How AI and Workforce will Intersect: Navigating Risks and Opportunities

AI Revolutionizes Workforce Dynamics and Skill Demands

Human resources is at the forefront of artificial intelligence (AI) utilization, pioneering advancements that blend technology with human insight. Teams are already using AI to optimize a host of processes, including the automation of tasks like interview scheduling, onboarding and addressing employee requests. HR professionals are generating tailored reward packages, updating recommendations in real-time, managing learning paths and creating interactive skill development simulations.

"AI may not replace HR professionals, but those with AI skills will have an advantage over those without,” says Ernest Paskey, head of Workforce Transformation Advisory at Aon. “The challenge for companies is acquiring these skills quickly." 

To date, most organizations have concentrated their use of AI on making these incremental improvements to optimize existing processes rather than reimagining how they could operate. However, as AI capabilities advance over the next five years, these organizations will likely shift to reinventing entire workflows and job functions.¹ 

Changing Job Roles and Skill Requirements

As AI continues to evolve, the role of HR professionals is also changing, requiring certain new technical skills. While AI may automate some tasks, it also creates new roles such as a prompt engineer, whose job is to design prompts to test model language. Other emerging HR skills include advanced analytics, data-driven decision making, computer science, machine learning and statistical analysis.

Future HR roles will require a blend of technical skills to interact with AI and the ability to work alongside AI in a “digital labor” model. Additionally, there will be a greater emphasis on critical thinking, emotional intelligence and fact-checking to ensure that human oversight remains integral to any process.

While some HR jobs are emerging within new workstreams, others are entirely new positions, such as an AI Ethics Leader or HR GPT Designer, who is responsible for creating custom agents.² These jobs of the future demonstrate that integrating AI into HR is transforming the profession into one that includes a blend of technology and traditional roles to enhance efficiency and strategy.

The Need for Upskilling and Reskilling

As the demand for digital skills continues to surge, businesses now face the unprecedented expectation that every employee, regardless of their role, will soon need a baseline proficiency in AI. This shift is unlike any previous business-wide requirement, and comparable to adopting company values across the board. Investing in workforce development is essential to keep pace with technological changes.

A growing emphasis on continuous learning, upskilling and reskilling programs has enabled companies to better anticipate and manage future skill requirements. Reskilling is gaining more traction than upskilling due to AI-driven role changes, but most organizations aren’t building talent quickly enough to keep pace with these changes. Initiatives for AI-related skills should be targeted and tailored to different roles, such as a C-suite strategy session versus a call center training approach.

“Organizations have yet to fully understand the necessary steps for upskilling and reskilling in the context of AI’s impact on specific roles,” adds John McLaughlin, chief commercial officer and partner in Aon’s Health Solutions practice. “A one-size-fits-all approach to interventions in the AI landscape may ultimately be counterproductive.”

Risks and Ethical Considerations

Organizations are currently exercising caution by not solely relying on AI for certain things, such as determining pay ranges and making compensation decisions. Instead, AI serves as a valuable data point that feeds into a primarily human-driven decision-making process, ensuring balanced and fair outcomes. For high-stakes decisions like pay, it is even more important to be transparent about its usage and accuracy, as there is simply less room for error. Documenting its role is especially important when it impacts individual outcomes, as it can help alleviate concerns and justify decisions.

In addition to high-risk use cases, data protection remains a critical concern.³ AI systems require vast amounts of data to function effectively, raising issues around how this data is collected, stored and used. Unregulated use of AI can lead to data breaches and unauthorized access to personal information, necessitating powerful data protection measures. Many employees are also using AI tools independently on their own devices, further complicating the oversight of AI usage.

Internally, AI ethics leaders will lead the charge to ensure that AI is integrated responsibly and ethically. More broadly, governance strategies are also necessary to minimize risks and optimize opportunities. These strategies should be regularly updated to adhere to the evolving regulatory landscape and include clear guidelines and oversight to maintain accountability and fairness.

The Global AI Talent Market

The global demand for AI talent is immense, with organizations competing fiercely to attract and retain skilled professionals. AI skills command a significant premium, making it challenging for regions to keep pace. The U.S. is currently leading in AI talent acquisition, with substantial investment and demand driving the market. “Every country except for the U.S. is a net exporter of AI talent,” McLaughlin notes. To address these disparities, organizations must focus on developing their own AI talent.

Companies can gain a competitive advantage by considering the following approaches: 

• Invest in education and training programs to cultivate AI skills internally. 
• Offer attractive compensation packages to attract top talent. 
• Create inclusive workplaces that support ongoing learning and development.

Promoting a culture of continuous learning is crucial to ensure the development of future leaders. By fostering an environment that values cognitive skills, creative and analytical thinking, technological literacy, curiosity and lifelong learning, employers can prepare their workforce for the challenges and opportunities of the AI age.

4 Ways to Establish a Strong AI Foundation:

Here are four strategic actions to help businesses get started on making the most of their AI journey:

1. Assess AI-related capabilities in the business. Employers should evaluate the existing level of AI skills among employees and acknowledge that some existing members of the workforce may already possess considerable readiness for AI implementation. 
2. Consider the potential of AI in HR. Investigate how AI can be implemented across different HR functions, pinpointing areas where AI can enhance processes. Evaluate methods by which AI might be used to help reimagine current procedures. 
3. Establish AI use cases. Develop use cases through a combination of strategic direction from leadership and insights gathered from employees. Identify specific areas where AI can enhance efficiency and establish criteria to evaluate its implementation. Clearly delineate the current responsibilities performed by various roles and assess how these roles may evolve with the introduction of generative AI. 
4. Develop a comprehensive AI strategy. Create a governance framework to address potential risks and opportunities offered by AI. It is essential to integrate change management processes and develop transparent communication plans. Additionally, consider how AI impacts compensation and decision-making processes to ensure smooth implementation and adoption. 

Aon's Capabilities

¹ 10 HR Trends As Generative AI Expands In The 2025 Workplace, Forbes
² 10 HR Trends As Generative AI Expands In The 2025 Workplace, Forbes
³ 10 AI Dangers and Risks and How to Manage Them, IBM