Editorial
We are on the brink of a human renaissance driven by AI. This renaissance has the potential to create unprecedented innovation and creativity in our workforce. AI will reshape how work is done through automation, augmentation, extension and generation — making us faster and more effective — and creating capacity to focus on uniquely human skills. Every role within the enterprise will be touched by AI, which is why leaders are getting on board and developing action plans to address and implement AI.
In fact, a report by our team shows that 65% of chief human resources officers (CHROs) believe AI will fundamentally change how work is performed. This view is supported by an EY study that asked 1,200 CEOs if they will invest in GenAI — 100% said yes. This is not the boat we want to miss.
HR Leaders Are Central to This Transformation
In this new era, the role of HR leaders is evolving into a strategic advisor who partners with the C-suite to drive this transformational change. We have an opportunity to not only drive the people strategy forward, but also influence the tech and business strategy. Our voice is crucial across several dimensions of AI, including:
- AI skills and enablement: Helping employees understand and embrace AI, reskilling/upskilling when necessary and hiring the skill sets needed to support our AI strategy
- HR AI implementation: Leveraging AI to make HR organizations more efficient and effective
- Responsible AI: Ensuring AI implementation is done responsibly across all functions/use cases (e.g., free from bias).
- Culture: Steward the culture that can embrace this transformational change without losing the organization's values
Leaders who lean into each of these areas will be the ones to win long-term.
Data: The Foundation of the AI Era
While data has always been an essential tool for HR, its importance only grows with the increasing relevance and implementation of AI. By collecting and analyzing vast amounts of data, HR leaders can gain insights, allowing them to make strategic decisions that enhance organizational performance. This data-driven approach continues to transform how HR teams understand employees, predict their needs and equip them with personalized tools and insights to propel the organization forward.
Skills data is a wonderful example of this. Capturing high-quality skills data will supercharge many AI use cases in HR. If you have data on the skills your organization has and needs and what skills are available in the market, you can better align your talent strategy to your business strategy. By leveraging AI and analytics, HR teams can gain a comprehensive understanding of their current workforce's skills and identify areas for growth that align with what the business needs to accomplish. This approach ensures employees are equipped with personalized plans to achieve their career goals and the employer has the necessary skills to execute their business strategy. This is an amazing example of how data and AI can create tangible value for both employees and the enterprise simultaneously.
With this great power comes great responsibility. Leveraging data and AI must be done responsibly. Organizations that struggle to keep data clean will face massive roadblocks and challenges. Having high-quality data and AI that is governed and secure will be every function’s responsibility, not just IT. Data governance, security and architecture will be increasingly visible and important skills needed by HR functions. HR leaders need to invest in developing and hiring these skill sets in their organization to set themselves up for success.
Unlocking Capacity and Creativity with AI
AI will significantly increase employees' capacity to focus on uniquely human work by automating mundane tasks and augmenting more complex work. This shift not only improves efficiency, but also promotes innovation and allows employees to focus on more meaningful work. The newly created capacity can then be reallocated to directly support key business initiatives and innovation, leading to better margins and new revenue streams. The result is a more dynamic and engaged workforce, better positioned to drive organizational success.
Again, skills play a key role here. Doing this successfully as an HR leader requires a firm understanding of the skills your organization has, so you can upskill, reskill and redeploy talent to drive the business forward. In close partnership with other members of the C-suite, HR leaders need to adopt a skills-based approach, leveraging AI and data to transform workforce management.
Achieving the Full Value of AI Comes From a Winning Talent Strategy
Most experts agree that AI will augment work much more often than it will replace jobs, meaning people will remain central to how work gets done. However, AI will create additional capacity: I believe around 10%-20% for most organizations over the next three to five years. It’s crucial to address the people components of this transformation, ensuring AI not only enhances efficiency, but also works in tandem with human talent to drive meaningful results.
As leaders, it’s our job to build policies, best practices and guidance to help teams successfully use AI. We must build a culture of trust, transparency and training to deliver value from AI, and we must redeploy the capacity we create to the most important business challenges.
The transformative role of AI in HR is undeniable. From scaling and personalizing insights to empowering HR leaders to unlock creativity and capacity, AI is redefining the future of work and the role of HR leaders. As we move forward, it is imperative for HR leaders to embrace AI, harness its potential and lead their organizations into a new era of excellence. The key to unlocking the full value of AI is a winning talent strategy, not just a technology strategy. The future of HR is bright, and AI is at the forefront of this transformation.
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