Are HR leaders ready to support AI in the workforce?

HR’s close collaboration with other digital leaders across the organization is key to shaping a sustainable and high-value AI strategy because of their understanding of workforce impacts and talent strategies. Consider asking your HR leaders:

• How would they support organizational change alongside AI?
• How would they evaluate AI's impact and improve productivity?
• How would they engage employees about AI while fostering a culture of trust and learning?

During our coffee chat with Helen Davies, KPMG asked TD Bank the same.

For TD Bank, HR is integral to the AI conversation. The bank has used AI and machine learning for over a decade, running hundreds of models that assist customers and employees, from credit decisions to fraud detection.

However, the emergence of generative AI presents a new set of challenges and TD is tackling this by experimenting with generative AI through a cross-functional approach that includes HR.

"HR needs to engage with leaders in the business to understand what's most important,” says Helen. This collaborative effort can help tailor AI strategies that align with organizational goals. Moreover, Helen highlights, “What we’ve learned is that AI doesn’t necessarily take jobs away," she adds, "AI helps companies make better decisions.”

In a poll, we asked our DX Coffee Chat audience if their HR function is ready to support workforce transformation through AI. Only 10% reported being ‘ready’ or ‘very ready,’ while 35% indicated they were somewhat ready, and 29% stated they were not ready at all. Another 24% were unsure.

Nonetheless, HR leaders are eager to learn how to leverage generative AI and deliver business value. Here are key takeaways on how AI is reshaping the workforce for HR and digital leaders.

 The true potential of AI can only be realized if organizations consider the ‘people and change’ aspect of their deployments. “Concerns around automation, especially generative AI, create unique adoption challenges,” says Megan. It’s rare to embed a technology in business operations that is so widely discussed in public culture—employees will bring those preconceived views to work. “HR needs to get ahead of the message by clearly communicating how the organization plans to use AI and be open about changes, which will go a long way in calming any nervousness about job security and other concerns.”

 Action: Work early and closely with business leaders to address workforce needs and concerns. Get, ahead of the rumors with clear messaging about AI in your organization.

“We’re about to disrupt the traditional hierarchy of work,” says Helen. If generative AI can write basic code and take over testing, what happens to entry-level jobs that teach engineers to code? These roles are essential for career advancement and taking on more sophisticated work. Deploying AI means rethinking pathways to develop professionals who are ready for higher-magnitude, more complex work.

Action: Review current career pathways and develop a perspective on how they will need to change when ‘entry-level’ activities can be completed by AI. Consider how you will provide experiences or upskilling activities to enable early career development to rapidly progress talent to the next level.

Generative AI can reduce mundane tasks, allowing more time for creative work. However, this shift has implications. “I enjoy some mundane tasks because they provide relief from harder tasks,” says Helen. For example, generative AI can summarize meetings and send follow-up emails. But what if these tasks offer a mental break for employees?

Organizations must consider realistic workloads and avoid adding pressure when redesigning workflows.

Action: Be intentional in the design of work in an AI-enabled environment, considering the need to balance intensive, focused strategic work with time to recharge.

In another poll, nearly half (40%) of respondents indicated that HR is not involved in their organization’s AI transformation. Collaboration across HR, IT, and Operations is critical. Megan noted, "This will keep legacy organizations competitive with AI-native ones."

HR leaders can identify AI opportunities and lead conversations about workforce impacts, from redesigning workflows to removing friction. Redesigning organizations around AI is significant, making HR's involvement essential.