According to The Conference Board’s quarterly CHRO Confidence Index, a mere 4% of U.S. chief human resources officers believe they are well-prepared to handle workplace transformations driven by artificial intelligence in the next two years. The organization attributes this low figure to various strategic challenges.

While most surveyed CHROs acknowledged adjusting their workforce planning due to AI, only 19% confirmed integrating AI’s expected impacts into full organizational and financial strategies.

A major obstacle, as noted by respondents, is the difficulty in forecasting AI’s effects on the workforce, compounded by a shortage of AI expertise. Employers are growing increasingly worried about AI potentially exacerbating skill gaps among employees.

Recent research indicates that certain employee skills may decline as AI becomes more prevalent, contributing to broader uncertainty among CHROs about the future of work. Notably, 67% of respondents reported assessing AI’s potential job impact.

An equal percentage of CHROs involved AI technology or leadership in workforce planning discussions, yet less than half incorporated new AI-related data on workforce, skills, or labor markets. A critical concern is AI’s potential to undermine skill development.

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A University of Phoenix survey revealed that HR teams often lack a complete understanding of their employees’ skills, a phenomenon termed the “skills visibility gap.” Separately, an IBM study warned that AI could diminish essential skills such as critical thinking and judgment.

PwC highlights that employees without specialized skills or proficiency in AI risk falling behind their colleagues. Additionally, misuse of AI due to inadequate understanding may hinder genuine productivity gains.

In a September report, Gartner emphasized that HR departments must now focus on rethinking talent strategies and job structures. Despite AI’s uncertain long-term effects, the firm urges HR professionals to proactively address and adapt to AI-induced changes in roles and responsibilities.

Gallagher stresses the importance of internal talent development, noting that high employee turnover can hinder productivity and increase costs. The firm also cautions that disengagement and distrust may further delay AI integration efforts.

Despite these challenges, CHROs remain optimistic about hiring, with The Conference Board’s Q3 index nearly matching its record-high level from Q1 2026. Diana Scott, U.S. human capital center leader at The Conference Board, stated in a press release that the overall workforce outlook is becoming more cautious as growth decelerates.