Human resources leaders are being urged to step into a strategic role as co-leaders of artificial intelligence transformation, according to a new report that warns a widening readiness gap could undermine workplace innovation.
The HR Priorities 2026 Report, published by Academy to Innovate HR (AIHR), found that while 98% of organisations report increased urgency to deliver on AI, 91% are not fully prepared to build an AI-enabled culture. The findings suggest technology-led implementations are creating alignment challenges around people, culture, and trust.
Workforce readiness becomes make-or-break factor
Dr Marna van der Merwe, research and insights lead at AIHR, said AI’s biggest opportunities lie in how it reshapes people, culture, and work design.
“AI’s biggest opportunities lie in how it reshapes people, culture, and work design to improve employee experience, enhance personal productivity, and foster innovation,” van der Merwe said.
The report found 59% of organisations must demonstrate AI impact within the next 12 months, yet most initiatives continue to prioritise automation over workforce considerations.
Capacity gains present growth opportunity
The research shows AI could unlock more than 120 hours a year per employee, with an average productivity gain of about 30%. However, 86% of chief human resources officers said integrating digital labour is now a critical part of their role.
Dr Dieter Veldsman, chief scientist at AIHR, said how that extra capacity is used will shape long-term outcomes.
“Reinvesting AI-driven capacity is essential in shaping the future of work and organisational sustainability,” Veldsman said. “Ensure these gains fuel growth and meaningful opportunities for people, not just margin improvements.”
Skills-based approach gains urgency
The report points to a shift away from traditional headcount planning towards skills-based workforce strategies. Skills-based organisations are 63% more likely to achieve results and 52% more likely to innovate, according to Deloitte research.
Despite this, 77% of business and HR executives said the ability to move skills flexibly to work is critical to navigating future disruptions, while 73% of workers said skills-based practices would improve their work.
AI fluency gap persists
Only 35% of HR professionals said they feel ready to work with AI, with 61% reporting little to no AI involvement in HR processes. The report found 38% of HR professionals are upskilling through self-directed exploration of AI tools, pointing to fragmented learning approaches.
Erik van Vulpen, founder at AIHR, said HR can no longer operate as fragmented centres of excellence, and called for more integrated, cross-functional approaches to meet the demands of AI-enabled workplaces.