences for frontline employees. Why? The promise of more efficient upskilling, greater engagement, and a workforce that’s continuously evolving in alignment with business needs.
Innovative organizations are using AI to:
- Identify skills gaps and optimize talent strategies to bridge them.
- Design business-aligned L&D programs using AI-driven skill data, workforce analytics, and talent forecasting.
- Implement learning strategies across an entire workforce for faster content creation, smarter content recommendations, personalized employee coaching, and more.
“After 20 years of revolution in how knowledge and skills are developed, everything in learning is changing again,” said Max Wessel, Degreed Co-CEO. “With gains in artificial intelligence, for the first time we can imagine putting the world’s greatest tutor in the pocket of every learner. . . For every industry, for every corporation, and for every individual, the possibilities are seemingly endless.”
With employee development enhanced by AI, individual employees learn exactly what they need according to their existing skills, goals, and company’s priorities. Organizations are realizing that curation, not just accumulation, is the key to effective learning. And they’re using AI to surface content, create skill-aligned learning paths, and coach employees individually, ensuring learners find high-quality, relevant materials without the frustration of endless searching.
What’s not hot? Ignoring the human side of work
AI is no longer a futuristic concept. It’s actively reshaping workforce planning and learning. However, it’s not replacing the workforce. Forward-thinking CLOs are leveraging AI and human expertise to ensure their workforces have the skills they need to drive business.
Human-centric Technology
Companies are moving beyond learning management systems (LMSs) to create holistic learning ecosystems that not only meet employees where they are, but also encourage continuous development. Instead of isolated training events and information dumps, organizations are investing in solutions that reinforce learning over time, prioritizing engagement, skills tracking, and real-world application over completion rates.
Modern learning strategies emphasize human connection through microlearning, coaching, and peer-to-peer knowledge sharing. Leaders are fostering engagement with structured programs like Degreed Academies, mentorship circles, and peer-led discussions—proving that social learning is key to skill retention and long-term growth.
Group- and Cohort-based Learning
Collaborative learning fosters accountability, deeper discussions, and real-world application of knowledge. Employees retain more when they learn from each other. Cohort-based learning promotes problem solving, knowledge sharing, and networking, making it an outstanding component of any innovative and comprehensive L&D strategy.
Bringing Soft Skills into Focus
As workers use AI to perform more complex tasks, soft skills—those that only humans can possess—are more valuable than ever. Sharp learning leaders are investing in soft skills like adaptability, emotional intelligence, critical thinking, communication, and developing a growth mindset.
What’s hot? Skills-based learning for impact
College degrees may open doors, but skills keep businesses running. More and more, organizations are shifting from traditional credentials to a skills-based learning approach, ensuring employees develop the competencies needed for real-world success. Instead of checking boxes, companies are investing in upskilling programs that align with business goals, making learning more relevant, personalized, and impactful.
This approach benefits both employees and employers—workers can showcase their abilities beyond a résumé, and businesses can make smarter hiring and development decisions. With AI-powered skills tracking and with dynamic learning pathways, L&D teams are moving from outdated qualification models to agile, skills-first strategies that prepare the workforce for what’s next.
What’s not hot? Ignoring leadership development
Leadership isn’t a fixed trait. It’s a skill set that must be continuously refined. Future leaders need real-world experience, decision-making practice, and soft skills training—not just a crash course in management.
Yet too many organizations treat leadership development as a one-time event, offering a management training course or a leadership retreat and expecting long-term results. Instead of relying solely on formal courses, high-impact organizations provide current and aspiring and current leaders with a wide range of enrichment opportunities.
Like any other skill, good leadership requires ongoing learning, coaching, and mentoring. It requires real-world experience, and real-time feedback that helps people adapt to evolving business challenges.
What’s hot? Closely tying budget to success
Learning leaders who tie L&D investments to business results are securing their budgets—and their influence. Those who don’t will forever be seen as a cost center.
If you’re trying to show how learning contributes to productivity, innovation, employee retention, and overall company growth, traditional L&D metrics fall short. Smart organizations are investing in skill analytics and performance tracking, prioritizing clear data that links learning initiatives to key business outcomes.
What’s not hot? Random learning content dumps
Not all learning experiences are created equal. Random learning content dumps—massive, unorganized collections of articles, videos, PDFs, notes, and more—are often more overwhelming than helpful. While they might at first seem like a goldmine of knowledge, their lack of structure, curation, and context can make meaningful insights elusive.
Devoid of guidance or logical progression, these collections inspire frustrating scavenger hunts rather than effective learning experiences.
Are you ready for what’s next?
Today’s most innovative learning is skills-first—for employees and leaders. It’s human powered and AI enabled. And it’s measured more comprehensively than ever, to ensure it drives business success.
Is your business ready? Let’s find out together. Schedule a personalized one-on-one call with a Degreed expert today.
