Why HR Is Still Sidelined in AI Strategy—and How to Change That

The silent void: Why HR's still missing a spot in the AI strategy table

AI is reshaping workplaces across industries—changing how work is done, who does it, and which skills matter most. Yet, HR, the very function responsible for preparing people for the future, remains largely absent from AI strategy discussions. A 2025 Harvard Business Review Analytic Services study reveals that only 21% of HR leaders worldwide are meaningfully involved in shaping their organisation’s AI strategy. This gap isn’t just an oversight; it’s a risk that threatens the alignment between talent planning and technology.

Consider this: a recruiter spots an unconventional candidate for a learning and development role. The hiring manager dismisses the candidate for lacking traditional credentials. Then an AI-driven internal mobility platform independently ranks the same candidate as a top match, based on skills and behavioural patterns. The candidate gets interviewed and hired. This moment marks a shift—technology empowering HR’s voice with data-driven insight.

Despite these changes, many HR leaders feel the pressure mounting. According to the same HBR survey, 64% say the demand to deliver value from AI has never been higher, yet only 21% have a seat at the AI strategy table. Gartner’s 2025 CHRO Study adds that 70% of HR leaders believe their function needs reinvention within two years, but only 30% feel confident leading that change. LinkedIn’s 2024 Workplace Learning Report identifies AI literacy as one of the top skills HR must build across their organisations—alongside adaptability and analytical thinking—but most HR teams aren’t ready yet.

What’s holding HR back?

The barriers run deeper than just skills. Trust and credibility are at the core. A 2025 PwC CEO Survey found only 37% of CEOs have high confidence in HR’s ability to deliver on critical business goals, compared to 68% for finance and 61% for operations. When it comes to AI-related workforce transformation, confidence in HR drops to 23%. Several systemic issues reinforce this gap:

• Risk-aversion culture: HR’s focus on compliance and legal frameworks slows innovation. Every tool must pass multiple reviews, making experimentation difficult.
• Siloed thinking: Operating separately from other functions limits HR’s understanding of how AI reshapes workflows across the organisation, resulting in strategies that fail in practice.
• Vendor dependency: Unlike finance or operations, HR often relies on external providers for AI tools. This reliance weakens their ability to critically assess technology and build internal expertise.
• Generational friction: Senior HR leaders trained in analogue systems face challenges adapting to digital-first demands, while younger HR staff with AI knowledge often lack influence to implement change.

Redefining HR as a strategic enabler

HR must move beyond catching up and become a strategic enabler of transformation. Some organisations are already making progress by:

• Turning risk aversion into experimentation: One industrial firm piloted AI to identify internal candidates for stretch assignments. The pilot was fully auditable, low-risk, and delivered 3x more lateral moves and 2x higher success rates without compliance issues. This gradual approach won leadership support.
• Building AI fluency internally: Another company rotated HR business partners through AI literacy workshops co-created with data scientists. Within six months, these HR professionals advised units on AI applications in onboarding, performance, and skills forecasting. Embedding fluency in existing staff is key.
• Embedding HR in tech decisions: A multinational corporation made its CHRO a co-sponsor of digital transformation projects. HR leaders now participate alongside finance, IT, and operations when AI budgets and tools are chosen, ensuring early input rather than late adoption.

Time for HR to lead, not follow

The recruiter’s voice, once overlooked, now carries weight backed by AI insights. Talent previously missed is being uncovered through intelligent systems. HR, often seen as administrative, has a chance to architect workforce transformation.

This opportunity won’t be won through policy memos or annual reviews. It demands strategic foresight, technological fluency, and a readiness to rethink risk. Saying yes to controlled experimentation, managing risk intelligently, and moving from reacting to co-designing technology with people front and centre will define the next phase for HR.

For leaders ready to build AI skills within HR and across their organisations, resources like Complete AI Training’s latest courses offer practical guidance on AI adoption and literacy.