Solving the AI Paradox

A few years into widespread AI adoption, many leaders are still wrestling with a deceptively simple question: What matters more to AI success, the technology itself or the people using it?

Organizations that frame AI as a choice between talent and technology are setting themselves up for disappointment. The companies actually seeing results understand that success requires both. The right tools matter, but so do employees with the curiosity, adaptability and confidence to use them well. Treating these as competing priorities leads to underinvesting in both—which is exactly why so many transformations stall.

The data already reflects this friction. According to G-P's 2026 AI at Work Report, the share of executives who describe their organizations as aggressively using AI to innovate has dropped from 60% to 42% in a single year. That retreat isn't a technology problem; it’s a strategy failure. In the rush to adopt new tools, leaders forgot that by ignoring the human element, the tech simply won't take root.

Moving Past the Either/Or Debate

Much of the AI conversation has centered on extremes. Some leaders view it primarily as a cost-cutting lever. Others fixate on headcount, worrying about which jobs will be impacted. Both perspectives miss the bigger picture.

AI doesn't create value in a vacuum. It changes how work actually gets done. While it automates repetitive tasks, it also raises the stakes for uniquely human capabilities such as critical thinking, discernment, and context. When AI drafts a job description, summarizes candidate feedback or analyzes compensation data, the real value comes from the person evaluating that output. We need humans to identify what's missing, question biases and apply real-world validation. Technology accelerates the work, but human judgment determines the worth.

The goal shouldn't be "people versus technology." It should be "people with technology."

The Human Skills that Matter Most

Despite fears that AI will displace workers, many of the most important human capabilities are becoming more valuable, not less. According to the World Economic Forum’s Future of Jobs Report, analytical thinking, resilience, flexibility and the ability to lead through ambiguity are among the priorities for organizations embedding AI into everyday workflows.

As HR leaders, we know these skills are non-negotiable. AI can surface patterns in compensation data, suggest policy language and eliminate hours of administrative paperwork. What it cannot do is replicate the emotional intelligence and complex conflict resolution needed for people management. That still requires people who can exercise judgment and communicate with genuine empathy.

The organizations that benefit most from AI will be the ones that invest deliberately in those strengths rather than assuming those traits will develop on their own.

Psychological Safety is the Key Ingredient

Even with the right tools and the right skills in place, AI adoption often hinges on a less visible factor: culture. Our research found that 73% of employees hesitate to use AI at work. They worry it signals a lack of capability or will diminish their value. When these anxieties go unaddressed, resistance quietly undermines adoption before it ever takes root.

This is where HR must step up to lead. Creating a space where employees can share how they're using AI, ask questions and experiment without fear of judgment is one of the most impactful contributions HR can make right now. At G-P, we focused on normalizing this curiosity through transparent channels and recognizing wins. We have an AI Council, an organization-wide transformation initiative and award employees using AI in interesting ways. When leaders treat AI as a practical tool rather than a performance test, employees engage thoughtfully. Without that psychological safety, even the most well-resourced AI rollout will fail.

The Need for Cross-Functional Governance

Too often, purchasing decisions are made in silos with limited input from the people managing daily workflows. This is a major operational risk that leads to investing in platforms that employees don’t trust or fail to produce successful outcomes.

Our research points to exactly this problem: only 23% of global executives report having complete confidence in the accuracy of their organization's AI outputs, and 88% are concerned that employees are performing productivity rather than driving it. Those aren't technology failures; they’re governance and alignment failures.

HR must have a central voice in these decisions alongside IT, legal, finance and business leaders. We are at the helm to prevent our organizations from chasing shiny objects or adopting artificial intelligence just for the sake of it. Bringing employee feedback into the evaluation process surfaces practical concerns about usability early on. When people have a hand in shaping their toolsets, they are far more likely to adopt them.

A Grounded Approach to AI

There’s no perfect AI strategy. The organizations building this muscle now by learning what works, correcting what doesn't and bringing their people along are securing themselves a long-term competitive advantage.

The roadmap isn’t complicated: Invest in tools that solve real business problems, develop the human capabilities that complement technology and build a culture where responsible experimentation is encouraged.  The organizations that get this right won't be the ones with the largest budgets or the most sophisticated platforms. They'll be the ones that recognize that AI works best when the right people are empowered by the right tools.

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Laura Maffucci is G-P’s Head of HR, overseeing the global workforce, talent, and employee experience with a people-first mindset. She values diversity of thought as essential for a healthy workspace. In her 20+ year career in HR, Maffucci has spoken on global and national platforms about compensation, employee well-being and mental health. She’s a staunch advocate for the employee experience and creating a culture of inclusivity. Maffucci is passionate about the future of work, normalizing the value of work everywhere, and enabling employees globally to be their best selves and add value wherever they go and whatever they do.