AI Is Changing Talent Management—Here’s What To Watch For
Whether AI will create millions of jobs or cause widespread unemployment remains debated. However, its impact on talent management is clear and undeniable. Tech giants are aggressively recruiting AI experts, as seen in Meta’s reported $300 million pay packages. Simultaneously, Microsoft’s layoffs around AI investments highlight how talent needs can shift quickly.
AI’s influence extends beyond technology firms. According to the World Economic Forum’s Future of Jobs 2025 report, 69% of employers plan to hire for skills in designing AI tools, especially in areas like big data, cybersecurity, and technological literacy.
Assessing AI Readiness Among Employees
People’s views on AI’s role in their careers vary widely. This perception affects motivation to develop AI skills. For example, only 36% of women believe AI can benefit their careers, compared to 45% of men. Viewing AI as a threat rather than an opportunity can lead to resistance in gaining technical literacy.
Uncertainty about AI usage policies and trust issues also slow adoption. Employees who prefer clear rules may hesitate to use AI without explicit guidelines. Doubts about AI’s fairness and decision-making capabilities add to this hesitation.
Understanding which employees see AI as an asset—and which don’t—is key to gauging your workforce’s AI readiness. Evaluating clarity around AI use policies and addressing trust concerns can improve adoption rates.
Shifts in Non-AI Skill Demands
As AI takes over certain tasks, demand for human skills is rising. A survey of 512 employees by Better Up Labs and Stanford’s Social Media Lab found that while 65% want AI to track their performance and 55% appreciate AI help with deadlines, over 85% prefer human managers for motivation, recognition, empathy, and validation.
Skills like ethics and creativity are becoming more valuable. MIT research analyzing job tasks between 2016 and 2024 supports this trend. Most employers plan to reskill or upskill their workforce to work alongside AI: 77% will focus on internal training, and 62% expect to hire new talent with these skills.
AI’s Impact on Succession Planning
Leadership teams must have the right talent to manage AI risks effectively. More than half of CEOs (54%) see AI and related technologies as threats to their businesses, particularly in cybersecurity. With AI playing a bigger role in strategic decisions, leadership development and succession planning need to adapt.
Leadership pipelines should reflect AI’s importance to business strategy—whether AI is transforming products or supporting operations. Roles may vary, including chief AI officers, AI transformation leaders, product leaders, or innovation leaders focusing on AI across the enterprise.
Addressing Liabilities from AI Job Displacement
AI-driven job automation may disproportionately affect certain demographic groups. For example, Black and Latino workers are overrepresented in customer service, retail, and warehouse roles—jobs increasingly automated by AI. Similarly, women clustered in cashier, secretary, and bookkeeping roles may face higher displacement risks.
This can lead to disparate impact—when neutral employment decisions disproportionately harm protected groups—a legal liability. To reduce risk, companies should ensure AI-based workforce changes are justified by business needs and consider less discriminatory alternatives.
AI is reshaping talent pools and raising tough questions about who gets reskilled, hired, or let go. Companies that confront these questions directly will be better positioned to manage the changes ahead.
For managers looking to build AI proficiency within their teams, exploring targeted AI training and certification can be a practical step. Resources like Complete AI Training’s latest courses offer focused learning paths to develop necessary skills for the evolving workplace.
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