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CHROs face challenges leading AI-driven workforce changes

By Olivia Thomas ·
Senior executives discussing strategies in a modern boardroom setting.
Senior executives discussing strategies in a modern boardroom setting. Photo: Werner Pfennig/Pexels

CEOs at high-performing companies are reshaping the human resources function into an “enterprise” role, placing CHROs alongside senior tech leaders and the C-suite to secure long-term performance, according to a report from leadership advisory firm Heidrick & Struggles.

Expanding the leadership circle

The report, released on Oct. 7, defines an enterprise CHRO by three criteria: strong operational effectiveness across core HR duties, the ability to advance workforce planning and executive succession, and alignment with the CEO. High-performing companies are moving away from the traditional CEO-CFO-CHRO triad toward a quartet that includes the senior technology leader.

Heidrick & Struggles noted that while the CFO still manages financial resources, enterprise CHROs are building partnerships with technology leaders that rival or exceed their relationships with CFOs. These alliances focus on building workforce capability and determining how AI, automation, and digital tools reconfigure work.

Changing metrics and boardroom influence

High-performing organizations hold their enterprise CHROs accountable for more than traditional metrics like cost efficiency. They are also evaluated on establishing leadership pipelines and whether the workforce is transforming to meet the needs of an AI-enabled future.

These executives are more likely to bring different information to boardroom discussions, including strategic workforce planning and future skills needs. This data helps the C-suite evaluate enterprise risk and the likelihood of transformational success.

Confidence gaps

While organizations increasingly rely on HR to guide AI adoption and talent strategy, the research notes that CHROs and the C-suite often differ on where the role should go. This gap is evident in a recent confidence index from The Conference Board, which found only 4% of U.S. CHROs feel very prepared to manage the changes expected over the next two years.

The uncertainty stems from AI’s potential impact on jobs and the broader workforce picture. Two-thirds of CHROs have brought AI technology or tech leaders into discussions, yet many leaders still face challenges dealing with this shift.

Only a quarter of HR leaders are currently operating at an enterprise level, Heidrick & Struggles found, indicating, as other recent studies have shown, that CHROs face challenges managing AI-driven change and what it means to lead HR in 2026.

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