BCG-2026+构建人才优势：首席人力资源官的四大关键举措+Creating+people+Advantage：Four+Power+Moves+for+the+CHRO

CREATINGPEOPLEADVANTAGE2026

FourPowerMoves

fortheCHRO

March2026

ByPhilippKolo,JensBaier,FrankBreitling,FangRuan,SuketuShah,PeckKemLow,AnthonyAriganello,

AidaTroncoso,LucasvanWees,AmyDufrane,UlrikS.Brix,andKaiHelfritz

Contents

03ExecutiveSummary

04Introduction

05Today’sHRPriorities

09HR’sRoleinCreating

BusinessValue

12LeadingtheDigitaland

AITransformation

15

BuildingWorkforceand

LeadershipCapabilities

17

FourPowerMovesforthe

CHROoftheFuture

18

Conclusion

19

Appendix1:Regional

Variations

21

Appendix2:HowCompany

SizeShapesHRPriorities

22

Appendix3:Methodology

24

Appendix4:Definitions

ofthe28People

ManagementTopics

26

AbouttheAuthors

27

Acknowledgments

28

SupportingOrganizations

30

ForFurtherReading

ExecutiveSummary

Inanincreasinglyfast-changingandcomplexbusiness

environment,CHROscanmakeorbreakbusiness

performance.ThebestCHROshaveearnedaseatatthe

tableamongleadershipteams,deployingdigitalandAItodeliverHRservicesefficientlyandeffectively,building

peoplecapabilitiestodrivestrategicpriorities—includingenterprise-wideAItransformation—lookingaheadtomeetrapidlyevolvingskillandworkforceneeds,andultimately

drivingbusinessvalue.ButmanyHRteamsstillstruggletoperformatthatlevel.

Overthepasttwodecades,BCG’sCreatingPeople

Advantagereports,inpartnershipwiththeWorldFederationofPeopleManagementAssociations(WFPMA),have

providedcriticalguidanceinhelpingCHROsposition

themselvesinthefirstgroup.Thisyear’sanalysis—whichdrewonresponsesfrommorethan7,000HRandbusinessleaders—looksat28peoplemanagementtopicsand

identifiesthebiggestpriorities.

Keyfindings:

•StrongerHRcapabilitiesleadtogreaterbusiness

value.Companiesthathavehighercapabilitiesinareas

likeemployeeengagementandwell-being,recruiting

andonboarding,andsustainabilitycanbettersupport

businessobjectives,byhelpingleadersshapeanddeveloptheworkforcemorestrategically.

•However,HRfunctionsarestrongerintraditionalareas.Incontrast,companiesremainstronginsubjectslikecomplianceandemployeerelations,andrecruitingandonboardingcontinuetobenefitfromautomation

anddata-drivenprocesses.Theseareimportant,buttheyarefoundationalandwon’tdriveoutstanding

businessperformance.

•CHROsaren’tyetcapitalizingondigital.Digital

solutionsmadethebiggestjumpintermsoffuture

importanceamongrespondents—improving13ranksto12th—butitshouldlikelyberankedevenhigher.Currentcapabilitiesinthisareaareamongthelowestoverall,

underscoringtheneedforCHROstoact.

•Smallandmedium-sizedenterprises(SMEs)needtocatchupintheiradoptionofdigital.LargecompaniesaremorelikelytoprioritizetopicslikeGenAI,people

analyticsandstrategicinsights,whereasSMEsstillrankthesenearthebottomintermsoffutureimportance.

TheresultspointtofourmovesforCHROs.

•DeliverbusinessvaluethroughHR.CHROsshouldnotonlyimprovetheperformanceoftheHRfunctionbutexpandtheirfocustomoredirectlyconnectpeopleeffortswiththestrategicbusinesspriorities.EverythingtheCHROdoesshouldbeviewedthroughthislens—doesthisserveabusinessoutcome?

•LeadthedigitalandAItransformation.CHROs

needtoembracethedualimperativeofmodernizing

HRwithdigitalandAItobettersupportbusinessunits,whilealsoleadingthebroaderAItransformationoftheentireenterprise,whichhasmassiveworkforceand

talentimplications.

•Buildworkforceandleadershipcapabilities.Ina

changingbusinessenvironment,CHROsmustdevelop

peoplecapabilitiesatalllevelstohelpthecompanywininthemarket.Successrequiresdevelopingaskills-basedstrategy,explicitlylinkedtobusinessoutcomes,and

rethinkingskillsandroles.

•Anchorthechange.Finally,CHROsneedtoensure

thatchangestakeroot.Thatrequiressettingclear

governanceandoperatingrhythms,embeddingnew

behaviorsintoperformancemanagementschemes,andcreatingacultureofaccountability.

Thereportincludescasestudiesofcompaniesputting

theseideasintoaction.Theyillustratethatwiththerightapproach,CHROsandtheirteamscanevolvefroma

supportfunctiontoadriverofoutsizedbusinessvalue.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO3

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO4

Introduction

CHROsandtheirteamsfacearangeofchallengesrightnow,makingithardtoknowwheretofocustheirtime

andattention.Disruptionanduncertaintiesareemergingthatdrivebothoutsizedopportunitiesandchallenges.

AI,andespeciallyagenticAI,isreshapingprocessesand

workstreams.Talentistougherthanevertorecruitand

retain.Businessesareevolvingtheirstrategiestowin

inthisenvironment,whichrequiresshiftingresource

allocations,bolsteringandbuildingnewcapabilities,and

pullingbackfromless-attractiveareas.CHROsandtheir

teamsneedtobeattheforefrontofhelpingleadersdeliverontheirambitiousbusinessagendas,throughfit-for-

purposepeoplestrategiesandmatchingHRcapabilities.

Since2007,BCGandtheWorldFederationofPeople

ManagementAssociations(WFPMA)havetrackedthe

evolutionofHRpriorities.OurCreatingPeopleAdvantagereportsovernearlytwodecades,includingtheprevious

editionin2023,constitutethelargestandlongest-runningglobalstudyonHRpriorities.TheytracethechangingroleofHRfromfunctionaladministratortostrategicpartnertocreatorofnewvalueforthebusiness.(Seethe

Appendices

fordetailsontherespondentbaseandmethodology

.)

Thisyear’ssurveydrewresponsesfrommorethan7,000

HRandbusinessleaders,spanning115countriesand

administrativeregions,withdatafrom25differentindustries.

•Weranked28peoplemanagementtopicsbytheirfutureimportanceandcompanies’currentcapabilities,to

identifythemosturgentareasforaction.

•WeconductedthreedeepdivesonHRpriorities:leadingthedigitalandAItransformation,buildingworkforce

andleadershipcapabilities,andcreatingoutsizedbusinessvalue.

•Basedonthatanalysis,wedevelopedpractical

recommendationstohelpHRleaderstranslatethese

insightsintoimprovedorganizationalperformance.A

centralthreadthroughourreportistheneedforHR

leaderstogrowintermsofbothbusinessanddigital

acumen.Theyneedtocomplementtheirdeepfunctionalexpertisetomeetthecurrentpeoplechallengesand

bettercreatebusinessvalue.

Theresultsmakeoneconclusionclear:HRisnolongeranenablingfunctionbutadriveroftransformationandvaluecreation.LeadingCHROsarepartneringdirectlywithCEOstosteerenterprisestrategyandsupportbusinessleaders

inexecutiontocreateoutsizedreturns.EveryHRteam

shouldseektoearnandfulfillthisrolewiththeirCEOsandleadershipteams.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO5

Today’sHRPriorities

Ouranalysisassesses28people-managementtopics,

measuringeachbyrespondents’self-reportedcapabilityinthattopicandhowtheyviewitsfutureimportance.This

approachprovidesbothasnapshotofthepresentanda

viewofwheretheHRagendaisheadingoverthenexttwotothreeyears,givingHRleadersaclearviewofthemostcriticalcapabilitygapstheymustaddress.

•HRleaderssaythattraditionalHRtopicsarestillthemostimportant.Rankingthe28topicsbytheir

futureimportance,peopleandHRstrategyremains

atthetop,reflectingpressuretotranslateheadcount

intocapabilityandskillscapacity.Strategicworkforce

planningandleadershipdevelopmentareclosebehind.Recruitingandonboardingandtalentmanagementandsuccessionremainelevatedaswell,underscoringhowthecompetitionforscarceskillsisadefiningconstraint.(See

Exhibit1

.)

Thetopicthatshowedthebiggestincreaseisdigital

solutions(suchasHRprocessautomation),jumping13ranksto12thinthelatestanalysis.HRleaders

increasinglyexperiencepressuretoutilizedigitalto

automate,deliveranalyticalinsights,andoffera

seamlessemployeeexperience.Ratherthanbeinganobjectivethemselves,digitalandAIareameanstoanendforHR,streamliningworkflowsandhelpingteamssupportthebusinessmoreefficientlyandeffectively.

Employee-centricthemessuchasengagementand

purposeremainhighlyratedaswell,yettheirmovementinrankingssuggeststheyarebecomingfoundational

ratherthandifferentiatingfactors.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO6

EXHIBIT1

HRPrioritiesShiftTowardWorkforceCapability,TalentInfrastructure,

andDigitalEnablement

FutureimportancerankingResponsesof“high”or“somewhathigh”(%)

2023

ranking

Rankingchange

1

PeopleandHRstrategy

47

37

841

0

2

Strategicworkforceplanning

41

3980

5

3

3

Leadershipdevelopment

43

3780

2

–1

4

Employervalueproposition

39

3978

4

0

5

Recruitingandonboarding

39

3978

9

4

6

Purposeandcultureactivation

38

3977

6

0

7

Upskillingandreskilling

38

3977

7

0

8

Talentmanagementandsuccessionplanning

37

4077

15

7

9

Performancemanagement

36

4076

10

1

10

Employeeengagementandwell-being

40

3676

3

–7

11

Employeerelations

34

40

74

12

1

12

Digitalsolutions(e.g.,HRprocessautomation)

36

37

73

25

13

13

Organizationaldevelopmentanddesign

32

40

72

18

5

14

Rewardsandrecognition

32

41

72

8

–6

15

Peopleanalyticsandreporting

35

37

72

16

1

16

HRcostandimpactsteering

33

39

72

N/A

N/A

17

Healthandsafety

38

34

72

11

–6

18

HRstaffcapabilities

32

39

71

13

–5

19

HRITarchitecture,software,anddata

33

38

71

14

–5

20

Policymanagement

30

39

69

22

2

21

HRorganizationandgovernance

28

40

68

20

–1

22

DeploymentofGenAIandotheremergingtechnologies

34

31

66

27

5

23

Transformationmanagement(includingrestructuring)

29

36

64

21

–2

24

Flexibleworkschemes

28

35

63

17

–7

25

Diversity,equity,andinclusionmanagement

26

36

61

19

–6

26

Staffingandmobilitymanagement

24

37

61

24

–2

27

SustainabilityandESG

27

32

59

23

–4

28

HRsharedservices

23

35

58

26

–2

+3ppdifference–3ppdifferenceHighimportanceSomewhathighimportance

Source:2026BCG/WFPMAproprietarywebsurveyandanalysis(n=7,115).

Note:“Other”and“N/A”responsesarenotincludedinthisoverview.Becauseofrounding,notallsectorpercentagesaddupto100%.The2023topicrankingwasrecalculatedbasedontheaveragepercentageof“high”and“somewhathigh”responsesconsideringmergedtopics.

•Digitalcapabilitiesandinnovationarelacking.In

oursecondsetofrankings,whichlooksatthesame28

HRtopicsbycurrentcapabilitylevels,companiesremainstrongincomplianceandemployeerelations,aswell

asrecruitingandonboarding.(See

Exhibit2

.)Strategicareassuchasstrategicworkforceplanningandpeople

analyticsandreportingshowsteadyprogressbutarestilllowerthantheirstatedimportanceinthefirstranking.

Thegreatestdeficitliesindigitalfluencyandanalyticsmaturity.ManyHRfunctionshaveinvestedheavilyinsystems,yetfewhavebuilttheskillsordataculturetotranslatethosesystemsintoinsightanddecision

support.Thisechoesbroaderfindingsthatwhile

companiescontinuetomakesizableinvestmentsindigital,onlyasmallsharetranslatesolutionsinto

sustainedbusinessvalue.

EXHIBIT2

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO7

CapabilitiesLagBehindinFuture-CriticalTopics,withLimitedProgressinDigitalandAI

2023

ranking

Ranking

CurrentcapabilitiesrankingResponsesof“high”or“somewhathigh”(%)

change

1

Healthandsafety

23

3356

1

0

2

Employeerelations

18

3654

2

0

3

Policymanagement

19

3251

3

0

4

Recruitingandonboarding

15

3550

12

8

5

Employervalueproposition

16

3147

5

0

6

PeopleandHRstrategy

16

3147

4

–2

7

Purposeandcultureactivation

16

2844

7

0

8

Employeeengagementandwell-being

14

2944

8

0

9

Flexibleworkschemes

14

2842

6

–3

10

Performancemanagement

14

2742

9

–1

11

HRstaffcapabilities

10

3141

10

–1

12

HRcostandimpactsteering

12

2840

N/A

N/A

13

Leadershipdevelopment

13

2639

14

1

14

Upskillingandreskilling

13

2639

16

2

15

Strategicworkforceplanning

12

2739

17

2

16

Diversity,equity,andinclusionmanagement

12

2638

15

–1

17

HRorganizationandgovernance

12

2638

11

–6

18

Organizationaldevelopmentanddesign

13

2537

18

0

19

Rewardsandrecognition

11

2637

13

–6

20

SustainabilityandESG

11

2435

24

4

21

Peopleanalyticsandreporting

10

2535

21

0

22

HRsharedservices

9

2433

19

–3

23

Talentmanagementandsuccessionplanning

10

2333

22

–1

24

Transformationmanagement(includingrestructuring)

9

2332

20

–4

25

HRITarchitecture,software,anddata

9

2131

23

–2

26

Staffingandmobilitymanagement

7

2230

25

–1

27

Digitalsolutions(e.g.,HRprocessautomation)

9

2129

26

–1

28

DeploymentofGenAIandotheremergingtechnologies

616

22

27

–1

+3ppdifference–3ppdifferenceHighcapabilitiesSomewhathighcapabilities

Source:2026BCG/WFPMAproprietarywebsurveyandanalysis(n=7,115).

Note:“Other”and“N/A”responsesarenotincludedinthisoverview.Becauseofrounding,notallsectorpercentagesaddupto100%.The2023topicrankingwasrecalculatedbasedontheaveragepercentageof“high”and“somewhathigh”responsesconsideringmergedtopics.

•Urgentpriorities:the2026“need-to-act”matrix.

Thematrixcombiningcurrentcapabilitieswithfuture

importancehighlightsthebiggestgapsandthetopics

whereCHROsneedtofocustheirefforts.(See

Exhibit3

.)Specifically,twoclustersoftopicsshouldbecome

prioritiesforCHROs.

Thefirstisleadinginatwo-speedworld:supportingtheAIanddigitaltransformationacrossthebroader

enterprise,whilealsodrivingtheirownprocessestodeliverbetter,faster,andmoreaccurateservicesatlowercoststhroughdigitizationandAI.

ThesecondcorepriorityforCHROsisbuildingworkforceandleadershipcapabilities.Thisincludestalent

managementandsuccession,leadershipdevelopment,

strategicworkforceplanning,upskillingandreskilling,andpeopleandHRstrategy.Thesecapabilitiesensurethat

companieshavetherightskillsandleadershipbehaviorsinplacetotransformandcapitalizeontechnology.

Together,theseclustersformtheagendafor2026.

CHROswhoconnectbothwilladvanceHR’scontributionfromfunctionalexcellencetoenterprise-levelvalue

driver.Inthenextsection,wewilldiscussthesethreetopicsinmoredetail,startingwiththemostimportanttopic:howCHROscancreatemorebusinessvalue.

EXHIBIT3

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO8

Sortingthe28TopicsbyCurrentCapabilitiesandFutureImportanceIdentifiestheBiggestPrioritiesfortheHRFunction

High

FUTUREIMPORTANCE

Low

High

CURRENTCAPABILITIES

26

16

28

20

27

25

24

23

22

9

4

5

1B

17

1A2

3

8

6

11

10

19

7

12

13

15

Low

18

14

21

Strongneedtoact

2

Talentmanagementand

successionplanning

Digitalsolutions(e.g.,

HRprocessautomation)

4

Strategicworkforce

planning

Leadership

development

6

HRITarchitecture,

software,anddata

Upskillingandreskilling

8

Peopleanalyticsandreporting

1A

DeploymentofGenAIandotheremergingtechnologies(large

companies)1

3

5

7

Mediumneedtoact

1B

DeploymentofGenAIandotheremerging

10

Rewardsand

recognition

14

Transformation

management(including

17

Staffingandmobilitymanagement

21

Recruitingandonboarding

9

technologies(small

andmedium-sized

enterprises)1

PeopleandHRstrategy

11

Organizational

developmentanddesignPerformance

management

Purposeandcultureactivation

15

restructuring)

Employeeengagementandwell-being

HRcostandimpactsteering

18

Employervalueproposition

HRorganizationandgovernance

HRstaffcapabilities

26Employeerelations

12

19

16

13

20

Lowneedtoact

22

23

HRsharedservices

SustainabilityandESG

24

25

Diversity,equity,andinclusionmanagement

Flexibleworkschemes

27Policymanagement

28Healthandsafety

Source:2026BCG/WFPMAproprietarywebsurveyandanalysis(n=7,115).

Note:Rankedbyhighestnumberofresponsesin“high”and“somewhathigh”categories.

1DeltacalculationforGenAIdeploymentsplitbycompanysizeduetosignificantdifferences.Largecompanieshaveatleast5,000employees;smallandmedium-sizedenterpriseshavefewerthan5,000employees.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO9

HR’sRoleinCreatingBusinessValue

Ultimately,companiesmeasurethesuccessoftheHR

functionbythevalueitcreatesforthebusiness,notthevolumeofactivityitdelivers.Inoursurvey,65%ofseniorleadersviewHRasakeybusinessenabler,yet51%citeadministrativeloadastheprimarybarriertothefunctionmakingamorestrategiccontribution.

Tocreateoutsizedvalue,HRfunctionsmustalignclosely

withbusinessleadersandtheiragendas,evenasdemandsonefficiencyandoperationalexcellenceconstantly

increase.Forexample,automationandsharedservicescanmakeprocessesmoreconsistent,improvetheemployee

andmanagerexperience,andfreeupHRcapacitytoplayamorestrategicroleinshapingbusinessperformance.Morebroadly,HRleadersneedtolinkthecompany’speople

strategydirectlytoinnovation,productivity,andfinancialperformance,inwaysthatdelivertangibleresultstothebottomline.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO10

FocusonbusinessmetricsoverHRmetrics.Tohelpcreatemeasurablevalue,HRteamsneedtodeeply

understandthebusinessandwhatdrivessuccessful

executionofbusinesspriorities.Todoso,HRmustmovebeyondtraditionalmetricssuchastime-to-hireor

engagementscoresandquantifyhowtalentdecisionsdirectlyaffectprofitability,growth,andinnovation.Thismeanstranslatingworkforceanalyticsintopredictive

insightsthatanticipatebusinessneeds,identifyopportunities,andguideresourceallocation.

Measurecapabilityvaluetogaugethebusiness

impactofupskilling.Capabilityvalueisakeymetricfor

assessingthebusinessimpactofupskilling.Definedasthemeasurablevaluecreatedbyinvestmentsinskills,reskilling,andlearning,itlinksworkforcecapabilitiesdirectlyto

outcomessuchasproductivitygains,fasterspeedto

mastery,improvedretention,andprogressagainststrategicprioritieslikeAIanddigitaltransformationandgrowth.

Capabilityvaluerequiresorganizationstodefinethe

intendedbusinessimpactofupskillinginitiativesupfront,

trackoutcome-orientedandinterimmetrics,andassess

whetherthatimpacthasbeenachieved.Leading

organizationsusecapabilityvalueasaperformancemetrictoelevateupskillingfromacosttoastrategicinvestment,makingthecontributionofHRtoenterpriseperformanceexplicitandmeasurable.

Investinpeopletoimproveretention.Inourdata,

organizationsthathavethehighestcapabilitiesinemployee-centricareasreportlowerturnover.(See

Exhibit4

.)Theseincludetopicslikeemployeeengagementandwell-being,

recruitingandonboarding,andsustainability—aclearsignalthatinvestinginpeopleyieldsdividends.

EXHIBIT4

CompanieswithStrongerEmployee-CentricCapabilitiesTendtoHaveLowerWorkforceTurnover

Annualemployeeturnoverrate(%)bycapability

LowcurrentcapabilityHighcurrentcapability

–5.3pp

–3.3pp–3.1pp

16.2

10.9

14.8

11.5

14.6

11.5

Employeeengagementandwell-being

Recruiting

andonboarding

SustainabilityandESG

Sources:SPSSmultiplelinearregressionanalysisusingthe2026CPAdataset;BCGanalysis.

Note:Dependentvariable:Annualemployeeturnoverrate(%).Modelstatisticallysignificant,F(28,3380)=13.65,p<.001,R²=0.102(Adj.R²=0.094),

N≈3,409.AlthoughthemodelidentifiesseveralHRcapabilitieswithmeaningfulassociationstoturnover,theoverallexplanatorypowerremainsmodest,indicatingthatturnoverisalsodrivenbybroaderorganizationaldynamicsandexternallabor-marketconditions.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO11

Makehiringasuperpower.Organizationswithstrongcapabilitiesinplanning,analytics,mobility,andemergingtechfillcriticalrolessignificantlyfasterandbetter.(See

Exhibit5

.)Thesehigh-capabilityteamscuttime-to-fillby

roughly17to18daysonaveragecomparedtopeers.

Anecdotally,thebesttalentacquisitionteamsarenotonlyfaster,butbetteratmatchingrecruitedindividualsto

businessneeds.

EXHIBIT5

StrongerCapabilitiesinPlanning,Analytics,Mobility,andEmerging-TechLeadtoFasterHiringProcesses

Averagedaystofillcriticalrolesbycapability

LowcapabilityHighcapability

54

49

32

DeploymentofGenAIandotheremergingtechnologies

55

38

Strategic

workforceplanning

36

HR

sharedservices

–17

–17

–18

Source:SPSSmultiplelinearregressionanalysisusingthe2026CPAdataset.

Note:Dependentvariable:Averagedaystofillcriticalroles.Modelstatisticallysignificant,F(28,3602)=6.04,p<.001,R²=0.045(Adj.R²=0.037),N≈

3,631.Themodeldemonstratesastatisticallyreliablerelationship,thougheffectsizeremainsmodest,suggestingtime-to-fillisinfluencedbyabroadersetoforganizationalandmarketfactorsbeyondtheHRcapabilitiescapturedhere.

BOSTONCONSULTINGGROUP+WFPMAFOURPOWERMOVESFORTHECHRO12

LeadingtheDigitalandAITransformation

Acentralthemeinthisyear’sreportistheneedforCHROstomovefasterintermsofimplementingdigitaltechnology.ThisisthecasebothwithintheHRfunctionanddriving

thepeopleelementsofdigitaltransformationacrossthebusiness,inareasincludingupskilling,adoption,and

designingnewwaysofworking.

GenAIembodiesthischallenge.Nearly70%ofrespondents

useGenAIinsomecapacity,mainlyforreporting,learning,

andrecruiting.However,only38%ofrespondentsindicate

highorstrongrelevanceofGenAIfortheirorganizationtoday.(See

Exhibit6

.)Wealsofoundthat50%oforganizations

expectagenticAItohavehighortransformationalimpactontheirorganizationsinthefuture.Thisisinstarkcontrastwith

otherBCGresearch

,inwhich90%ofCEOsbelievethatAIwillshapetheirindustriesandasimilarportionofCEOs

planstofurtherincreaseAIinvestments.ThatCEOsentimentshouldbeacalltoHRleaderstofurtherleanintotheAI

agendaoftheirorganizationsanddefinethepeopleagendatosupportit.

Overall,onlyasmallminorityinHRteamsinourstudy

havescaledGenAIacrosstheirHRorganization,forseveralreasons.(See

Exhibit7.

)

•DataPrivacy.Amongrespondents,51%sayconcernsaboutdataprivacyorcompliancearethegreatest

barrierstotheintroductionofGenAI,morethanany

otherfactor.However,32%saytheirorganizationhaslimitedornoprocessesinplacetomeasuretheriskofGenAIuse.

•TechnicalSkills.Companiesalsopointtoalackof

institutionalcapabilitiesasahurdletoGenAIadoption.Peoplewhohavestrongtechnologyexpertisetendto

workinotherfunctions,andtheyarein-demandacrosssectorsrightnow,makingthemdifficultforHRleaderstosource.

•UncoordinatedPilots.Onechallengeisthesheernumberofapplicationsandofferings—withnew

offeringscomingontothemarketallthetime.

Organizationsoftenlaunchmultipleuncoordinatedpilotsratherthanfocusingonacomprehensivesetoflinked

initiatives.Companieswithlarge

frontlineworkforces

arenotablybehindinthisregard,oftenbecauseofthe

organizationalchallengeofputtingthetechnologyinthehandsofalargeworkforce.1

1.Frontlineindustriesarethosewheremostemployeesworkinphysical,operational,orcustomer-facingenvironments,withlocation-dependent,

hands-onrolesandlimitedrelianceondesk-baseddigitaltools.Incontrast,knowledgeindustriesarethosewheremostemployeescreatevalue

primarilythroughco