HR Holds the Keys to Gen AI Value. Most Are Not Using Them.
KPMG is right that HR must lead Gen AI adoption. What the report leaves out is why most HR functions are not positioned to do it.
Three Takeaways
- 1
Gen AI does not need a technology owner. It needs an operating model owner.
- 2
HR is the only function with standing to redesign how work gets done across the enterprise.
- 3
Organizations that hand Gen AI to IT will get automation. Organizations that hand it to HR will get transformation.
KPMG published a paper arguing that HR holds the keys to creating value from generative AI. The argument is correct. The execution is harder than the paper suggests.
The Core Claim
KPMG identifies three areas where HR can lead Gen AI value creation: remodeling the HR operating model itself, reconstructing the enterprise workforce, and guiding responsible use.
Each of these is an operating model intervention, not a technology intervention. This is the right framing. Most organizations are still treating Gen AI as a technology decision. It is not. It is a workforce and operating model decision.
Where the Analysis Stops Short
The paper describes what HR should do. It does not describe what HR needs to be in order to do it.
Most HR functions are not positioned to lead enterprise-wide operating model transformation. They are positioned to manage headcount, run performance cycles, and administer benefits. These are not the same thing.
Restructuring the HR Operating Model First
Before HR can restructure the enterprise workforce for Gen AI, HR has to restructure itself. This means moving from administrative function to operating system architect. It means owning the question of how work gets done, not just who does it.
This is a significant capability gap in most organizations. HR has the mandate. It rarely has the operating infrastructure to execute.
The Practical Implication
Organizations that want Gen AI value should ask: Is our HR function positioned to redesign how work gets done across the enterprise? If the answer is no, that is the first problem to solve.
The technology is ready. The operating model is not.
Source: KPMG, "HR holds the keys to creating value from generative AI," 2024
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About GeneralArc
GeneralArc is operating model architecture for the AI transition. Its methodology was built across more than two decades inside the operating models of JPMorgan Chase, McKinsey & Company, Nomura, and Deutsche Bank — leading change across 100,000+ employees.
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