People Skills: Discover Talent Faster with Microsoft’s AI Innovation

Key insights

• People Skills is a new AI-powered skills inference engine from Microsoft, built into Microsoft 365 Copilot and Viva. It creates employee skill profiles automatically by analyzing data such as user profiles, email interactions, meeting transcripts, and document collaboration.


• The system uses a proprietary multi-agent LLM extraction model, mapping signals to a customizable taxonomy for a real-time view of workforce capabilities. This powers two main tools: the Skills Agent for leaders to build teams and analyze skill gaps, and Copilot Chat Integration, which helps employees discover expertise, learning paths, and mentors.


• Real-Time Talent Mapping keeps skill profiles updated as employees work on projects or training without manual entry. Leaders gain strategic insights into skill concentrations and readiness for AI-driven roles, while employees can edit their profiles and find growth opportunities.


• Technical foundation: The platform uses a three-layer structure—Data Layer (aggregates signals with privacy controls), AI Inference Layer (extracts skills from unstructured data using LLMs), and Application Layer (delivers insights through Copilot Chat, Viva Learning, and the Skills Agent interface).


• Main innovations: People Skills stands out by inferring abilities proactively from daily work instead of relying on self-reported or outdated HR records. Its context-aware AI integrates directly with productivity tools for relevant recommendations. Organizations can also customize the system’s taxonomy to match their specific needs.


• Availability: People Skills will be available globally to Microsoft 365 Copilot and Viva users starting May 2025. The advanced Skills Agent launches in June 2025, providing enhanced team-building

  Microsoft Unveils People Skills: A New Era of AI Talent Discovery

  On April 24, the consulting firm 2toLead spotlighted Microsoft’s latest AI-driven innovation in a recent YouTube video: People Skills. This powerful new tool, integrated with Microsoft 365 Copilot and Viva, aims to transform how organizations discover talent, close skill gaps, and empower their workforce. As digital transformation accelerates, companies are seeking smarter ways to identify expertise and foster employee growth. Microsoft’s People Skills could be a game-changer for HR technology, offering both leaders and staff new resources for managing and developing talent.

  The video, produced by 2toLead, provides a detailed overview of People Skills’ capabilities, its technical foundation, and the potential impact on organizations worldwide. Below, we break down the key takeaways and explore the opportunities and challenges that come with adopting this advanced AI solution.

  What Is People Skills?

  At its core, People Skills is an AI-powered engine designed to infer and map employee skills throughout an organization. Unlike traditional HR systems that rely on manual updates or self-reported data, People Skills uses signals from Microsoft 365 apps—such as Outlook, Teams, and SharePoint—to automatically generate dynamic skill profiles. It analyzes user activity, email exchanges, meeting transcripts, and collaborative projects, employing a proprietary multi-agent large language model (LLM) extraction method to understand the true breadth of employee abilities.

  This system enables two primary tools: the Skills Agent, which helps leaders build effective teams and analyze workforce gaps, and Copilot Chat Integration, allowing employees to find colleagues with specific expertise, chart upskilling paths, and connect with mentors. By embedding these features directly within daily workflows, Microsoft aims to make talent management seamless and data-driven.

  Key Advantages and Impact

  One of the standout benefits of People Skills is its ability to deliver real-time talent mapping. As employees participate in meetings, complete projects, or undergo training, their skill profiles update automatically, ensuring that leaders have access to the most current information without requiring manual input. This real-time approach can help organizations quickly identify and fill skill gaps, especially in fast-moving industries.

  Additionally, the system empowers employees to take charge of their own growth. They can edit their profiles, seek out new learning opportunities, and find coworkers with complementary skills. For leaders, the AI-driven analytics offer strategic insights into where skills are concentrated, regional disparities, and preparedness for future AI-driven roles. However, balancing the need for privacy and transparency remains a challenge, as organizations must ensure data is handled responsibly while maximizing the benefits of automation.

  Technical Foundation and Integration

  The strength of People Skills lies in its robust architecture, which consists of three main layers. First, the Data Layer securely aggregates signals from across Microsoft 365, with built-in privacy controls to protect sensitive information. Next, the AI Inference Layer leverages advanced LLMs to extract relevant skills from unstructured data, like meeting notes or document edits, and aligns them to either Microsoft’s default taxonomy or a custom framework provided by the organization.

  Finally, the Application Layer delivers actionable insights through familiar interfaces, including Copilot Chat, Viva Learning, and the standalone Skills Agent. This seamless integration with existing productivity tools gives People Skills an edge over standalone HR platforms, allowing recommendations and opportunities to surface naturally as employees work. Nevertheless, organizations will need to invest time in customizing taxonomies and training staff to fully realize these advantages.

  Revolutionary Changes and Tradeoffs

  Microsoft’s approach to talent discovery marks a significant departure from traditional HR methods. By proactively inferring skills from daily work rather than relying on outdated records, People Skills offers a more accurate and timely view of organizational capabilities. Its context-aware AI ensures recommendations are relevant and grounded in actual project needs, not just static profiles.

  However, this shift also introduces new complexities. Automating skill discovery can raise concerns about data accuracy and employee privacy. Moreover, while scalable customization is a major strength, it requires careful planning to ensure that imported taxonomies truly reflect organizational needs. Striking the right balance between automation, oversight, and personalization will be crucial for successful adoption.

  Availability and Industry Outlook

  According to 2toLead, People Skills will begin rolling out to Microsoft 365 Copilot and Viva users worldwide starting in May 2025, with the advanced Skills Agent features launching in June. As organizations look for ways to boost agility and readiness in an AI-driven future, embedding skills intelligence into daily workflows could provide a significant competitive edge.

  Industry analysts predict that Microsoft’s move will reshape the HR technology landscape, enabling better talent retention, faster upskilling, and more strategic workforce planning. Yet, as with any innovation, the real test will be how organizations navigate the tradeoffs between automation, privacy, and meaningful human connection in the workplace.

  

  Keywords

  Microsoft AI talent discovery people skills AI recruitment tool Microsoft hiring AI talent management AI-powered recruitment tools HR technology trends