In 2025, CEOs are placing growth at the forefront—driven largely by technological innovation. Among these, generative AI (gen AI) is a top priority, with leaders looking to scale productivity and optimize resources. However, the path to effective AI adoption is not just technical—it’s organizational.
According to Gartner’s 2024 research, 86% of CEOs planned to use AI to maintain or grow revenue, but organizational design (OD) remains a significant barrier. Without a structure that is agile, collaborative, and forward-thinking, even the best technology can underperform.
The OD Gap: Why Current Structures Fall Short
To support technology adoption, organizations need an OD that:
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Fosters collaboration and agility
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Enables data-driven decision-making
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Empowers teams
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Is backed by strong, adaptive leadership
However, many CHROs are not confident in their current setups:
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58% believe their OD is not flexible enough
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40% say it hinders productivity
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Only 44% feel confident they can deliver OD goals in the next 12–18 months
Two-Phase Approach: How Progressive CHROs Are Responding
Leading CHROs aren’t rushing into massive redesigns. Instead, they are taking a phased approach:
Phase 1: Minimize Existing OD Barriers
Friction in the workplace is rising—67% of employees now report working in high-friction environments, up from 64% in 2022. CHROs are responding by reframing friction as opportunity when thoughtfully applied:
Actions:
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Redesign workflows for seamless human-AI collaboration
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Analyze task complexity for human vs. AI assignment
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Set clear boundaries for interaction
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Evaluate and iterate processes for improvement
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Leverage intentional friction points
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Create “pause points” where humans review AI outputs
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Reduce rework and improve decision quality
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Collaborate closely with IT for interface optimization
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Phase 2: Build OD Agility for Long-Term Transformation
CHROs are embracing structural innovation to future-proof their organizations:
1. Flatten Hierarchies Without Cutting Talent
AI will reduce repetitive workload—but that doesn’t mean job cuts. Instead:
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Streamline reporting structures
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Invest in reskilling and redeployment
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Reassure employees through collaborative, human-tech teams
2. Adopt Fusion Teams for Democratized Tech Leadership
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Promote cross-functional teams where business and tech share accountability
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Transition from IT-led to business-led digital leadership
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Build communities of practice for continuous, embedded learning
3. Boost Digital Learning Through Rotational Models
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Offer self-nominated team rotations to encourage upskilling
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Use structured systems for preferences and continuity
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One successful model involved 18-month rotations, leading to measurable digital skill growth
CHROs at the Core of Tech ROI
As AI and other innovations become central to growth, CEOs are counting on CHROs to redesign how work happens. The ability to embed agility, foster human-tech collaboration, and build resilient workforce structures is now a competitive advantage.
CHROs who take bold, strategic steps to align OD with technology adoption will unlock not just AI’s potential—but the organization’s full potential as well.
Source – HR Executive
