AI is moving quickly from a technology businesses were largely experimenting with to one that is actively changing the way work is done, decisions are made and teams operate.
Much of the conversation has focused on what AI can do, but as it becomes more embedded in everyday business, the people side of that change deserves just as much attention. The way AI is introduced, how employees prepared for it and the decisions made around its use will all shape how successfully it is adopted.
Hi, I’m Esther, Co-Founder and Director of Seed HR, and after more than twenty years working in Human Resources, I’ve seen businesses navigate major changes in the way they structure teams, build capability and respond as the nature of work evolves.
AI is another significant change, and the decisions being made now will have a lasting impact on both the business and the people within it.
So, before AI is rolled out and becomes part of the way your business works, it’s worth looking closely at the people who will ultimately determine how effectively that change is understood, adopted and put into practice.
The Biggest Challenge With AI Is Not Technology. It’s What Happens to the People Using It
For all the investment going into AI, one of the biggest barriers to successful adoption is still sitting inside the business itself, and it comes down to whether the people expected to use it are actually ready to.
PwC found that 45% of Australian CEOs identify internal skills and capability as their largest barrier to AI adoption, showing that access to the technology is only part of the equation. [1]
Employees need to understand what the technology is there to do, how it fits into their role and what is expected of them when they use it. For example, if a team is encouraged to use AI to draft client emails or prepare reports, they need to know what information can safely be entered and where human judgement is still required.
Without that clarity, some employees may avoid the technology altogether while others use it in ways the business never intended. Managers also need enough knowledge to answer questions, reinforce appropriate use and give their teams confidence to experiment without feeling that every new AI tool is another signal that their role is under threat.
Recent McKinsey research found that employees are more willing to adapt to AI-related change when they trust that their leaders will support them through it, communicate honestly and be clear about what is changing. [2]
Successful AI adoption requires capability building, clear communication, aligned leadership and employees who understand how to use the tools confidently and responsibly.
A Genuine AI Transformation Within a Business Starts With Redesigning How Work Gets Done
A genuine AI transformation starts with looking closely at how work is currently done and asking how it should be done now that AI exists.
Rather than introducing AI into existing processes and hoping productivity improves, businesses need to examine the individual tasks that make up each role and consider where technology can remove unnecessary administration, speed up routine work or create capacity for people to focus on higher-value responsibilities.
When you start to look at work from this perspective it also helps businesses understand the broader impact on each role as certain responsibilities become faster, simpler or automated. New responsibilities can emerge, different skills can become more valuable and, over time, the role can evolve as a result.
PwC’s 2026 research found that in the most AI-exposed occupations, new tasks are 2.5 times more likely to require human-intensive skills such as judgement, empathy and creativity, alongside technical expertise. [3]
As routine work becomes easier to automate, the value of those distinctly human skills can actually increase.
These changes have a direct impact on the areas HR is responsible for, including
- Job descriptions
- Capability requirements
- Recruitment
- Learning and development
- Performance expectations
- Workforce planning
Understanding how the work is changing therefore needs to come before decisions are made about restructuring teams or removing roles. Once there is a clear understanding of how the work is changing, businesses are in a much better position to determine what skills will be needed and how roles should evolve.
What Leading Australian Organisations Are Already Doing Differently With AI
Some of Australia’s largest organisations are already showing what it looks like when AI is treated as a workforce priority rather than something owned solely by technology teams.
At Atlassian, Avani Prabhakar now holds the combined role of Chief People and AI Enablement Officer, with responsibility spanning people, cultural transformation and internal AI adoption. [4]
AI enablement is also shared across senior technology and people leaders, reflecting the understanding that changes to technology, skills and ways of working need to happen together. [5]
Atlassian has since reported that more than 99% of its employees use AI in their daily work without an organisation-wide mandate. [6]
Commonwealth Bank is taking a similarly deliberate approach through its $90 million Future Workforce Program. More than 30,000 employees have received AI-related training, while the bank is also mapping existing skills, identifying capability gaps and helping employees prepare for emerging roles and career pathways. [7]
A similar focus on capability can be seen at PwC, which has developed an AI up-skilling pathway built around 15 technical and 15 human capabilities, including judgement, creativity and ethical reasoning. [8]
Small and medium businesses may not have the same budgets, resources, internal teams or transformation programs, but the most useful lesson is to avoid treating AI as a standalone technology project and think about the people who will use it, the work that may change, the skills their team will need and how those changes will be managed across the business. Even on a much smaller scale, involving HR early will make the AI adoption more aligned with the way the business operates.
The HR Leader of the Future Will Need to Understand More Than People
HR leaders who build a practical understanding of AI and digital systems will be well positioned to expand their influence, take on more strategic responsibilities and play a greater role in workforce and business decisions.
That includes knowing the capabilities and limitations of AI, how automation may affect roles, how workforce data is being used and where issues such as privacy, governance, bias and human oversight need closer attention. Without that understanding, it becomes much harder for HR to contribute meaningfully to decisions that will directly affect people.
At the same time, stronger technological capability does not reduce the importance of the human side of HR. PwC research continues to show strong demand for capabilities such as judgement, creativity and empathy in AI-exposed occupations, while the World Economic Forum also identifies leadership, resilience, collaboration and analytical thinking among the skills growing in importance. [9]
The strongest HR leaders will increasingly be those who can connect these two worlds. They’ll understand people and culture, but also how technology, operations and commercial priorities influence the workforce.
That broader perspective gives HR a far more strategic role in deciding where AI should be used, what capabilities a business will need and how its people can continue to contribute meaningful value as work evolves.
AI transformation is already changing the way work is designed, how teams develop and the role HR plays in business decisions. For small and medium businesses, the opportunity is to approach that change with the same level of thought given to any other major workforce decision.
If you’re considering how AI could affect your team, roles or future workforce needs, Seed HR can help you work through the people side of that change and build a practical plan that fits your business.
Get in touch with Seed HR to start the conversation.
References
- [1] PwC Australia, Bridging the AI Skills Gap: Why Your Workforce Capability Strategy Needs Attention, 27 March 2026. View source
- [2] McKinsey & Company, From Adoption to Impact: Three Horizons of AI Transformation, 8 July 2026. View source
- [3] PwC Australia, 2026 AI Jobs Barometer, 2026, together with PwC Australia, People Investment at the Heart of Successful AI Transitions, 2026. AI Jobs Barometer People Investment source
- [4] Atlassian, Leadership: Avani Prabhakar, Chief People and AI Enablement Officer, 2026. View source
- [5] Australian HR Institute, How Atlassian Is Reimagining the HR Role for the AI Era, 3 May 2026. View source
- [6] Atlassian, Leading with Context: Lessons from Atlassian’s AI Journey, 2026. View source
- [7] Commonwealth Bank of Australia, Future Workforce: CBA Launches New Skills and Careers Program, 2026. View source
- [8] PwC Australia, People Investment at the Heart of Successful AI Transitions, 2026. View source
- [9] World Economic Forum, The Future of Jobs Report 2025, 2025. View report