In the wake of the week…

Multiple reports highlight the central role of Human Resources in scaling AI across the enterprise. Microsoft unveiled its latest AI strategy, introducing the “Frontier Firm” as a new model for agent-led operations. Meanwhile, Gen Z workers confronted a shrinking ladder into the workforce, with AI adoption accelerating faster than training and support.

And in this week’s Extra Credit: sensitive data keeps flowing into AI tools despite mounting risks; Walmart throws open the gates on generative AI adoption; enterprise leaders rethink moats as competitive advantage shifts from defensibility to meaning; and new guidance warns against overreliance on AI in leadership selection.

Let’s dive in. 👇

HR’s Moment Has Arrived

Is this HR’s moment? We think so. This week, a new wave of research highlights the growing influence of HR in guiding how AI is deployed, governed, and scaled across the organization.

Bain finds that the companies most successful in scaling GenAI start by engaging HR. These leaders tap HR to train the workforce, rewrite roles, and foster an AI-literate culture. SHRM reports that AI use among HR professionals has doubled in the last eight months, with many now driving policy, usage standards, and ethics. TechRadar frames the shift clearly: responsible AI adoption depends on trust, and trust begins with people.

A new layer is emerging as well. HR teams are starting to manage not just people but a continuum of human and AI contributions. Workday and other HR systems are now modeling AI agents as legitimate participants in the workforce. This shift is blurring the line between automation and employment. The implications for role design and talent strategy are growing, and HR is leading the response.

New research from Accenture reinforces this evolution. While most GenAI budgets remain focused on technology, the companies seeing the most value are the ones investing in workforce transformation. HR’s ability to reshape roles, guide cultural integration, and build internal fluency will prove just as critical as the tools themselves.

By the Numbers

• 66% of HR professionals now use AI tools regularly, up from 30% eight months ago

• 59% of companies that scaled AI successfully trained their workforce through HR

• 77% report time savings of 10% or more from early AI adoption

• 40% of companies have scaled AI across the organization

• 13% say HR is fully involved or leading GenAI integration

Why It Matters

AI is moving beyond tools and workflows. It is becoming part of the workforce itself. Decisions about how and where AI contributes, through digital assistants, agent systems, or embedded automation, are now part of workforce planning. HR leaders must manage this shift in talent strategy, role definition, and organizational structure.

Business Impact

These changes are shaping how work is distributed and how value is created. As the nature of work shifts from job-based structures to skills-driven models, HR is also taking the lead in building frameworks for upskilling, task allocation, and workforce adaptability. This planning is essential to capturing AI’s value at scale.

Leadership Insight

AI introduces a company-wide shift in how work gets done. Forward-looking HR leaders are partnering with IT, legal, and business lines to define what roles require human talent, what can be AI-assisted, and what can be fully automated. Accenture calls this the most exciting time to be in HR, but also one that requires new fluency.

The Bottom Line: As AI integrates into routine workflows, leadership will rely on HR to guide responsible use, workforce enablement, and cultural alignment. The path to scaling AI runs through people, and HR sits at that critical intersection. This responsibility demands strategic leadership. If that capability isn’t in place, it’s time to invest in it—or make a change.

Sources: Techradar, Bain & Company, SHRM, HR Brew, WorkLife

Early-Career Talent Faces Existential Test in the Age of AI

Since this newsletter began, the impact of AI on jobs has been a recurring theme. Much of that attention has focused on mid-career workers—those in roles most exposed to automation, optimization, or restructuring. Today, we turn the lens toward Gen Z.

Entry-level roles are disappearing as companies shift resources toward automation and efficiency. In tech, junior positions have declined while job postings requiring seven or more years of experience have increased. Big firms are choosing not to backfill roles and, in some cases, are opting for AI over training new hires.

Gen Z workers are trying to adapt, but many are doing so without formal support. Deloitte's latest survey shows that only half have received AI-related training at work. Those using GenAI regularly are more likely to believe it will eliminate jobs and reduce opportunities for younger workers.

Independent voices are calling this out. In a widely circulated essay, entrepreneur and CEO of Scott Galloway’s e-learning platform Section Greg Shove on his blog Personal Math writes that every job tied to outputs is vulnerable. AI tools are improving quickly, and most knowledge work will be touched. The safe roles will be those centered on outcomes and business impact.

By the Numbers

• 6% of college grads under 27 are unemployed, more than twice the rate for all degree holders

• 59% of Gen Zs believe AI will make workforce entry harder

• 51% say their employer is not preparing them for AI’s impact

• 73% of Gen Zs who use GenAI frequently expect it will eliminate jobs

• 44% have already rejected a project or job that conflicted with their values

Why It Matters

This is a pivotal moment. Entry-level roles are where skills are built and potential is shaped. Without them, the workforce pipeline narrows and long-term capability suffers.

Leadership Insight

Productivity gains are important, but they do not replace the need to develop talent. Early-career employees bring long-term value when paired with training, mentorship, and growth opportunities. Leaders who align AI efforts with workforce development will build stronger teams and a more resilient organization.

The Bottom Line: Entry-level roles carry more weight than they appear. They shape talent pipelines, conduct institutional knowledge, and anchor long-term growth. As AI takes on more routine work, the responsibility shifts to leadership to ensure that younger workers still gain access, development, and meaningful contribution. A strong future workforce depends on the decisions being made now.

Sources: Deloitte [report], Business Insider, Personal Math

And the Buzzword of the week is…”Frontier Company”

Every few weeks, the AI world crowns a new game-changer. This week, Microsoft delivered one with the 2025 Work Trend Index, which introduces the Frontier Firm—a company designed around human-agent collaboration. These organizations are developing new systems for getting work done, focused on scale, speed, and adaptability.

Microsoft describes three phases: AI begins as an assistant, evolves into a digital colleague, and eventually runs entire workflows under human oversight. Researcher and Analyst, new AI agents launching with Microsoft Copilot, illustrate this direction. These agents gather context from meetings, documents, and systems to deliver actionable insights, not just output.

To support this shift, Microsoft launched an Agent Store and new tools that help companies deploy, govern, and manage their growing digital workforce. The goal is to help employees become “agent bosses”, professionals who direct teams of AI systems to increase their own impact.

By the Numbers

• 82% of business leaders expect AI agents to be part of operations within the next 12 to 18 months

• 71% of employees at Frontier Firms say their company is thriving, compared to 37% globally

• 45% of leaders list digital labor expansion as a strategic priority

• 78% of organizations are planning to hire for AI-specific roles

• 33% are adjusting staffing plans in response to AI implementation

Why It Matters

Off-the-shelf AI tools often underdeliver because they are not built for how teams actually work. Research from Harvard Business Review shows that organizations see stronger returns when they train AI models on real workflows and decision paths. The Frontier Firm signals a move toward this approach. The focus is shifting from general capability to operational context.

Business Impact

Frontier Firms are building operational leverage. Employees at these companies report higher productivity, faster execution, and access to more meaningful work. AI agents are already supporting customer service, product development, and internal operations. As organizations refine their human-agent models, they are reducing complexity and increasing output. The structure is proving durable and scalable across functions.

Leadership Insight

Most companies will not roll out agents at scale this year. The opportunity now is to prepare. Leaders are building fluency, running focused pilots, and identifying where agents can extend the work their teams already do well. The best results come when AI is introduced with structure—clear roles, relevant data, and a strong understanding of how decisions are made. Maintaining headcount while adding AI capacity gives companies room to adapt. The focus is not on speed. It is on setting up teams to succeed.

The Bottom Line: Whether “Frontier Firm” becomes part of the vernacular or fades into obscurity remains to be seen. I’m not long on this one. But the shift behind it is real. The tech industry offers a window to the future of work. AI agents are beginning to influence how work gets done, who does it, and how companies think about scale. This is not a future scenario. It is a slow build that has already started. Keep an eye on how your peers are experimenting. The shape of tomorrow’s workplace will be decided by the choices made now.

Sources: Microsoft [report], CIO Dive, ZDNET, The New Stack, Harvard Business Review

Extra Credit

For the overachievers: These are the stories that didn’t crack the top three but are too important to ignore—quick hits on what’s happening and why it matters.

Threading the Needle: AI’s Role in Leadership Selection

Key Takeaway: A group of leading industrial-organizational psychologists urge caution when applying AI to leadership selection. The tools offer powerful support but cannot replace the human judgment, contextual understanding, and scientific rigor required in executive assessment.

Why It Matters: Too many vendors are selling sleek AI-driven tools with vague claims about leadership potential. The risks range from legal exposure to poor hiring outcomes. AI can streamline analysis, synthesize feedback, and suggest development actions. But without oversight, the cost of bad decisions compounds quickly. The authors recommend a multi-method, multi-measure approach that puts science first and positions AI as an assistant, not an evaluator.

Source: Workforce Solutions Review

How to Innovate When Nothing Is Defensible Anymore

Key Takeaway: In an AI-saturated world, traditional competitive moats—technology, scale, brand—are easier to replicate than ever. Companies that once relied on defensibility must now compete on meaning. That shift has profound implications for strategy, open innovation, and brand.

Why It Matters: AI can clone your product, mimic your tone, and match your funnel. Strategic advantage now comes from how people interpret what you do and why it matters. Companies that integrate narrative into innovation—co-creating with startups, curating value-aligned portfolios, and using pilots to signal intent—are building cultural moats in place of structural ones.

Source: Open Road Ventures

Sensitive Data Continues to Flow Freely Into AI. Don’t Say We Didn’t Warn You — at least 7 times.

Key Takeaway: New data from Cyberhaven confirms what we’ve been warning about: sensitive corporate information is pouring into AI tools at scale. Nearly 35% of data entered into AI systems is now classified as sensitive, up from just 10% two years ago. That includes source code, R&D, HR records, and internal communications.

Why It Matters: AI use has exploded inside companies, but security practices have not kept pace. Most tools in use are classified as high or critical risk. Nearly 40% are exposing user data or interactions. If your company does not have a basic AI governance policy in place, it is not a question of if something will leak—it is a question of what and how much.

Source: Human Resources Director

Walmart Opens the Floodgates to Generative AI

Key Takeaway: After two years of experimentation, Walmart is operationalizing generative AI across its global workflows. The company has embedded AI into software development, built internal tools for compliance and oversight, and introduced agents that automate accessibility reviews. Executives say the goal is full adoption with safeguards in place.

Why It Matters: Walmart is integrating AI into core systems while building out a robust infrastructure for governance. Tools like its internal ML platform, Element, ensure only compliant models reach production. Human oversight remains central, and AI champions are helping employees use the tools responsibly. This is enterprise-scale AI enablement, done with intentionality and speed.

Source: CIO Dive

Forecasting the Future of Work: Chicken Little or the New Normal?

Key Takeaway: A growing chorus of voices is signaling a profound transformation in how societies approach jobs, income, and identity. As AI systems scale rapidly and surpass human capabilities in specialized domains, the structure of employment and compensation is beginning to shift.

Why It Matters: Research from Elon University and Pew highlights a divergence in outlook. AI experts see new opportunities, while the public anticipates disruption. Concerns include declining trust in institutions, the erosion of identity tied to work, and the need for new economic models. Proposals such as universal basic income are moving from academic theory into active planning. This moment calls for preparation across education, labor, and policy, not reaction after the fact.

Source: Inside Higher Ed

This edition of The Big Shift: AI @ Work may have been edited with the assistance of ChatGPT, Claude, Copilot, Gemini, Perplexity, or none of the above.

Want to chat about AI, work, and where it’s all headed? Let’s connect. Find me on LinkedIn and drop me a message.