Business Acumen Tops HR Priorities for 2025 as AI Reshapes Leadership Demands

Business Acumen: The Must-Have Skill for HR Leaders in 2025

The latest Chief People Officers Outlook report from the World Economic Forum puts business acumen at the top of the list for HR leaders' essential skills in 2025. Every people leader surveyed ranked business acumen and strategic thinking among their top three success factors. Nearly 90% identified it as their highest priority.

This focus comes as organizations reshape roles, cultures, and operations while integrating artificial intelligence (AI) into their workforces.

From Support Role to Strategic Partner

Kelly Jones, Chief People Officer at Cisco, warns that HR risks becoming a sidelined support function without strong business acumen. She stresses that HR must "speak the language of revenue, cost structures, customer expectations, and workforce capabilities" to remain relevant as AI changes value chains and business models.

Jones highlights that great HR leaders are essentially business leaders who specialize in people. By embedding themselves within business units—joining product sessions and customer meetings—HR can become a true strategic driver. This approach shapes outcomes, influences direction, and leads change that delivers measurable results.

Growing Through Cross-Functional Experience

Shaji Mathew, Chief Human Resources Officer at Infosys, emphasizes aligning talent with business needs as the core of HR’s evolving role. He points to financial literacy, market knowledge, and especially cross-functional projects as key ways to develop business acumen.

Myriam Beatove, Chief Human Resources Officer at Randstad, agrees. She encourages HR leaders to seek cross-functional roles to gain a broader business perspective, build credibility, and develop systems thinking. These experiences enable HR professionals to advise effectively on critical business matters.

AI and Business Acumen: A Crucial Combination

The report highlights that AI-powered learning and development is no longer optional but essential for future-ready organizations. Business acumen anchors AI initiatives to ensure they are innovative yet grounded in real business challenges.

It calls for a mutual understanding where business professionals grasp AI fundamentals and AI experts understand core business concepts. This blend reduces resistance and boosts AI’s impact.

HR leaders are expected to become "dot connectors" and change agents, linking AI and business knowledge to drive sustainable growth and innovation.

As one chief people officer put it: "You can’t separate people and business anymore."

Boost Your Business Acumen and AI Skills

For HR professionals looking to sharpen their business and AI capabilities, exploring specialized courses can help build practical knowledge. Resources like Complete AI Training offer tailored learning paths to stay ahead in this evolving landscape.