PwC: Agentic AI lies at the center of the future of work and HR leaders need to be in the driving seat

The future of work may very much depend on AI, but the role of agentic AI may just transform the very fundamentals of how work is done.

Within the coming 12-24 months, AI agents are predicted to revolutionize business operations and workforces through the ability to make strategic decisions and actions at a far higher pace and scale than ever before.

HR technology vendors have started rolling out the initial waves of AI agents to market, but success in this area for user organizations won’t rely on the technology alone – it requires an understanding of how to position AI at the center of the business.

Speaking exclusively to UNLEASH, Anthony Abbatiello, Workforce Transformation Leader, Partner, at PwC US, says an understanding of the core business model, and how AI interacts with that, is an imperative starting point to transitioning to an AI-native approach.

“You have to look at the work. When we talk about the future of work, we always say it's the work, the workforce and the worker,” Abbatiello explains.

When you’re AI-native, or digital-native, you can start with the technology – not look at what skills are being replaced or what upskilling you need, but rather start with where technology will play, where agents will play, where humans will play.”When you’re AI-native, or digital-native, you can start with the technology – not look at what skills are being replaced or what upskilling you need, but rather start with where technology will play, where agents will play, where humans will play.”

He adds that this type of transition is markedly different to adaptations to technology innovations that have come before, such as “the days of SAP, or the large ERPs” which were “very top down, it was very structured.”

The agentic AI era is giving HR leaders a chance to shine...

With agentic AI, Abbatiello believes there is a “different expectation”, as CHROs are looking at it in “a way that is iterative, it’s learning, it’s starting with the process” – in essence, a more democratized approach.

“For CHROs and CPOs alike, this is an opportunity for them to really shine and be the hero, because they ‘own’ the workforce. They should be coming at this with the CTO and CFO, and saying: Where can work be disrupted using AI and agentic AI?” Abbatiello says.

HR leaders should also be looking at where “more efficiency, more performance, higher quality” can be realized across the entire business rather than just their own function, he adds.

I think that is where most CHROs that I've talked to are kind of stumbling, on doing it for the function and not thinking about their role in doing it for the enterprise.”I think that is where most CHROs that I've talked to are kind of stumbling, on doing it for the function and not thinking about their role in doing it for the enterprise.”

One boon for HR leaders already based an AI-native environment is that the culture surrounding AI doesn’t have to be built from scratch; it is an intrinsic starting point of the organization.

However, that doesn’t mean CHROs can sit back. Abbatiello states that the focus must be to ensure a state of “continuous evolution”, driving the workforce to “continue to skill, and adopt and build AI literacy, to grow and challenge the work that they're delivering.”

“CHROs are really about shaping the culture, the mindset and the values around what this shift is,” he details.

“It's more about gardening than engineering. It's really about creating space for experimentation, modeling curiosity and responsibility with AI, setting guard rails of what's fair game and what's not, and then encouraging a culture of learning, questioning and adaptation. It’s moving from a ‘Command and Control’ approach to ‘Guide and Grow’.”

...but they must be proactive in driving success

One of the key areas of focus for HR leaders in the AI era will be ensuring workforces are equipped with the right skills to thrive.

AI is likely to transform which skills employees need in the new world of work and Abbatiello says he views it as a “knowledge point.”

“The skill to build agents and know where to use them is what the knowledge point that workers will need,” he explains.

“Where AI is autonomous and agentic, that's where it's a knowledge point. I think the skill point comes in augmenting how workers use it to do their job better. There's new skills around - if you're a human who manages agents and humans, or just agents, that's a new job.”

However, Abbatiello also highlights a belief that there isn’t “enough awareness about agentic AI.”

“Getting that awareness and democratizing that knowledge down to the ranks is key in our Workforce Radar Report,” he adds, referencing PwC research that found daily Gen AI use is currently dominated by executives (76% at director level) compared to workers at an individual contributor level (20%).

“The companies that will win and are winning more are the ones where they've democratized that knowledge,” he states.

We have this rule of three: If you do something that is repetitive three times in the same manner, then that is ripe for disruption with generative AI. Make that rule for your team and then find ways they should be doing it, instead of thinking about massive transformation.We have this rule of three: If you do something that is repetitive three times in the same manner, then that is ripe for disruption with generative AI. Make that rule for your team and then find ways they should be doing it, instead of thinking about massive transformation.

“I do believe agentic AI will be a massive transformation, but starting at that level is much more effective,” Abbatiello concludes.

Want to learn more about how the future of work will be shaped by agentic AI?

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