Leading HR Through the AI Transformation

AI is actively reshaping how organizations hire, develop, and support employees. But the biggest challenge now isn’t access to technology. It’s ensuring people stay engaged, trusted, and connected to their work as change accelerates.During a panel discussion at From Day One’s Seattle conference, industry professionals highlighted a shared reality: AI transformation is fundamentally a people challenge. The discussion was moderated by Seattle Times business reporter Megan Ulu-Lani Boyanton.From rebuilding trust and redefining meaningful work to reinforcing human value and responsible governance, the conversation made one thing clear: future-proofing HR means strengthening the human side of work, not replacing it.Addressing the Trust GapEmployees have been through a lot in recent years. Cathy Peterman, chief people officer of tech at Wayfair, doesn’t shy away from the reality many employees are experiencing, which is uncertainty layered on top of years of disruption. “We’ve dropped this AI transformation on six years of cultural and trust debt,” she said. Between the pandemic, economic instability, and waves of layoffs, employees are carrying a backlog of concern about whether they have a future in their current role. Panelist shared insights on "Future-Proofing HR With AI: How to Lead, Adapt, and Keep the Human Touch in a Tech-Driven Era"Context matters. Leaders can’t introduce AI purely as an efficiency tool without acknowledging the emotional landscape employees are navigating. Peterman emphasized transparency and shared ownership. “We’re all kind of figuring this out as we go,” she said. Peterman encouraged a collaborative approach. “Let’s be in it together. Let’s figure it out together.”This shift is about rebuilding credibility. Ignoring the past risks widening what she called the trust gap, while addressing it directly creates a path forward. As she noted, “We’ve had a tough six years together.”In a moment where AI brings both excitement and anxiety, trust becomes the differentiator. Organizations that acknowledge uncertainty and invite employees into the process will be better positioned to move forward together.AI Requires Human AwarenessFor Liz Friedman, senior director of HR AI transformation at Microsoft, the promise of AI in HR comes with a clear responsibility: staying grounded in human experience. Technology is advancing rapidly, but organizations can’t forget about their people. “We need to meet people where they are right now,” she said. This is especially true as employees feel stressed and overwhelmed by the pace of change.That emotional reality cannot be separated from AI adoption. Friedman described the current moment as “a very emotional place to be,” where questions about job security, purpose, and long-term impact are unavoidable. She also warned against over-reliance on automation itself. “One of the biggest dangers right now is that people are letting it do the thinking for them,” she said. This can lead to what she called “AI slop.” Instead, Friedman encouraged using AI as “a great thought partner” that expands thinking rather than replaces judgment.Ultimately, responsible AI is about intention, Friedman says. Organizations that slow down enough to ask better questions, acknowledge employee concerns, and protect critical thinking will be the ones that use AI not just efficiently, but wisely.Helping Employees Feel They MatterAmanda Myton, head of learning and development at Snowflake, underscored that one of the most pressing challenges in the AI era is deeply human. “The thing that was falling fastest amongst employees was a sense of mattering,” she said. In fact, employees are increasingly asking, “Does the work I do matter? If AI can do all of these things, how do I matter?”For leaders, that question cannot be left unanswered. Myton emphasized that managers play a critical role in helping employees reconnect to purpose by guiding reflection on value and contribution. She said, “What am I doing that is uniquely human? What value am I bringing?” framing it as a necessary lens for navigating AI-driven work.Myton also cautioned that adoption metrics alone can be misleading. “Teams can have high AI adoption, but low human connection, and on a dashboard they can look the same.” The real differentiator is what leaders do next. “It is where that manager reinvests those gains back into their teams that makes the difference,” she said.Ultimately, Myton framed this as a core responsibility for HR and learning leaders. “How are we making sure that folks still understand what their unique value is?” In a rapidly evolving workplace, reinforcing meaning is essential for maintaining engagement and motivation.Responsible AI Requires Strong GovernanceShannon Flynn, VP of corporate HR at Fortive, emphasized that the speed of AI adoption has forced organizations to rethink governance much earlier than expected. “We set up our AI machine learning team, but we quickly had to put in some governance in place,” she said, adding that experimentation alone is not enough once tools scale across an enterprise.Flynn also noted that governance cannot remain static. “The governance that we put in place seven years ago does not stand, and we have to continue to reinvent it,” she said, highlighting the need for continuous adaptation as AI evolves.A turning point in her thinking came from a personal experience with AI-generated misinformation. After using AI for research, Flynn discovered the system had fabricated a source. “It hallucinates, so you have to know that it will make stuff up because it wants to make you happy.”Because of this, she says, strong guardrails are essential. Organizations must clearly define: “Here is what you can use it for, and here is what you cannot use it for.” Ultimately, humans should begin a project and end a project, and AI can help in the middle.Carrie Snider is a Phoenix-based journalist and marketing copywriter.(Photos by Josh Larson for From Day One)