Reskilling human capital in the AI era: a human-centric conceptual ‘spider web’ model of knowledge and technology integration

Artificial intelligence (AI) is reshaping human capital, yet its broader developmental implications remain insufficiently explored. This study examines how AI readiness and knowledge diffusion contribute to human capital outcomes in 68 upper-middle-income countries, using the Human Capital Index (HCI) as the dependent variable. Employing multiple regression analysis alongside a conceptual ‘spider web’ model of reskilling, the study finds that both AI governance readiness and knowledge and technology outputs are positively associated with higher levels of education, skills, and workforce productivity. These results confirm that digital and innovation capacities are central drivers of human development. The findings imply that policies fostering reskilling, lifelong learning, inclusive digital infrastructure, and robust innovation ecosystems are essential to maximize the societal benefits of AI. The paper contributes to the literature by integrating empirical evidence with a novel conceptual model, offering actionable insights for governments and institutions seeking to align technological progress with sustainable and inclusive human capital development.