Seven in every 10 (71%) chief human resource officers (CHROs) identify the ability to supervise, validate and override AI outputs as the workforce’s most essential skill, but only 29% of employees rank judgment as important.
This is according to a report from IBM Institute of Business Value, which points to a disconnect between the skills CHROs say AI requires and those employees prioritize.
The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted two complementary surveys from April to June 2026.
The first survey gathered insights from 1,500 CHROs and equivalent senior executives responsible for workforce strategy on how they design work, culture and the workforce for an AI-enabled enterprise across 21 geographies, including those in the Asia-Pacific region.
Executive respondents represented organizations of varying sizes and sectors with 200 to more than 880,000 employees. The second survey polled 8,800 full-time employees spanning 28 countries to capture their experience with AI at work.
The study finds that 60% of employees worry about skills erosion, with critical thinking cited most often as declining.
At the same time, CHROs identify critical thinking (57%) and human judgment (48%) as among the workforce’s most important capabilities.
The findings also show that organizations creating the greatest value from AI are redesigning work, decision-making and workforce capabilities around people and technology.
Organizations that clearly define workflows as human-led, AI-assisted or AI-executed report achieving 18% risk reduction and 20% quality improvement.
Yet, nearly half (46%) of organizations do not involve the CHRO when AI strategy is being defined.
“AI is changing not only how work gets done, but where people can contribute the greatest value,” said Nickle LaMoreaux, SVP and chief human resources officer at IBM.
“As AI takes on more routine and process-driven tasks, uniquely human capabilities become even more important. CHROs have a critical role to play in redesigning the workplace of the future so people can focus on the areas where they can have the greatest impact,” said La Moreaux.
Findings also show that, among employees who worry about skills erosion, three out of four say AI has already begun to erode at least some of their skills.
Skills erosion ranks among CHROs’ top concerns, cited by 46% of respondents. Also, 49% of employees and 57% of CHROs say critical thinking and problem framing are among the skills that matter most in the AI era.
Where judgment is built into how work is done, 62% of CHROs report growing employee confidence in AI-enabled decisions; where it is not, 57% report confidence declining.
Further, AI accountability gaps are impacting employees as 43% of employees report that when something goes wrong with AI, the blame falls on them, while 41% of CHROs believe employees may not feel safe challenging or overriding AI outputs.
Among CHROs, 36% say unclear accountability complicates AI deployment. Only 28% of CHROs report a joint roadmap with IT backed by a shared operating cadence, and 73% say they struggle to coordinate consistently across the C-suite.
Where the CHRO at least shares responsibility for which decisions remain human-led, 76% of employees feel safe to question or override AI recommendations, compared with 43% where HR is merely advisory.
In addition, AI gains are creating new pressure on the workforce as 80% of CHROs believe AI adoption creates “invisible” work for employees, including validating recommendations, fixing mistakes, providing context and managing exceptions.
Among employees, 42% say AI increases their work or their work goes unrecognized while 42% of CHROs say AI productivity gains are primarily reinvested for innovation or reskilling.
Moreover, HR is expected to lead AI transformation, but its own adoption lags as 72% of organizations make limited or no use of AI inside the HR function.
CHROs rate HR’s capabilities particularly low in AI literacy across the team (13%), AI performance measurement (16%) and change management for AI adoption (20%).
Organizations with mature HR AI capability, including governance, architecture and measurement, are nearly twice as likely to report a higher number of positive business KPIs.
