From CEO Whisperer to AI Wrangler: The CHRO's Wild Ride into the Future of Work

CHROs are no strangers to change. After all, their role shifted from administrative guru to strategic CEO whisperer in less than a decade.

Today, the demands on a CHRO are immense. Recruitment and retention processes are becoming gamified, talent gaps are becoming more acute, and they are asked to implement flexible hiring.

Now, as AI becomes ingrained in corporate life, CHROs are facing a new frontier—one that demands agility, resilience, and a whole lot of tech savvy. Yet, it might also offer a chance for the CHROs to become strategic and make work more meaningful.

Decoding the CHRO AI factor

AI isn't just about automating tasks anymore. It's about fundamentally changing how we approach talent management. One area where CHROs are leaning toward AI is driving a skill-based approach.

A Deloitte study, “Generative AI and the Future of Work,” noted that skills-based organizations were 107% more likely to place talent effectively. Besides the major street cred as a workplace to grow and develop (a major millennial and Gen Z ask), the study notes that 98% of organizations are more likely to retain high performers. That adds talent resilience when talent scarcity is reaching an all-time high.

The Deloitte report further notes that AI can go deeper — it can change what we consider “work.” In the past, to perform a specific task, you needed certain skills and knowledge. Automation (especially AI-driven ones) removed the unskilled portion inside companies.

However, Deloitte sees the entry of Generative AI (GenAI) and machine learning as redefining the idea of work. The consulting group sees work as the outcome created by leveraging human capabilities and the tools they have invented to help accomplish the goal.

But for CHROs, it also creates new questions: So what if your AI assistant already has a certain level of competency in knowledge and skills? Is being adept at prompting pre-trained AI assistants to do the tasks more accurately critical than experience?

There are no concrete answers to such questions as of yet. However, Deloitte argues in its report that CHROs should not overlook human skills just because they have skilled AI assistants. This does allow CHROs to foster human skills in other areas that machines are bad at — emotional intelligence, critical thinking, leadership, and complex problem-solving.

What’s also certain is that these factors will shape the roles of the CHROs and company leadership. Deloitte notes that this is one reason companies are now calling for a framework that “focuses on and supports leadership’s vital role in guiding GenAI-induced changes.”

Closing the gender gaps

The issue of pay equity remains a persistent challenge for HR leaders. Despite progress, women continue to face disparities in compensation and career advancement

That becomes a challenge when women are active participants in all functions. The World Economic Forum says 41.9% of global workers are women, while the American Association of University Women only 7.2% are women and, in general, are paid 16% less.

ADP research feels these gaps are closing, with GenZ women making 92% of what their male counterparts do. Still, the disparity remains, especially in this part of the world.

There are many reasons why this disparity persists despite the continued focus on DEI. Gendered language (when hiring), unconscious bias, and access to resources along with cultural prejudice and biased leadership.

GenAI can help, and companies like ADP use it to build what they call “responsible” HR innovations in critical functions like payroll. By democratizing knowledge and skills training, it can level the playing field while being blind to cultural and gender biases in the workplace. 

It can also be a two-way street. CHROs can learn where the gaps lie, where their multi-gender workforce is excelling and where they are fraying, and customize their programs and campaigns. It can also highlight gaps in pay parity and other areas CHROs can note and address.

But GenAI is no silver bullet. In the ADP article “Influence and Insight: The Impact of Data and Generative AI for Women in the Workforce,” women must advocate for inclusive AI. This requires them to monitor and work closely with ModelOps teams to weed out biases (inherent in all pre-trained models).

Making models more explainable is one way to go, as this will make the inner workings more transparent — an issue that HR departments need to address quickly before lawsuits appear.

Enriching development

Learning and development (L&D) is another area where AI makes waves. As organizations move from traditional career ladders towards more flexible lattice models, CHROs are turning to AI to create personalized learning experiences that empower employees to chart their career paths.

The Lepaya State of Skills Report 2024 notes that AI offers two advantages. First, it allows CHROs to make sense of the data and map qualifications, capabilities and experiences across different HR systems, surveys, performance reviews, and training records. This mesh of qualitative and quantitative data will allow CHROs and HR departments to define KPIs and L&D objectives, such as skill proficiency, employee engagement and career progression. These can become the metrics to measure how well the AI-driven interventions work, allowing CHROs to recalibrate quickly if market demands change.

AI outshines current technology in making learning personalized. In the survey, more than 50% of learning leaders saw AI mentors as crucial for “continuous career guidance.” Other vital benefits include automated skills gap analysis and personalized career path recommendations.

It’s not that companies did not do these before. The challenge was scale and reach. Due to limited resources, pre-selected people were often groomed as leaders, and HR departments focused on the headquarters. Now, with AI mentors, you can empower your employees.

Another critical aspect is offering these benefits to remote and hybrid workforces. As these workers become critical to an organization, many ask for better perks. L&D is among the top asks. Now, CHROs can extend this “perk” to their remote or contract workforces and make working with them that much more attractive.

With such benefits, it’s no wonder that 50% of the 170 analyzed companies are embracing AI in L&D, especially tech, banks and retail.

The future of work is open-ended

The role of the CHRO has evolved significantly due to technological advancements and shifting market demands. The rise of AI, particularly GenAI, presents challenges and opportunities for CHROs. While AI can automate specific tasks and enhance decision-making processes, it also requires a redefinition of work, jobs, and skills.

AI can help CHROs address issues such as pay equity and skills gaps. By democratizing knowledge and training, AI can level the playing field and create a more inclusive workplace. Additionally, AI-powered L&D programs can offer personalized learning experiences and career guidance, benefiting employees and organizations.

However, the successful integration of AI requires CHROs to remain vigilant and adaptable. They must ensure that AI models are transparent and unbiased while fostering human skills such as emotional intelligence and critical thinking. By embracing AI as a strategic tool, CHROs can navigate the changing work landscape and create a more agile, resilient, and equitable future for their organizations.

More importantly, properly deployed AIs can finally allow CHROs to think strategically. They can also pause as the world of human resources starts moving at the speed of machines. 

Image credit: iStockphoto/jacoblund