The AI spending problem isn't about technology - it's about people
Most companies are investing heavily in artificial intelligence and seeing little return. The missing piece, according to Dave Barnett, chief administrative officer at DeVry University, isn't better tools. It's workforce transformation.
Barnett recently spoke at the Society for Human Resource Management conference about why organizations struggle to turn AI investments into measurable business value. Research from Gartner shows most organizations have yet to realize meaningful returns despite heavy spending across industries.
The problem is straightforward: companies treat AI as a technology deployment exercise rather than a people challenge.
The silent standoff between employers and employees
DeVry's research uncovered what Barnett calls a "silent standoff." Employees are waiting for organizations to provide guidance, workflows and guardrails around how AI should integrate into daily work. Employers assume workers will independently experiment with tools and identify productive use cases on their own.
"Employees point to employers saying, 'There's this new stuff and you want me to do things differently - give me guardrails, give me practices, tell me how workflows change, set me up for success,'" Barnett said. "Employers, concurrently, are pointing back at employees saying, 'We've given you tools - figure it out, do some cool new stuff.'"
This disconnect explains why AI adoption stalls. Neither side is moving.
Competence and confidence matter equally
Successful adoption requires two things happening simultaneously: employees need both the skills to use AI tools and the confidence to experiment with them.
Many organizations concentrate heavily on technical training that builds competence but ignores whether workers believe the technology is relevant to their jobs or feel comfortable testing it. That gap has pushed HR deeper into change management and culture work.
"Someone needs cognitive competence and emotional confidence," Barnett said. "I believe there are two things that are absolutely requisite for someone to adopt change."
Organizations need to create environments where employees feel safe testing new tools, learning through experimentation and adapting workflows without fear of failure.
HR's expanding role in redesigning work
As AI changes what work looks like, HR leaders must play a direct role in redesigning workflows and organizational structures. This moves far beyond traditional workforce management.
"HR has to be involved in workflow design - looking at how we break jobs into tasks and tasks into skills and ensuring we're redesigning workflows to leverage this new collaborator in the workplace called AI," Barnett said.
That responsibility extends into hiring strategies and organizational design. As some work becomes automated, organizations must identify where human capabilities create distinct competitive value.
Barnett also stressed the importance of long-term workforce planning alongside short-term operational guidance. The speed of AI development creates pressure to continuously educate employees about technologies still evolving.
"To me, it requires long-term direction and short-term acuity," he said. "We have to be clear and precise with people about the next three steps in front of them, while concurrently creating space for a longer-term vision."
Different groups need different strategies
Organizations should avoid applying a single AI strategy uniformly across the workforce. Instead, segment employees into groups with different responsibilities.
- Most employees need practical, near-term guidance on how AI affects their current work
- A mid-tier team focuses on testing and experimentation
- A top tier of innovators scans the environment for the next change
This tiered approach prevents both paralysis and reckless experimentation.
AI and human intelligence together
At DeVry, AI is already integrated into several HR functions. The university uses AI-powered learning systems that build adaptive learning journeys tailored to individual employees. It has launched an external platform using an AI learning coach to help partner organizations with workforce development. The organization also applies AI to employee communications, benefits administration and healthcare navigation services.
But Barnett sees AI's real value differently. "My deep belief is that as we think about the future of work, it's not about AI alone," he said. "It's about AI plus HI - artificial and human intelligence coming together to create new value."
For HR leaders, this means the role is no longer about managing headcount. It's about managing how people and technology work together.
Learn more about AI's role in HR leadership or explore AI applications across human resources functions.
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