The workplace is evolving rapidly, with artificial intelligence (AI) driving this transformation at its core. As companies adopt generative AI and other smart technologies, the role of the CHRO (Chief Human Resources Officer) is shifting in exciting ways. No longer just focused on managing people, the CHRO is becoming a key player in leading AI initiatives. But is your CHRO ready to think this way? This article explores how the role of CHRO is evolving, why leadership in the AI age matters, and how your CHRO can steer your organization into the future.
The Changing World of Work and AI
Today, businesses rely on a mix of humans and machines to get things done. From generative AI creating reports to predictive tools helping with decisions, this teamwork is growing stronger. Beena Ammanath, a leader at Deloitte's AI Institute, explains that this blend of people and technology is reshaping how companies operate. Traditionally, IT handled tech, while HR managed the workforce. However, with AI now integrated everywhere, this traditional division no longer works effectively.
The big question is: who will manage all these AI tools? With demand for AI experts like data scientists outpacing supply, someone needs to step in. This is where the CHRO comes in. With skills in managing people, the CHRO can apply similar principles to oversee AI , making them a natural fit. This shift is crucial as AI use cases, think chatbots for customer service or tools predicting turnover, spread across every part of a business.
Why the CHRO Should Think Like a Chief AI Officer
The role of CHRO is expanding beyond hiring and training to include managing the "cognitive workforce", the AI systems working alongside humans. Ian Cook points out that AI isn't just a tech issue; it's a people issue. For example, research from NBER shows generative AI increased call center productivity by 14%, reduced escalations, and lowered turnover. These gains come from improving how people work with AI, not replacing them.
The CHRO is perfect for this role because they understand people's needs and can bridge the gap between humans and machines. Whether it's ensuring AI tools are used responsibly or aligning them with business goals, the CHRO's leadership can make AI success. Companies can't afford to leave this to IT alone.
Key Responsibilities of the CHRO as a Chief AI Officer
So, what does it look like when a CHRO thinks like a Chief AI Officer? Here are the main areas where they can lead:
1. Managing AI Performance
Just like employees, AI tools need regular check-ins. The CHRO can oversee performance evaluations to see if an AI tool is delivering value. For instance, is a recruitment AI finding the right candidates ? The CHRO can gather feedback from users, measure outcomes, and share insights with tech teams. This ensures AI stays effective and meets business needs.
2. Improving AI Through Feedback
AI doesn't come fully polished and ready to use right away. The CHRO can act as a feedback hub, collecting input from employees on how AI tools work in practice. For example, if a supply chain AI misses key trends, the CHRO can relay this to data scientists, who can then tweak the model. This practical feedback is vital since tech experts may not know the day-to-day challenges of different departments.
3. Deciding AI's Lifespan
Every AI tool has a shelf life. The CHRO can decide when a model should be retired based on its usefulness and performance. As AI use grows across teams, this role becomes critical to avoid cluttering the system with outdated tools. The CHRO's experience with workforce planning helps them judge when it's time to move on.
4. Building a Human + AI Workforce
The CHRO must redesign jobs to blend human and AI strengths. Generative AI helps new employees learn faster, enhancing their productivity, while top performers might find it distracting. The CHRO can create roles where AI supports beginners and humans handle complex tasks, balancing the team's skills.
5. Training People and AI Together
Training isn't just for employees anymore. The CHRO can lead efforts to train both people and AI. For example, to teach an AI to manage projects, HR can provide data on tasks and work with experts to validate its skills. This dual focus ensures AI and humans grow together, as highlighted by IBM's insights on CHROs shaping the future workforce.
Challenges for CHRO Leadership
Introducing generative AI brings unique challenges that the CHRO must address. Ian Cook raises important questions: Should top performers be rewarded for data used to train AI? If not, they might leave, hurting AI's future. If AI levels the playing field by sharing expert practices, how do you motivate high achievers? And if an AI-guided employee fails, who's responsible, the person or the tool?
These issues show why the CHRO's leadership is essential. They need to design fair reward systems, support supervisors adapting to AI, and ensure employees feel valued. This human perspective is what sets the CHRO apart from IT, making them the right leader for AI integration.
How CHROs Can Lead with Generative AI
The role of CHRO in the AI era goes beyond management; it's about creating a culture ready for change. Here's how they can lead:
Foster a Growth Mindset : CHROs can encourage learning about AI, helping employees use it effectively. For instance, teaching staff to prompt generative AI for different audiences, executives vs. beginners, builds confidence and skill.
Orchestrate the Workforce : By redesigning jobs to mix human and AI tasks, CHROs can maximize both strengths. This might mean using AI for routine work and humans for creative problem-solving.
Train for the Future : CHROs can develop skills roadmaps, training employees on AI tools while ensuring AI itself is trained with quality data. This dual approach keeps the workforce competitive.
Beena Ammanath emphasizes that AI management is an enterprise-wide effort. The CHRO can set up AI advisory boards and clarify roles, ensuring everyone knows their part. This leadership helps companies use AI responsibly and effectively.
How to Spot an AI-Ready CHRO?
How can you tell if your CHRO is prepared to lead? Look for these signs:
They're involved in AI strategy meetings, not just HR plans.
They're gathering feedback on AI tools from across the company.
They're training teams on generative AI and rethinking job roles.
They're addressing AI-related people issues, like fairness in rewards.
If your CHRO is focused only on traditional HR tasks, they might need support to adapt. Encouraging collaboration with IT and providing AI training can help them grow into this new role.
Challenges and How to Overcome Them
The transition isn't easy. CHROs might lack tech expertise or face resistance from employees wary of AI. To overcome this:
Build Skills : Offer AI workshops to enhance the CHRO's technical knowledge.
Communicate Benefits : Show how generative AI improves work, like faster task completion, to win team support.
Partner with IT : Work closely with tech leaders to share responsibilities and learn from each other.
IBM's research shows 60% of CEOs see AI as a competitive edge, putting pressure on CHROs to lead. With the right support, they can turn challenges into opportunities.
Real-World Scenarios
The following examples show how CHROs are using AI to improve their companies. Here are some real cases to learn from.
Unilever's CHRO Leading AI
Unilever's CHRO worked with IT to use AI for talent management, analyzing employee data to predict turnover. They trained staff to work with AI tools, improving retention by 10% in two years.
Moderna's CHRO Integrating Tech with HR
Moderna merged its technology and HR departments, elevating Tracey Franklin from CHRO to Chief People and Digital Technology Officer. She now oversees AI systems, more than 3,000 customized GPT agents, handling everything from HR inquiries to performance management workflows. This shift has transformed how technology and HR function together.
IBM's CHRO and the AskHR Chatbot
At IBM, CHRO Nickle LaMoreaux introduced "AskHR," an AI chatbot that now handles 94% of routine HR queries, around 10.1 million interactions yearly. Early resistance from employees dropped satisfaction scores sharply, but improvements guided by user feedback turned the experience around, bringing satisfaction back to the +80 range.
The Future of CHRO Leadership in AI
As generative AI grows, the role of CHRO will keep evolving. Companies that empower their CHRO to act like a Chief AI Officer will stay ahead. This means investing in their leadership skills, integrating AI into HR strategies, and building a workforce ready for the future. Whoever embraces this shift can drive innovation, improve productivity, and create a workplace where humans and AI thrive together.
Conclusion
The CHRO is evolving from a traditional people manager into a vital Chief AI Officer. By taking charge of AI performance, gathering critical feedback, and shaping a workforce that blends human and machine strengths, they can ensure generative AI drives success for both employees and the business. Is your CHRO prepared to lead this transformation? With the right mindset, training, and support, they can steer your company toward a thriving AI-powered future. Start by encouraging their leadership in AI today!