Only 1 percent of organisations believe they have achieved a mature, successful adoption of AI despite major investments. HR leaders must prioritise agile transformation and people-first thinking to unlock AI’s full potential. This will empower employees along with new technology.
Many organisations treat AI as a problem of technology, investing in infrastructures, algorithms, and specialist talent. This approach, however, leaves out an important component of the puzzle. Success in AI is not just about the technology – it also involves culture, mindset and leaders. It’s about people.
The illusion of Progress
It’s easy to think that we are all on the same page and making progress. In practice, however, the adoption of AI is still very limited. Most organisations have used AI for isolated workflows or pilot programs, but few have been able to transform these efforts into a system that can change the way their organization operates.
Recent research by McKinsey highlights this disconnect. Even though most companies invest in AI, only 1% claim to have reached a maturity level where AI is deeply embedded and produces concrete business results. Four out of five companies haven’t seen any measurable impacts on profitability, despite years of planning and investing.
It’s not about a lack of intention. It’s about a failure to change.
The way AI is introduced has a lot to do with the slowdown. Many executives see it as just another system that needs to be implemented. For employees who are expected to work and adopt AI on a daily basis, it can be confusing, intimidating, or even threatening. Resistance is inevitable when technology is implemented with no support, involvement or clarity.
This top-down mentality – in which AI is viewed as a mandate for leadership rather than a journey shared by all – creates silos. Middle managers and frontline staff may be disengaged, while senior leaders feel empowered and excited. To close this gap, you need to go beyond the technical implementations and develop an organisational culture which is set to change.
Trust, ethics and safety
Organisations must consider the ethical implications of AI as they integrate it into new areas of work. Customers, employees and regulators are all paying more attention to the use (and misuse) of AI.
Companies need to have clear frameworks in place to build trust. It could be creating ethics committees for AI implementation or ensuring transparency of algorithmic decisions. Or it might mean defining boundaries on what AI can and cannot do. These aren’t compliance measures; they enable confidence both internally and externally.
It is important to make it clear to your employees that AI will be introduced in a responsible, thoughtful and beneficial way.
Fear is the biggest barrier to adoption. Fear of being replaced or made redundant. This fear is real, and it can lead people to disengage or passively resist.
Leaders in business and their HR partners need to reframe AI as something other than a “job killer” – a tool that can free up time, improve decision-making, and allow for more fulfilling, strategic work. Storytelling, communication and transparency are required to make this shift. Showcase how AI can help real employees. Encourage open and honest discussions about concerns.
It is important to upskill. By investing in training programs that encourage employees to work with AI rather than against it, you send a powerful signal: we value you and are invested in your future.
Leading with emotional intelligence
The best HR and leadership teams in a time of major change are not necessarily the tech-savvy ones – they are the ones who have the highest emotional intelligence. Listening is key. They listen. They are able to empathise.
AI may optimise workflows but empathy is what builds resilient teams. HR leaders that focus on psychological security, welcome questions, and admit to not having all the answers will be in the best position to guide their organisation.
Curiosity is more likely to be sparked by emotional intelligence. When people feel comfortable to learn, experiment and adapt, they can transform in a sustainable way.
All of these things contribute to an organisation that is more agile and resilient. Agile approaches allow companies to quickly test and iterate AI projects, scaling up what works and discarding the rest.
Internal communication must also keep up with the pace. By demystifying AI through clear, non-jargon updates, real-life examples, and by keeping the dialogue open, you can increase employee understanding and engagement.
People first
AI could be the most significant transformation in our lifetimes, on par with the Industrial Revolution. Its success will not depend on how many models or tools we use, but how well we integrate these into our workplaces.
This means helping people, gaining trust, and designing the work to enhance human capabilities rather than replace them. The goal of AI is not to replace humans, but rather to enhance them. Better work, better decisions, and happier teams should be the goal.
