AI Challenges and Opportunities Put HR at the Center of Organizational Success, New Harvard Business Review Report Finds

New Harvard Business Review Report Highlights AI Challenges and Opportunities for HR

Human resources has a unique chance to become a key strategic partner in organizations' AI efforts. But to seize this opportunity, HR leaders must overcome significant barriers.

A recent survey report from Harvard Business Review Analytic Services, sponsored by Eightfold AI, sheds light on the critical role HR professionals need to play as AI transforms business. The report reveals both the potential and the gaps in how HR currently supports AI adoption.

Based on responses from 371 HR professionals and business leaders—most holding senior roles and working in large organizations—the report shows strong agreement on one point: talent is essential to AI success. In fact, 91% of respondents see the right talent as crucial for effective AI integration. Yet, challenges remain. For example, 72% say AI has worsened existing technical skill shortages, and just 21% report that HR leaders are actively involved in shaping AI strategies.

Key Insights from the Report

The report also includes interviews with talent leaders from Fortune 500 companies, highlighting urgent needs and opportunities for HR in this changing environment. Forward-looking HR teams can turn AI from a challenge into an advantage by focusing on upskilling, reskilling, and building workforce adaptability.

• Lack of AI Expertise: Over half (52%) see insufficient AI knowledge within HR as the main barrier to influencing AI strategy.
• Reskilling and Upskilling Effectiveness: Only 35% believe their teams are effective at preparing employees for AI-related roles.
• Training Focus: More than half (54%) prioritize developing AI skills among employees to close skill gaps.
• Data Literacy and Adaptability: Building skills in data analysis, change management, and flexibility is seen as essential for future-ready HR leaders.
• Limited Strategic HR Involvement: A mere 21% say HR leadership has a strong role in AI strategy development, revealing a disconnect.
• Technical Skills Gaps: 72% agree AI adoption has made workforce technical weaknesses more apparent.
• Value of Soft Skills: Business leaders increasingly prioritize creative problem-solving over pure technical skills, opening doors for HR to broaden talent development.
• Talent Pipeline Challenges: Many organizations struggle to build sustainable AI talent pipelines, presenting opportunities for early adopters.

Changing Competencies for HR Professionals

The report points to new skill requirements for HR in the AI era. These include:

• Data-Driven Decision Making: HR leaders must skillfully use workforce data to guide AI-aligned strategies.
• Change Management: Leading cultural and procedural shifts related to AI adoption is critical.
• Adaptability: HR must keep pace with AI developments and enable employees to adjust accordingly.

Rethinking Talent Strategies

Traditional hiring and career development approaches need an update. The report recommends shifting from role-based hiring to skills-based strategies aligned with AI needs. This means preparing employees for evolving job demands and fostering a culture open to AI integration.

HR professionals stand at a crossroads with a rare chance to become strategic enablers in AI adoption. Overcoming capability gaps and increasing involvement in AI strategy will be key.

For leaders ready to build AI-savvy HR teams, exploring targeted AI skill development can be a practical next step. Resources like Complete AI Training’s skills-based courses offer focused learning paths to help HR professionals grow their expertise and lead their organizations confidently into the AI future.

Read the full report, Empowering HR to Become AI-Savvy Talent Leaders, at Eightfold AI.