HR plays a pivotal role in the success of AI within its organizations. These three underrated focus areas will create a competitive edge in the race to realizing the full potential of this technology and position HR as the strategic orchestrator of collective intelligence.
It’s time to say the quiet part out loud: Successful AI adoption hinges on HR.
When an HR function is highly effective at technology enablement, organizations are 1.6 times more likely to be higher performing at cost optimization, according to recent data from McLean & Company.
Organizations stand at a pivotal moment, where the promise of AI for efficiency and productivity is intersecting with the critical business imperative for ethical governance, thoughtful policy, and robust compliance.
AI is not just a new technology. It's a fundamental redefinition of how work gets done, how decisions are made, and, critically, how HR supports the entire business.
This isn't about replacing humans, or about HR needing to have all the answers. It's about recentering humans into their work, and freeing HR teams to go back to their roots and focus on the truly strategic aspects of their roles. Let's explore three critical areas where AI is reshaping the HR function, and how HR leaders can proactively lead the charge.
The rise of AI in the workplace is more than an IT or data science responsibility. It's a profound ethical and strategic challenge that HR leaders must champion. Integrating AI effectively means establishing a clear governance framework that aligns with an organization's values and overarching business strategy.
Because of the sheer scale of AI usage and profound implications, this is nothing short of a foundational requirement for responsible AI adoption.
For HR, this means moving beyond simply understanding AI's capabilities to actively shaping how it's used.
HR teams need to be at the forefront of the ethical AI frontier, establishing AI principles that guide development and deployment. This includes advocating for transparency in how AI systems make decisions, ensuring explainability so that employees and candidates understand AI-driven outcomes, and, perhaps most importantly, embedding human oversight at critical junctures.
In essence, HR needs to become the human conscience of AI implementation.
HR teams need to be at the forefront of the ethical AI frontier, establishing AI principles that guide development and deployment.
Just 7% of HR respondents reported having a formal, documented strategy for using AI in HR.
This highlights a significant gap that HR leaders are uniquely positioned to fill—and a strategic advantage for their organizations. By working cross-functionally with legal, IT, and other teams, HR leaders can help establish an internal AI ethics committee.
This group would work to define clear accountability structures for AI-assisted decisions, and ensure that human intervention and oversight remains the ultimate safeguard, especially in sensitive areas like hiring, performance management, or compensation.
At Workday, we call this “keeping humans in the loop.”
Integrating AI strategy with overall business strategy is a competitive advantage helping build a future-ready workforce. HR's role here is to connect the dots across the different platforms, business objectives, and teams it’s serving: How can AI support talent development to meet future skill demands? How can it enhance employee experience to boost engagement and retention?
Integrating AI strategy with overall business strategy is a competitive advantage helping build a future-ready workforce.
By asking these questions and embedding ethical considerations from step one, HR leaders ensure that AI adoption benefits the business's strategic goals and values, and serves its human workforce.
As AI becomes an increasingly common tool in daily work, HR's role in technology is evolving into actively shaping the rules for employees. This requires developing clear, practical policies that empower employees to leverage AI responsibly, effectively, and ethically.
Many employees are already using AI tools, often without formal guidance—signaling that workforces are outpacing HR teams when it comes to rules of engagement.
McKinsey recently reported that 48% of surveyed employees ranked training as the most important factor for generative AI adoption, and nearly half feel they are receiving moderate support or less. This gap underscores an urgent need for HR to own the responsibility of providing clarity, and satisfying employees' appetite for guidance.
When it comes to employees leveraging AI solutions, consider the everyday realities: How should employees handle confidential company data when interacting with generative AI? What are the privacy protocols required to safeguard sensitive company information? How should AI be used in customer interactions or in creating external communications?
These aren't abstract questions; they're strategic challenges. How leaders address them will separate the AI-empowered organizations from the AI-overwhelmed ones.
48% of surveyed employees ranked training as the most important factor for generative AI adoption, and nearly half feel they are receiving moderate support or less.
The productivity gains you capture, and how quickly you capture them, will determine which category your organization lands in.
HR can provide practical guidance by:
By crafting these policies and offering training, HR doesn't just manage risk; it actively enables a more productive, innovative, and ethically conscious workforce.
For HR leaders, successful AI adoption isn't a siloed effort—it's a symphony of collaboration.
HR, with its deep understanding of people and organizational dynamics, is uniquely positioned to orchestrate this collective intelligence. From the initial ideation of AI use cases to their ethical deployment and ongoing refinement, HR's ability to forge strong partnerships across the organization is paramount.
There’s often talk about "change management" in conversations surrounding AI, but it's more about “change leadership.” When different departments come together, bringing their unique perspectives to the table, the potential for innovative and responsible AI solutions multiplies exponentially.
Think about how much more robust an AI-driven talent acquisition tool becomes when HR partners with legal to ensure compliance, with IT to ensure data security, and with the hiring managers who will actually use the tool to ensure it meets their needs.
There’s often talk about "change management," in conversations surrounding AI, but it's more about “change leadership.”
This level of collaboration requires being OK not knowing it all, but creating connections and tapping into shared knowledge across your organization gets you that much closer.
To maximize the potential of AI through collaboration, HR can lead the charge by:
By proactively leading collaborative efforts, HR professionals don't just facilitate AI adoption—they transform it into a powerful force for collective intelligence and innovation, building a future where AI elevates human potential.
The evolution of work and AI’s impact is presenting just as many opportunities as it is questions, concerns, and added responsibility.
For HR leaders, one thing is certain: This is not a time to shy away if you don’t know the answer. It’s the time to radically lean in.
Through the right mix of governance, policies, and collaboration—and this mix will evolve as organizations learn what’s working and what isn’t—HR leaders will realize more strategic value for their function, organization, and employees.
How is your organization approaching the essential conversations around AI governance and policy today?
Over half (53%) of respondents in a recent study agreed that AI will augment human capabilities, leading to increased productivity and new forms of innovation. See how skills and AI are elevating human potential in this report.
As part of 2025's World Economic Forum Annual Meeting, Workday Chief People Officer Ashley Goldsmith discusses new research on the ways AI is elevating uniquely human skills. Learn how AI can elevate your organization's workforce and discover actionable insights.
More Reading
Small business HR teams often operate lean, but they face the same challenges as any enterprise when keeping pace with modern workforce demands. HR software built with SMBs in mind is the solution.
The HR function has become a source of strategic guidance for decisions in every part of the business. But the elevated role also comes with new challenges—learn how to solve them below.
HR has a vital mandate to move past automation and focus on the human implications of AI—specifically defining new skills, designing ethical partnerships, and ensuring a shared vision across the enterprise.