Empowering HR: The Secret Weapon in Navigating Your Company's AI Transformation

Two things I know to be true:?

1. AI is causing angst and anxiety in organizations.?
2. HR is your secret weapon for successful AI strategy creation and implementation.

If those things feel dissimilar or perhaps totally unrelated, bear with me—I promise they have everything to do with each other. I talked about it last week when I gave the keynote address at the HR Technology Conference in Las Vegas and the SHRM (Society of Human Resource Management) Executive Network Conference in Austin.

People are rightly concerned about what's happening with their jobs in this new GenAI era. As of last December, 42% of people were “very worried” about the impact of AI on their careers.

I've heard so many valid concerns:??

"How is my job going to change?"?

"Will my job exist in the future?

“Will my company even exist?”?

But we have a choice of thinking about this neutral technology as a negative force or a positive one, and it depends so much on the people (and the leaders!) using it.?

The best way to address the fears—and get people focused more on their work—is to have a strategy.?

HR's Role in AI Strategy?

The thinking around HR is often "AI isn't in our space. It's over in a completely different part of the organization. This shouldn't be a concern of ours." I saw this in real-time at a conference, where I took a poll. I asked a roomful of HR professionals, "How many people are using AI regularly?” About half were using AI at least a couple of times a week, with 23% using it daily. But half weren't using it much, and 5% hadn't tried it yet.

There's a real gap between knowing and doing—and an even more significant gap between doing and leading. However, HR needs to be an active participant in strategy. Here's why:

1. There are substantial workforce implications for AI. People expect to use AI in their jobs. Workforce planning, strategy, training, upskilling, and reskilling all require HR involvement. AI transformation is a people issue.
2. We need communication around AI transformation. HR is the focal point of much of that communication and training within the organization.
3. AI will change culture and leadership. If the way things are done is changing, then culture will change, too.

It's time for HR to cast off its traditional roles and step into this new space. This transformation is twofold: It's about HR transforming its function inside the organization and the people in HR becoming experts in AI themselves.

A Seat at the (Strategy) Table?

As your organization develops a strategy, you'll inevitably need to create an MVT (Minimally Viable Team)—a group of essential people who will drive the strategy forward.

Here's who should pull up a chair:?

??A strategy executive who can tie AI into the overall business strategy.?

??Technology person who understands digital and AI.?

??Product or customer expert?

??Commercial or finance team member?

??HR!

HR's participation can elevate the conversation and enable the organization to think big, start small, and scale fast.

4 Paths to Strategy?

When we talk about HR strategy, we tend to think about use cases—recruiting, training, engagement, even performance reviews. HR should definitely do this. But to be honest, these use cases are table stakes. Everyone will need to be fluent and capable of executing them. But use cases are not a strategy.

Let’s shift our thinking—and consider how HR can roll up AI into their overall business strategy.

Strategy 1: Preparing the Organization for AI Integration?

HR needs to lead the charge in preparing the organization for AI integration, starting with their own department. Invest in training, conferences, and workshops. One company I worked with set up a secure AI playground using Microsoft Copilot and secure versions of ChatGPT. They trained their top two levels of executives (80 people!) and later, another 400 direct reports.

This enabled strategic thinkers to be supported by AI, IT/AI departments, and HR in considering AI's impact on the business and on people. They also shared learnings with each other, treating prompts as IP.

AI will become a basic skill for knowledge workers. The sooner we all get into this space, the better off we’ll be.

Strategy 2: Governance and Policy Development?

HR operates in the realm of legal, risk, security, and compliance. But I’d encourage you to consider a governance structure for AI. Governance and policies prevent problems and help us move faster.

The key ingredient? Trust. When you can mitigate risks and have confidence in your systems, you can accelerate.

For a deep dive on trust, be sure to watch my recent livestream on how to deploy a “Hierarchy of Trust” in your organization.?

Strategy 3: Communicating Transparently?

Let me say it louder for the folks in the back: Our employees need to know what's happening in our organizations. They want openness about AI use and its impact on them. Be honest. Communicate that AI won't take their job—but someone using AI might. This means they need to engage in the training you provide.

These conversations aren't easy, but they're necessary. Without them, fear, uncertainty, and doubt take hold.

Strategy 4: Fostering a Culture Ready for AI?

Culture eats strategy for breakfast. You can have a brilliant competitive strategy, but if your culture isn't ready, it won't work. Culture will pull you through.

My research and work with organizations have taught me there are three core beliefs of a disruptive culture. Consider (and adjust!) your alignment with the following:?

• Openness: Encourage greater information flow throughout the organization and involve more people in decision-making processes.

• Agency: Enable employees to feel and act like owners, giving them the authority to make important decisions that drive the business forward.

• Bias for action: Foster an environment where decisions are made quickly, even without perfect information, recognizing that the future is constantly evolving.

Ultimately, if you're in HR, consider what your role is in leading AI transformation. How will you serve as a role model? How will you reassure anxious stakeholders about coming changes? And for those who haven't yet invited HR to the table, bring them in now. Help them understand how to use AI in their current roles. This will boost productivity and free them to think and act more strategically.

Your Turn

What is the role of HR in your organization's AI transformation??