Nearly eight in 10 business leaders expect AI to boost growth and profitability, yet HR leaders are far less convinced organisations are ready for the workforce transformation required, reveals new study highlighting a growing gap between AI ambition and people readiness.
Businesses are investing heavily in artificial intelligence (AI), but many may be underestimating the workforce changes needed to make those investments succeed, according to new global research. The latest Protiviti AI Pulse Survey found that while almost eight in 10 executives expect AI to improve profitability and drive revenue growth over the next three years, HR leaders are significantly less confident that organisations are prepared for the changes to jobs, skills and ways of working required to realise that value.
Rather than questioning AI itself, Chief Human Resources Officers (CHROs) are raising concerns that many organisations remain focused on technology deployment while overlooking the people, learning and organisational redesign needed to successfully scale AI. The research reinforces a growing trend highlighted by Fair Play Talks earlier this year, which found that seven in 10 employers believe AI can help solve skills shortages, yet three-quarters of workers fear the technology could ultimately reduce employment opportunities. This study exposed a widening disconnect between executive ambition and employee confidence.
AI WORKFORCE READINESS
Protiviti’s fifth AI Pulse Survey, The AI-People Conundrum: Learning to Lead, Not Lag, found HR leaders were consistently the least confident members of the C-suite when assessing organisational readiness for AI. Among the key findings:
- Only 13% of CHROs strongly agree their organisations’ job designs are AI-ready, compared with 28% across the wider C-suite.
- Just 14% strongly agree their learning and development capabilities are AI-ready, versus 36% overall.
- Only 5% expect at least half of HR work to be AI-enabled within the next three years.
- 82% expect organisations to operate with a combined human and digital workforce by 2030, compared with 93% across the broader executive population.
According to the report, HR leaders recognise that introducing AI is not simply about deploying new technology. It requires organisations to rethink roles, redesign career pathways, develop new skills and prepare managers to lead increasingly AI-enabled teams.
“The survey reveals an important disconnect in the C-suite,” said Fran Maxwell, Global Leader, People & Change at Protiviti. “Most leaders are focused on the value AI can deliver for the business. HR leaders are focused on whether their organisations and people are actually ready to deliver it. AI can create tremendous business value, but only if organisations invest appropriately in the non-technical aspects of AI transformation, including people enablement, operating model redesign and process redesign.”
AI OPTIMISM REMAINS HIGH
Despite HR’s concerns, executives continue to predict rapid AI adoption across business functions. Nearly 80% believe AI will improve both profitability and revenue growth within the next three years. Meanwhile, expectations for AI-enabled work continue to rise across finance, supply chain, audit and IT.
However, HR leaders remain considerably more cautious. Around 60% expect less than a quarter of HR activities to be AI-enabled within three years, despite estimates that more than 80% of HR tasks could potentially benefit from automation. The findings reinforce a growing body of research suggesting that the biggest barriers to AI success are becoming organisational rather than technological. In fact, businesses are investing in AI faster than they are preparing people.
AI ADOPTION CHALLENGES
Fair Play Talks previously reported that 70% of workers say they are ready to use AI, yet only 39% of business leaders believe their employees are prepared, highlighting another significant perception gap between leadership and the workforce.
The research also echoes another emerging trend. A recent global study covered by Fair Play Talks found that many employers remain focused on helping employees use today’s AI tools rather than preparing them for the fundamental job redesign, reskilling and new career pathways AI is expected to create. Together, the findings suggest organisations may be accelerating AI adoption without investing at the same pace in long-term workforce transformation.
Meanwhile, separate research found that almost half of employees worry AI is making them less intelligent, highlighting growing concerns around confidence, critical thinking and responsible AI adoption.
RETURNS ON AI INVESTMENT
Those concerns are becoming increasingly significant as organisations seek stronger returns from AI investment. Earlier this year, Fair Play Talks reported that seven in 10 companies could cut AI spending if return on investment continues to disappoint, suggesting that technology investment alone is unlikely to guarantee commercial success.
Even CEOs themselves are becoming increasingly aware of the risks. Separate research found that eight out of 10 chief executives believe AI could ultimately cost them their own jobs, illustrating how profoundly AI is reshaping leadership expectations.
PREPARING WORKFORCE FOR AI
One of the clearest messages from the research is that AI success cannot be measured solely by technology deployment. As organisations redesign work around AI, the challenge increasingly lies in preparing people for new roles, new skills and new ways of working.
That aligns with Fair Play Talks‘ previous reports on the importance of responsible AI, which found organisations must balance innovation with transparency, governance and employee trust if AI is to deliver sustainable value.
“AI transformation is ultimately a workforce transformation. Technology alone won’t determine which organisations succeed,” Maxwell concluded. “Capturing AI’s full value will depend on leaders treating workforce transformation as a strategic priority alongside technology transformation. That starts with HR playing a leading role in shaping the roles, skills and organisational changes required to turn AI investments into business value.”
WHAT EMPLOYERS SHOULD DO NEXT
The research suggests organisations should place HR at the centre of AI strategy rather than treating workforce planning as an afterthought. Employers should consider:
- Treating AI as a workforce transformation programme, not simply a technology project.
- Redesigning roles and career pathways alongside AI implementation rather than automating existing jobs.
- Investing in continuous learning and reskilling to prepare employees for future AI-enabled roles.
- Giving HR a strategic leadership role in AI planning and implementation.
- Preparing managers to lead hybrid teams made up of people and AI-powered digital workers.
- Measuring AI success not only through productivity gains but also employee confidence, capability, trust and organisational readiness.
As businesses continue accelerating AI adoption, the organisations most likely to realise long-term value may not be those investing the most in technology, but those investing equally in their people.
Click here to read the full report.
RELATED ARTICLES
Seven in 10 employers believe AI can help solve skills shortages, yet three-quarters of workers fear the technology could ultimately reduce employment opportunities, reveals survey.
Around 70% of workers say they are ready to use AI, yet only 39% of business leaders believe their employees are prepared, study shows.
Many employers remain focused on helping employees use today’s AI tools rather than preparing them for the fundamental job redesign, reskilling and new career pathways AI is expected to create.
Almost half of employees worry AI is making them less intelligent, study shows.
Seven in 10 companies could cut AI spending if return on investment continues to disappoint, reveals report.
Eight out of 10 chief executives believe AI could ultimately cost them their own jobs, study shows.
New study reveals the need for responsible AI practices.
Sign up for our newsletter
