Beyond technology: HR leaders reimagine work, workforce, and workplace

CHROs are shifting from scattered AI experiments to a fundamental redesign of the talent supply chain

With AI moving from a theoretical disruptor to a day-to-day enabler, HR leaders are under increasing pressure from leadership to translate its potential into operational improvements and smarter resourcing. Despite widespread experimentation, fundamental changes to how work gets done remain elusive. There is a growing consensus that the focus should shift from simply automating tasks to modernizing the entire talent lifecycle.

First and foremost, strategic workforce planning is becoming more intentional and granular, with HR leaders closely examining which tasks can be automated or augmented. Yet, as highlighted by recent analyst predictions, decisions about workforce reductions and cost management are frequently made without providing HR with sufficient information to effectively redesign roles or clarify how work will change. This lack of transparency complicates efforts to align talent strategy with organizational needs. Some research outlets predict that a significant proportion of employees laid off due to AI-driven changes may need to be rehired, underscoring the importance of thoughtful workforce planning that anticipates both immediate efficiencies and future requirements.

Second, translating skills into execution remains a complex challenge for HR leaders, who find that skills-based models and updated job architecture alone are not enough to drive meaningful behavioral change. While AI is making its mark at the task level, the transformation of entire roles is rare. Instead, the emerging concept of "talent velocity" is gaining currency, underscoring the importance of quickly matching skills to shifting business needs. Rather than relying on static job descriptions or traditional talent management approaches, talent velocity focuses on dynamic skills mapping and rapid redeployment to address emerging priorities such as market changes and technological advancements.

According to the CHRO of a leading recruiting firm, “A robust skill taxonomy is foundational to deploying talent across functions.” In this context, market success and retention require targeted coaching and mentoring, enabling leaders to clarify what skills are required, locate them internally or externally, and manage skill development at pace. The rapid obsolescence of technical skills adds another layer of urgency, with various research outlets predicting that the half-life of technical skills will likely shrink by a material percentage in the near future.

Third, in talent acquisition, leaders are moving from filling roles to building a future-ready pipeline. A financial services CHRO describes how their firm is using AI to assist with resume and interview screening—while deliberately keeping a human in the loop—and leveraging internal data platforms to reduce external spend on search firms.

These realities set the stage for the dual mandate facing HR: not only must leaders build a future-ready workforce, but they must also transform their own core functions to support ongoing modernization. The role of HR is rapidly evolving from a traditional administrative function to a strategic partner in shaping organizational capability. The inflection point is shared ownership. In organizations that are making progress, HR is no longer reacting to workforce decisions; it is helping to shape them, with a point of view around how the talent supply chain will need to adapt as work is decomposed, redeployed, and rebuilt.

Increasingly, HR is taking ownership of workforce planning, establishing itself as a central hub and working collaboratively with IT and business functions to ensure that talent strategies are aligned with technological advancement and ongoing modernization. According to Katie Dahler, Human Capital Advisory Leader, KPMG US: “These partnerships are not one-time initiatives but continuous processes, with HR leading efforts to build a future-ready workforce and leverage AI for long-term organizational resilience.” Reflecting this shift, some leaders are considering renaming the HR function to better capture its expanded mandate—moving toward titles such as “Workforce Solutions” to emphasize its strategic and transformative role in the enterprise.

“While they want everyone to find efficiencies, there’s a skill gap around how people can effectively leverage AI and change how they do work.” Financial services CHRO

For AI-driven transformation to succeed, CHROs are finding they must first drive a cultural shift from the top of the organization down

While AI presents a powerful toolkit for innovation, its adoption hinges entirely on the human element. HR leaders are recognizing that, without a profound cultural shift, technology investments will fail to deliver value. The core challenge lies in moving from a traditional, top-down management style to one rooted in workforce empowerment and psychological safety. As Edwige Sacco, Head of Workforce Innovation at KPMG LLP, notes: “Psychological safety is not about comfort: it’s about speed, learning, and execution in environments where no one has all the answers.” One CHRO built on this sentiment by stating that the real work is "changing behaviors, not just deploying technology."

In many cases, the critical bottleneck is middle management, which is often stuck in established routines and threatened by AI's potential. To thaw this resistance, leaders are finding early adopters and turning them into internal evangelists. One CHRO described how their firm created a powerful "storytelling engine," celebrating employees who used AI to achieve significant time savings. This peer-to-peer validation proves the value of new tools in a way that top-down communication cannot.

At the same time, lasting cultural change requires a fundamental redefinition of leadership. The consensus is that leaders must evolve from directors to coaches who are comfortable not having all the answers. This shift is critical for creating an environment where employees feel safe to experiment. The most effective change initiatives are explicitly leader-led; when senior business leaders co-lead training sessions and demonstrate how they are using new tools, AI engagement tends to skyrocket.

Crucially, creating a "safe-to-fail" environment does not mean an absence of accountability. As one participant clarified, it means having a rigorous process for experimentation. When a project doesn't meet its goals, the focus should be on celebrating the learnings, not punishing the attempt. To make this cultural shift stick, organizations tie new behaviors directly to performance management. “Technology and taxonomies are not enough,” says Edwige Sacco, Head of Workforce Innovation, KPMG LLP. “Success with AI requires a profound cultural shift, including new recognition and rewards systems and incentives that are tied to the value that is actually created in modern work models.” 

"Employee stories about how AI is elevating the work they do are more powerful than any corporate mandate." CHRO of a leading corporation

To ensure their organizations are future ready, CHROs are seeking talent with strong creative and relational capabilities 

The long-established model of seasonal campus recruiting is proving ineffective for the new generation of talent raised in the digital era. CHROs report a fundamental disconnect, with old methods failing to capture the attention of candidates who have different expectations than their predecessors. “We used to show up on campus and get a flood of applicants," said one CHRO. "Now, the old playbook is obsolete.”

In response, leaders are shifting to an "always-on" engagement model that begins long before a student's final year. This means meeting talent where they are—on digital platforms and through experiential learning. Some are using AI to personalize outreach based on a candidate's public portfolio, increasing response rates noticeably. The focus is also shifting from "where did you go to school?" to "what can you do?" This shift from pedigree to demonstrated skills has opened the door to a wider talent pool through apprenticeships and other alternative pathways.

To get a better signal on actual skills, some CHROs are replacing the standard application process with gamified challenges and hackathons where candidates can showcase their abilities by solving real-world business problems. "We recognize that we can't focus on every single skill,” said Edwige Sacco, KPMG LLP. “Instead, our strategy is to identify what matters more: 'learning fitness.' We're looking for the core attributes that indicate someone has the initiative to upskill themselves at the speed our business demands.”

These strategic hiring shifts are also about messaging. Today's early-career professionals are driven by purpose and vet companies based on mission and potential for impact. However, even with the right message, the final stages of the hiring process depend heavily on human connection. As one CHRO noted, the quality of a candidate's interaction with their potential hiring manager is the single biggest factor in offer acceptance. This has led to a new focus on training managers to be better interviewers and storytellers. The work doesn't stop at the offer letter; to combat early attrition, CHROs are also redesigning the first 90 days of a new hire into an immersive experience with dedicated mentors and clear first-win projects to improve retention significantly.

Early-career talent is where future workforce models either take hold or fail. If organizations don’t redesign how they hire, onboard, and develop early talent now, they will simply scale today’s problems faster.

"At KPMG, we assess campus hires before they join to identify individual strengths and gaps so we can design personalized learning paths tailored to their backgrounds. This strategy not only helps fill critical skill gaps but also supports longer retention by ensuring our early-career professionals are set up for career growth within the firm,” said Sandra Torchia, Vice Chair of Talent & Culture, KPMG US.