AI at work: Why CEOs and HR must lead the charge

The father of modern HR, renowned HR guru Prof. Dave Ulrich, states in this interview that AI is no longer a distant disruption—it is already reshaping how we work, lead, and make decisions. His insights provide a clear roadmap for HR leaders and CEOs to not only adapt, but also shape the future of work with clarity, courage, and compassion

By Dinesh Weerakkody 

Prof. Ulrich, how can HR align their workforce strategy with AI-driven business models?

According to Prof. Ulrich, aligning workforce strategy with AI-enabled business models follows a familiar strategic sequence. First, HR must understand the changing business context and stakeholder expectations, including how markets, customers, and employees are being reshaped by technology. Next comes strategy: defining where to compete and how to win—a process in which AI can provide rapid, data-driven insights. Based on this strategy, HR must identify key positions that are essential for value creation. Finally, HR focuses on talent—defining what makes someone an “A-player” for those roles and ensuring they are positioned to deliver maximum impact. 

AI plays an enabling role at each stage by providing information, enhancing decision-making, recognising patterns, and guiding actions. By using AI, HR moves from being a support function to also becoming a strategic driver of stakeholder value.

What critical competencies should employees build today to protect their livelihood?

Prof. Ulrich highlights the need for a blend of technical, analytical, and human-centric capabilities. Technically, employees need AI literacy—the ability to access, understand, and manage digital information. Analytically, they must be able to translate data into sound decisions and results. Equally important are soft skills that define effective leadership and collaboration. Drawing from his Leadership Code framework, Ulrich identifies five key domains. Personal proficiency involves knowing one’s strengths and weaknesses, acting with integrity, working hard, staying resilient, and committing to continuous learning. 

As a strategist, one must set a vision for the future, articulate strategy, and inspire others through uncertainty. The executor role is about making smart decisions, managing change, ensuring accountability, and delivering results. A good talent manager builds strong teams, listens actively, manages conflict, and fosters inclusion. As a human capital developer, one should create a positive work culture, coach others, and ensure psychological safety. These competencies are essential for thriving in a tech-enabled, people-focused environment.

There is clear evidence of CEOs falling behind in adapting to AI. Based on your research, are CEOs using AI internally to drive productivity and optimise workflows?

Yes—many are already doing so. Prof. Ulrich notes that CEOs are deploying AI in two major ways. Generative AI is being used to rapidly access information and generate insights, helping leaders make decisions faster and with greater clarity. Agentic AI, focused on automation, drives cost reduction and efficiency by streamlining workflows and eliminating waste. While most applications today are aimed at reducing cost (the “denominator”), Ulrich believes the future lies in using AI to enhance innovation and drive revenue growth (the “numerator”)—as confidence in the technology matures.

Another concern is ethics and governance. In your view, does HR have the right ethical, legal, and governance frameworks for AI deployment?

“Sort of,” says Ulrich. While some frameworks are emerging, their implementation varies significantly across organisations. He encourages HR and business leaders to evaluate their AI readiness using a practical checklist. This includes articulating a clear business case for AI, creating responsible and inclusive policies, developing internal AI capabilities, using accessible language, upgrading people processes, starting with low-risk initiatives, and defining metrics to track success. This type of self-assessment ensures that AI is deployed in a safe, ethical, and transparent manner.

Another challenge is getting employees on board. How should HR communicate with employees about AI-driven change? Because aligning strategy, people, and technology to future-proof organisations is key for survival. 

HR must engage employees openly and honestly, especially when addressing the paradoxes AI introduces. Prof. Ulrich highlights some of the key tensions HR needs to manage, such as balancing speed with sustainability, innovation with job security, and efficiency with empathy. By fostering transparent, two-way conversations, HR can build trust, reduce resistance, and prepare employees to embrace the future. “The human side of technology,” Ulrich concludes, “is often where success is won or lost,” with the formula: Artificial Intelligence * Authentic Intimacy.