Reinvent for a human advantage

Artificial intelligence is at the forefront of every leader’s plans. But capitalizing on it remains elusive: despite $30-40 billion in enterprise investment into generative AI, MIT found 95% of organizations are getting zero return.7

Merely deploying AI is not enough to amplify human potential and achieve exponential business performance. AI delivers value only when work is redesigned around it, not when technology is layered onto outdated work models and processes.

Work redesign must focus on deconstructing jobs and workflows, understanding where AI can substitute, augment or transform work, and reconstructing new ways of working for greater impact. This process of redesign shines a spotlight on ‘sunset’ and ‘sunrise’ skills, optimally combining AI’s technical prowess with the creativity, empathy and critical thinking of the workforce. An intentional, outcomes-led approach to continuously replanning, reskilling and redeploying talent — grounded in dynamic skills intelligence and supported by a culture of AI-enablement — drives sustainable performance gains.

Redesign work for the future

Harnessing AI to drive agility and unlock scalability and exponential performance requires leaders to think beyond use cases or democratizing access to AI tools. Rather, it requires them to shift from a technology-first to a work-first approach, redesigning work to optimize human-AI collaboration while recognizing shifting skills and agility requirements.

Instead of structuring work around fixed jobs, rigid processes and narrowly defined roles, work should be seen as a fluid system of tasks to be tackled by human and/or machine capability. Don’t focus on how technology could be applied to existing jobs and processes to eliminate human work. Start with asking: what work needs to be done? Deconstruct tasks to understand which elements can be substituted, augmented or transformed using AI, reviewing the risks of transferring agency along the way.

Realizing a return on AI investments depends on intentional work design, not passive adoption, but leaders appear misaligned. While the C-suite believes redesigning work to incorporate AI and automation will deliver the greatest ROI in 2026, less than half of HR leaders plan to prioritize it.

This suggests a disconnect on the part of HR when it comes to understanding the importance of redesigning work around AI and human capability, an area where they have unique potential to lead. Work design must become a core organizational competency, with HR leaders stepping into the space of work architect to help steward organizations, leaders and employees into the new world of work.

Redesigning work to incorporate AI and automation is a top 2026 people priority:

C-Suite

Investors

HR

Orchestrating human and machine collaboration

New operating models can optimize human-AI collaboration and unlock exponential gains in agility, productivity and innovation. The ability to amplify human capability in the machine era becomes a core competitive advantage.

Digital acceleration will lead to significant dislocation of people: leaders must ensure this is intentional, its consequences understood and calibrated for. With employees depleted, sustainable success requires long-term thinking, not the chasing of short-term gains.

of investors agree organizations that are embracing the integration of both human and AI capabilities create stronger competitive advantage

of executives see redesigning work to optimize human and AI capabilities as the greatest leadership challenge in leveraging AI for business growth

of executives agree their organization is well prepared to succeed in the human-machine era — down from 65% in 2024

The future lies in managing humans and technology side-by-side, but the C-suite isn’t confident the workforce can effectively combine their skills with machine capabilities. The toolset may be enhanced, but challenges with organizational mindset and skillset remain. Fewer executives believe their organization is well prepared to succeed in the human-machine teaming era today than in 2024. But with investors more likely to get behind organizations where AI is integrated into the very fabric of work, orchestrating human-machine collaboration is business-critical.

The future of work combines human and machine capabilities

HR leaders:

82% say the future of HR lies in managing humans and digital agents side by side

C-Suite leaders:

32% believe their workforce can effectively combine human and machine capabilities

Investors:

60% are more likely to invest in organizations with embedded and integrated AI throughout the workforce

Employees:

83% agree that AI/automation will improve how their job is being done in the next two years

Build a culture of AI-enablement

Employees are increasingly concerned about job loss due to AI. This anxiety will impede value creation, agility and productivity unless leaders urgently address it. They must build a culture of AI-enablement, grounded in trust and emotional support, addressing the psychological and emotional impacts of AI openly and transparently, providing equitable access to tools and a commitment to continuous reskilling and upskilling.

Employees: “One of my biggest concerns about the future of work is job loss due to AI”

2026

2024

77% of investors are more likely to invest in companies that are committed to empowering their employees through AI education and training

Leaders should commit to transparent communication, actively involving employees in work redesign strategies, giving them agency and visibility over how their work is changing. Clear messaging about AI’s evolving capabilities and impact on work — what it can and cannot do, how it substitutes some tasks and augments others, and how it creates new work — alleviates fear and fosters confidence.

Alongside this, building AI literacy while developing new technical and human skills, like critical thinking and creativity, gives employees confidence that they have opportunities to stay relevant. And investors recognize the need for reskilling and upskilling.

Ensuring fair access

Employees do see the value in using AI, believing it has made them more productive and efficient. But leaders must ensure AI opportunities are fairly distributed: unequal access can negatively impact morale and intention to stay.

Improved productivity but unequal access: Employee sentiment on AI

During continued economic volatility, AI amplifies uncertainty. Employees believe leaders underestimate the negative emotional and psychological impact of AI on employees. They are right.

of employees believe leaders underestimate the negative emotional and psychological impact of AI on employees

of HR leaders consider the psychological and emotional impact of AI technologies as part of their digital implementation strategy

Leaders cannot afford to neglect the human impact of AI implementation. Do so and risk both losing talent and missing out on the value that can be unlocked through an AI-enabled culture — one that allows for rapid adoption and continuous learning built on trust, and where AI is a force multiplier for human capability.

Strengthen skills intelligence

Dynamic skills intelligence (the continuous signaling of changing supply and demand for skills, and insight into skills gaps) is a foundational pillar for AI-centered reinvention. Investors recognize AI is disrupting skills at speed and scale — and employees feel it, too.

With AI agents rapidly shifting the workforce skills required, organizations must rethink talent practices, empowering people to continuously upskill and reskill. But only half of the C-suite believe they are investing enough today to close the skills gaps they expect to face tomorrow.

Employees are acutely aware of the need to stay relevant, and willing to trade pay increases for upskilling opportunities. As work radically changes, skills — not jobs — are becoming the new workplace currency.

of employees worry about lacking future-ready skills

are willing to trade a 10% pay increase for opportunities to upskill in AI and digital skills

“I worry about my skills staying relevant”

2026

2024

Embrace dynamic talent and reward practices

Developing a workforce with future-fit skills requires forward-thinking talent practices. HR must lead the transition from static, job-based hierarchies to dynamic, skills-powered roles, deploying people when and where their skills are needed. Investors see the value in such an approach, yet dynamic talent models (aligning skills and talent with business demand) remain rare.

Implementing skills-powered workforce planning and talent practices is critical, as is investing in measuring technical and human skills, and building leadership capabilities to manage blended human-agentic AI teams. As AI changes the demand for skills, it also has the power to transform skills intelligence, enabling organizations to supercharge their insights.

of investors say their investment in an organization would be negatively impacted by a less progressive approach to agile and skills-based models

of investors would not invest at all in an organization with a less progressive approach to agile and skills-based models

of the C-suite agree that leaders need to move toward skills-powered talent practices to ready their organization for the future