What is HR’s role in injecting human leadership into the age of AI?
HR will be tasked with helping the organization, its leaders, and its people thrive in the AI age. Technology adoption may be the goal, but humanity must remain at the core, writes McKinsey Partners in this exclusive UNLEASH OpEd.
HR Expert Insight
The only certainty in the workplace is uncertainty - and organizations need to bear this in mind as they adopt and implement AI.
In this exclusive OpEd, two McKinsey Partners in the People & Organizational Performance practice share why HR leaders are in a unique position in this AI-powered world.
Here's how they can avoid common traps with AI, and rethink leadership to ensure humans are always at the center.
It may be more challenging to be a leader today than at any other point in history.
Business is increasingly complex, and leaders must constantly manage polarities and frequent, unanticipated disruptions, persistently keeping them ‘on their toes’.
The only certainty is uncertainty, and leaders who seek simplicity are turning to technology as a potential solution.
However, this also makes it even harder to anchor organizations and leadership in humanity.
HR leaders are in a unique position.
They feel these pressures themselves, while being simultaneously tasked with providing resources to help other leaders—and the entire organization—navigate these challenges and complexities.
The most inspiring HR leaders have always been central to developing talent and designing ways of working that unleash value, while preparing leaders to thrive.
As organizations explore technologies like artificial intelligence (AI), HR is expected to keep ahead: helping others make smart choices, navigating organizational adoption, using technology to build a more capable and high-performing organization, and building talent that is well positioned to succeed in this environment.
Understanding AI’s leadership traps
In contrast to the complexity of business today, AI offers seemingly easy, straightforward answers with the typing of a few keys.
The allure of new technology caters to a natural tendency to look for easier ways to navigate challenges.
Humans love ease; the human brain is wired to prefer simple solutions.
However, the nature of AI means that these simple answers are often inspired by solutions to problems of the past—and may not necessarily be appropriate for addressing the novel complexity that organizations now encounter.
This reflex can also risk loss of nuance, invite black-or-white thinking and polarization, and deepen biases. Decisions can become driven, not informed, by data.
These are technology challenges, but they are even more so cultural—and ensuring the organization gets ahead of them falls within the HR leader’s purview.
Supporting fellow leaders through this change will require an uplift in technology skills and a different approach to leadership that puts humanity at the core.
Taking a human-centric approach in the world of AI
As economist Andrew J. Scott said: “As machines get better at being machines, humans have to get better at being more human.”
Amid increasing volatility, uncertainty, complexity, and ambiguity, and as technology begins to play a new role in organizations, leadership styles must shift.
The ‘imperial leader’ of the past is being replaced with a more flexible, human-centric approach that adapts to an organization’s current needs and contexts and holds complexity in stride.
Research shows human-centric leaders are the essence of an organizational culture that prioritizes employee wellbeing, inclusivity, diversity, and continuous learning and development.
Human-centric organizations are found to be healthier both culturally and financially. They are 2.4 times less likely to show signs of financial distress, 1.5 times more likely to retain their employees, demonstrate stronger performance, and have a greater sense of purpose.
Facilitating a human-centric approach, while preparing the organization to make the most of AI, will require equal investment in people and performance—with HR in the lead.
How AI will evolve HR’s role
HR is on the frontline of AI transformation.
They are responsible for deploying skill-building programs to enable the workforce to use these tools effectively and responsibly.
They are instrumental in coaching others on their own leadership journey, including leadership of technology. They are the engine for building community, culture, connectivity, and belonging, while using AI to streamline their own ways of working and improve the employee experience.
And, in some cases, HR fulfills the need for role modeling to inspire the broader organization.
HR also has a lot to gain from these responsibilities.
For instance, deploying technology and building tech-savvy talent will in turn unleash capacity that can be invested throughout the rest of the organization.
Like others in the C-suite, a human-centric, ‘inside out’ approach to leadership will prove critical for HR leaders in managing the complexity they face.
Here are some key considerations to get started.
Improving Yourself First
HR must become a beacon of the organization’s leadership approach in the age of AI.
They have to role model the mindset and behavior changes that they wish to see more broadly. They also must redefine the function itself through the vision of technology.
To manage technological adoption and change, while enabling themselves and others to hold complexity and push past simple answers, HR leaders must be well versed in the business, its people, and the technology that is used.
They must determine what the HR function should look like and how it should operate within this new context.
The leaders who do this well also spend time on themselves, continuously learning and seeking to lead with curiosity.
HR leaders should make space for self-exploration and introspection.
Taking an ‘inside out’ leadership approach involves learning more about how one reacts—and wants to show up—in certain situations.
By drawing upon introspection, HR leaders can develop and nurture a “north star” grounded in human values and principles to guide their decision making.
They should lean into integrity and courageous authenticity.
Embracing this ethical compass can help them make data-informed decisions with full consideration given to the implications for people, enabling the organization to attract and retain the best talent.
Creating space for connection
HR also plays a crucial role in creating a social web of relationships and the mechanisms for connection among colleagues.
There are formal components to this, such as making strategic investments in leadership development and culture-building opportunities.
There are also informal measures, like connecting with colleagues beyond transactional, project-based interactions.
Both can help strengthen relationships and encourage team members to embrace new challenges together.
What’s more, these connections boost productivity and innovation.
As technology and AI become more integral to work and everyday life, it’s also important to protect spaces for human interactions and constructive dissent.
HR is in a unique position to empower teams to re-imagine their ways of working and their relationship with technology.
HR leaders can build an organizational culture that values resilience, adaptability, and innovation—while holding space for complexity.
Leading technology before it leads you
All workers need to develop an understanding of technology’s potential and how to capture its value in ethical and socially responsible ways.
This can be accomplished through organization-wide capability building, overseen by HR.
HR leaders are best equipped to help differentiate the levels of knowledge that are required by various functions and roles within the organization.
They can also help reduce employee anxiety about change and increase awareness of the powerful advantages of appropriate technology use.
Leading by example can be beneficial. For instance, using AI chatbots to answer company-related questions can help familiarize employees with the technology while contributing to a positive employee experience.
HR leaders must also invest in technology adoption within the function and build fluency in new capabilities.
Ultimately, the goal of this work is to build a more capable, high-performing organization that captures more value.
HR should be at the center, shaping mindsets, infrastructure, and culture to support the constant learning and curiosity required to sustainably stay ahead.
Conclusion
The AI age requires a different approach to leadership, including in HR.
HR leaders sit at the nexus of helping their organization harness technology’s power, while leaning into the human characteristics that provide critical balance.
Taking an ‘inside out’ approach can help HR leaders—and an organization’s leaders more broadly—navigate choices around usage of technology, including AI.
After all, only humans can instill the purpose that shapes how technology is applied to truly simplify the modern workplace.
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Parnter
Sandra Durth is a leader in McKinsey’s People & Organizational Performance Practice.
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Senior Partner
Dana Maor is also the global cohead and European leader of McKinsey’s People & Organizational Performance Practice.
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