What HR must do about AI (before panic sets in) - May 12, 2025

Good day, HR Rockstars! 🤘 AI’s evolving fast, but it still can’t replace real human insight. This Learning at Work Week, let’s talk upskilling and leading with empathy.

On today’s agenda:

• ⚡ What HR must do about AI (before panic sets in)

• 💪 Today’s culture cue — support Employee Health & Fitness Month

• 🧠 How to FIX workplace psych contract shifts

• 😬 IBM replaces 100s of HR staff with AI…

• 💭 Is your company truly ethical, or just checking boxes?

• 👇 Dive in below and lead with clarity…

THE HR SPOTLIGHT

What HR Must Do About AI (Before the Panic Sets In)

It’s Learning at Work Week, and while AI tools are getting smarter, your people are getting… anxious. With rising fears about job displacement, HR has a unique task to replace uncertainty with clarity.

The Problem: A recent survey shows that 46﹪ of workers fear their skills will become obsolete within five years due to AI. Real-world examples are fueling these concerns:

• IBM paused hiring for ~7,800 roles that could be replaced by AI (Bloomberg).

• Duolingo is shifting to an "AI-first" model, gradually replacing contractors with AI tools (The Times).

HR’s Key Role:

• 🗣️ Start the conversation — Hold open forums and Q&As to demystify AI’s role. Silence creates space for rumors.

• 📚 Upskill with purpose — Provide programs focused on AI-human collaboration. LinkedIn Learning reported a 160﹪ spike in AI course enrollments—your people want to understand.

• ⛔ Set clear boundaries — Clarify what AI will and won’t do, especially around privacy, layoffs, and decision-making. Take cues from the UK’s AI Policy Framework on human-led oversight.

• 🧠 Lead with empathy — Tech won’t replace trust. Emotional intelligence remains HR’s superpower.

Ready to Lead with Confidence? Unlock your HR strategy with our HR Tech 101 Guide »

TREND WATCH

The Workplace Psychological Contract Is Broken: Can It Be Fixed?

HBR – The debates over return-to-office mandates often feel like a clash of extremes: out-of-touch executives vs. entitled, disengaged employees. But the real issue goes deeper — a shifting psychological contract between employers and employees, affecting more than just office policies.

Amazon's September 2024 mandate to return to the office five days a week sparked swift backlash, with 91﹪ of surveyed professionals dissatisfied and 73﹪ considering quitting over the change.

See how leaders can repair the employer-employee relationship »

😬 IBM Replaces Hundreds of HR Staff with AI - As AI takes over more HR roles, IBM reallocates resources. [Entrepreneur]

⚖️ OPM Cancels Controversial Workday Contract - The U.S. OPM revoked a sole-source contract with Workday. [Reuters]

🛡️ EU’s AI Workplace Regulations - The EU sets rules for AI use to emphasize transparency and worker protection. [Benefits CA]

🏆 Experian Wins 2025 HR Tech Award - Experian's innovative tax withholding solution earns recognition. [Experian PLC]

🔍 Top 3 Workplace Mismatches - Analysis reveals mismatches between employer offerings and employee expectations. [HRD]

📊 Transforming Engagement and Retention - Valuable insights into employee engagement trends and HR strategies. [Kudos]

HR WISDOM

Is Your Company Truly Ethical, or Just Checking Boxes?

A company that places big emphasis on industry compliance is one that can be said to have a strong ethical corporate culture. In other words, having a culture of ethics and compliance means that your organization upholds the safety and regulatory standards of the field you work in.

Although different laws and regulations apply to different industries, business ethics are often prevalent across the various sectors. Values such as transparency, fairness, accountability and compassion can inform the way a company operates, regardless of the industry it belongs to.

This article discusses the ever-evolving subject of business ethics and compliance, its significance, and the ways you can cultivate it within your organization.

👉 Read the full guide on creating an ethical work culture »

BREAKROOM

📬 Missed Friday’s issue? Read it here.