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AI Is Changing Which Functions Matter Most and HR Is Rising Fast

Jen Taylor Jen Taylor
Most organizations treat AI as a technology rollout, but lasting success depends on people, not tools. Learn why HR is becoming central to AI literacy,...

Most organizations have approached AI like a tech rollout: buy the licenses, stand up the infrastructure, introduce the tools, and train the employees. The assumption? If the technology is available, adoption will follow.

But some organizations recognize that AI is not a software implementation, but rather, a workforce transformation. It changes how work gets done, how teams operate, how decisions are made, and what employees need to succeed. That shift changes who owns the conversation.

The Wall Street Journal reports that as companies rethink work in the age of AI, the most pressing challenges are often not technical. They are organizational, behavioral, and cultural: helping employees adapt, redesigning workflows, building trust, and creating clarity around new ways of working. Increasingly, that work is pulling HR and technology leaders into a much closer partnership.

We see HR’s influence growing fastest in helping employees build confidence using AI (AI literacy), driving meaningful adoption (AI adoption), and establishing the guardrails organizations need to scale AI responsibly (AI governance).

AI Is an Organizational Challenge 

The idea that AI is primarily an IT initiative is becoming harder to defend. Many organizations are discovering that AI deployment is not where the real difficulty lies. It’s what happens after deployment that determines success.

Early AI efforts often stall – not because the technology fails – but because organizations struggle to integrate it into how work actually gets done. Employees are unsure how AI fits into their workflows, managers lack clarity on expectations, and cross-functional alignment is inconsistent.

Boston Consulting Group highlights that the greatest barriers to realizing value from AI are organizational (e.g., skill gaps, workforce readiness, cross-functional coordination challenges). In BCG’s transformation model, only 10% of AI value comes from the algorithms themselves, while 70% comes from changes to people, processes, and organizational behavior.

That shift has significant implications. AI success is determined by how effectively organizations prepare their workforce and structure their operating model around it. That makes AI transformation a people and organizational challenge that HR should be tackling head-on.

AI Literacy: HR’s Role in AI Training

AI literacy does not mean every employee becomes a prompt engineer. It means employees understand what AI tools do, where they are reliable, where they are not, and how to use them effectively in daily work. Without that foundation, adoption becomes uneven and value remains fragmented.

Harvard Business Review has noted that AI literacy and integration into daily workflows are becoming critical determinants of successful AI adoption. However, the gap between investment and capability is already visible. IBM research finds that nearly half of executives say their workforce lacks the skills needed to implement AI at scale, highlighting a widespread AI skills gap that limits organizational readiness.

Gartner reinforces this from a performance perspective: AI literacy (e.g., employee skills, trust, real-world usage) is a critical driver of ROI, and organizations frequently fall short because employees cannot effectively translate AI usage into business outcomes.

This is where HR’s role becomes operational. Building employee AI fluency requires continuous structured learning pathways, onboarding integration, performance reinforcement, and upskilling across both knowledge and frontline roles. 

Just as importantly, HR needs organizational visibility into where capability is developing and where it is lagging. You can use learning management tools to track AI training and even map AI skills on your org chart to see how AI knowledge is permeating your organization.

As AI fluency becomes a core workforce capability, it becomes HR’s role to train their workforce for this change, track skill levels, and keep an eye on where the organization is excelling or lacking AI skills.

AI Adoption: The Organizational Reality Check

Deploying AI tools and actually achieving adoption are two very different things. Many organizations are discovering that access to AI does not guarantee meaningful usage. Employees may experiment with tools, use them inconsistently, or avoid them altogether if expectations, incentives, and workflows are unclear.

License utilization is not adoption. Neither is occasional or surface-level use. Real adoption is sustained behavioral change: AI becomes embedded in how work gets done, how decisions are made, and how output is produced. That shift does not happen through deployment alone. It requires deliberate change management.

To fully implement an AI change management campaign, HR must start with a baseline understanding of their organizational structure, reporting lines, and accountability structure. Then, they must ensure that managers have a clear way to structure their teams to reinforce new behaviors around AI and provide support. 

It is only with thoughtful organizational management that AI has the potential to go from an occasionally used tool to full adoption that can influence the success of your organization. 

AI Governance: A Structural Challenge, Not a Compliance Checkbox

Once AI is implemented at an organization, HR must also be involved in its governance to ensure policies are people-forward. 

Currently, AI governance is often treated as a legal or IT concern, focused on data privacy, risk management, and infrastructure security. But when governance is owned exclusively by legal or IT, it tends to produce policies that are technically correct but difficult to apply in real working environments.

Effective AI governance is not just about rules. It is about how those rules show up in day-to-day behavior: how employees make decisions under pressure, how teams interpret guidelines, and how organizational culture shapes what people actually do (versus what is written in policy). 

That is fundamentally a people and organizational challenge, and HR must inevitably work in close partnership with IT and legal to address AI governance

In fact, we are already seeing new AI roles emerge to address this gap (e.g., AI Ethics Leads, AI Governance Managers, Workforce AI Strategists), with HR leading the initiative to identify, hire, and place these roles. 

Finally, as the structure of AI governance takes shape at an organization, HR must keep close tabs on how AI is impacting team performance, constantly evaluating if the policies put in place are positively impacting employees, team structures, and overall company performance. 

AI Transformation Requires a Clear View of the Workforce

As HR is increasingly becoming a key owner of AI literacy, adoption, and governance, they need tools that give them an accurate view of their workforce. However, many HR teams are still stuck making workforce decisions based on incomplete, fragmented, or outdated information in manual tools.

You cannot build AI capability across a workforce you cannot see clearly. You cannot design governance structures around organizational realities that are not visible in real time. And, you cannot drive AI adoption at scale while relying on static snapshots of headcount and skills.

HR leaders who can see how work is actually distributed are positioned to be able to identify where AI can make the most impact at their organizations, help shape their teams and management structures to ensure adoption and compliance, and ultimately see positive results from AI adoption. 

AI Is Moving HR into the Operating Core

AI is giving HR leaders the opportunity to step into a more strategic role and truly shape the future of their organizations.

Ultimately, organizations that navigate AI transformation most effectively will not necessarily be the ones that move fastest on technology. They will be the ones whothe recognize early that transformation is a people problem and will structure their organizations accordingly.

That means investing in AI literacy as a workforce competency, not an optional training layer. It means treating adoption as a change management discipline, not a rollout milestone. It means building governance structures that reflect how work actually gets done, not just how policy is written. And it means giving HR the workforce visibility needed to connect all of these elements.

Together, these shifts redefine what HR is being asked to do inside the organization – no longer as a supporting function to transformation, but as a core driver of success.