As AI adoption accelerates, businesses are leveraging its potential across various functions. However, a new survey from The Conference Board reveals a gap in HR leaders’ priorities: only 7% of CHROs are implementing reskilling strategies for job roles most affected by AI-driven automation. Instead, HR leaders are prioritizing AI experimentation and governance while underestimating the urgency of workforce reskilling.
Key Findings from The Conference Board CHRO Confidence Index
1. Reskilling for AI Impact is Low on the Agenda
- Only 7% of CHROs are actively reskilling workers in roles where AI could replace at least 25% of tasks.
- Diana Scott, Leader of The Conference Board US Human Capital Center, warns, “Organizations that neglect workforce reskilling risk falling behind as AI reshapes roles and demands new skill sets.”
2. AI Experimentation Leads HR Priorities
Instead of reskilling, CHROs are focusing on exploring AI’s potential in human capital management:
- 62% are piloting AI use cases to improve HR functions.
- 36% are advocating governance policies to mitigate AI-related risks.
- 21% are implementing AI literacy programs for their workforce.
3. Addressing AI Risks and Opportunities
- 21% are emphasizing AI’s benefits to mitigate workforce concerns about displacement.
- 20% are supporting the creation of AI-related roles to strengthen organizational expertise.
Insights into Workforce Dynamics
The CHRO Confidence Index, which measures hiring, retention, and engagement, reflects a stable outlook for the workforce, though challenges remain:
Hiring:
- Confidence fell slightly to 54 in Q4 from 55 in Q2.
- 37% of CHROs plan to increase hiring in the next six months, down from 41% in Q2.
- 19% expect hiring to decrease, up from 11% six months ago.
Retention:
- Retention confidence dipped to 53 in Q4, down from 54 in Q2.
- 34% of CHROs expect retention to improve, up from 31% earlier in 2024.
Engagement:
- Engagement confidence rose to 55 in Q4, up from 53 in Q2.
- 42% anticipate higher engagement levels in 2025, marking a significant increase from 36% in Q2.
While HR leaders are optimistic about AI’s potential to enhance workforce management, the lack of emphasis on reskilling raises concerns about long-term readiness. Balancing AI experimentation with proactive workforce development will be key to staying competitive as AI reshapes the future of work.
