The adoption of generative AI in the workplace is poised to disrupt various industries in the coming decade, requiring CHROs and their teams to navigate significant transformations, as outlined in a report from the Society for Human Resource Management (SHRM) and The Burning Glass Institute.
Notably, industries such as finance and insurance, professional services, and information systems are expected to experience the most profound changes due to generative AI adoption. These disruptions may result in considerable human costs, particularly for companies heavily reliant on at-risk roles.
Reskilling will emerge as a crucial strategy to address evolving job roles and skill requirements. Traditional positions, such as customer service roles, may transition towards managing chatbots or overseeing automated processes, necessitating training initiatives to bridge skill gaps.
Moreover, concerns about the digital divide in access to technology highlight potential implications for organizations’ inclusion, equity, and diversity efforts. HR functions will experience significant impacts across various domains:
- Talent acquisition may face challenges in recruiting AI talent initially, with shifting difficulty levels in filling different roles over time.
- Changes in labour force dynamics will involve shifts away from automated tasks towards AI-augmented responsibilities.
- Learning and development efforts will prioritize reskilling existing talent for AI roles and transitioning workers to eliminated positions.
- Compensation structures will need adjustments to reflect changes in the labour market, particularly in roles incorporating AI-related skills.
- Diversity, equity, and inclusion considerations will require CHROs to mitigate disproportionate impacts on underrepresented groups and ensure equitable access to new opportunities.
HR leaders must adopt nuanced downsizing strategies to minimize disruptions to employees amidst workforce transformations. Research suggests that by 2032, generative AI could significantly alter half of all jobs, potentially displacing 9% of the current U.S. workforce.
While AI has spurred job growth in certain areas, uncertainties remain regarding its long-term impact on employment. Notably, mid-career professionals and managers face heightened exposure to AI-related disruptions, emphasizing the need for proactive workforce planning and reskilling initiatives to navigate the evolving job landscape effectively.