The Future of Work: 11 HR Trends Every CHRO Must Know in 2026

Human Resources is entering one of its most transformative periods yet. As we move through 2026, HR professionals face unprecedented challenges and opportunities. AI is reshaping decision-making; skills gaps are widening, and the pressure for speed and adaptability has never been greater. The most effective HR leadership will come from those who act as architects of change, building trust and innovation into the very fabric of their organizations.

Based on Gartner insights from 426 CHROs across 23 industries and 4 global regions, the critical HR trends and priorities shaping success in 2026 have been identified.

The Four Strategic Imperatives Every CHRO Must Address

Before diving into specific trends, let's examine the four top priorities driving HR innovation this year:

These priorities reflect fundamental shifts in how work is being organized and delivered.

11 HR Trends Every CHRO Must Prioritize in 2026

Now let's explore the specific HR trends shaping 2026.

• 1. AI Leadership Coalition

The era of HR "supporting" technology initiatives is over. AI has moved from the IT department straight into the boardroom, and CHROs must be active participants in this transformation.

The Current State:

• 48% of FTSE 100 companies now have a Chief AI Officer
• Organizations designate an average of two senior leaders to manage AI
• 92% of HR leaders report some level of participation in AI implementation

The Challenge:

However, only 21% are closely involved in AI strategy decisions. This gap shows that many HR functions still lack the influence, mandate, or capabilities to claim a genuine seat at the strategic table.

Why It Matters:

The impact of AI transformation is deeply human. Organizations that bring HR into AI strategy from the outset are more likely to balance speed with sustainability, translating tech-driven change into measurable outcomes without compromising culture.

Action Steps for HR Professionals:

• Contribute to strategic planning: Bring workforce data, skill forecasts, and ethical considerations into AI decision-making forums
• Build C-suite alliances: Partner with the CAIO, CFO, and CTO to align AI deployment with workforce readiness
• Translate tech into people impact: Use clear language to show how AI affects roles, skills, and culture

• 2. Human-Centered Governance Guides AI Deployment

As 78% of organizations deploy AI in at least one function, new risks are emerging not just from the technology itself, but from how people use it.

Employee Concerns Are Real:

According to research, more than half of U.S. workers cite cybersecurity, inaccuracy, or personal privacy as top concerns about generative AI. A third of employees worry about explainability, equity, and fairness.

HR's Distinct Role:

While IT and Legal provide technical and regulatory safeguards, HR professionals must translate those safeguards into everyday practices that employees understand and trust. This includes:

• Reviewing recruitment algorithms for bias
• Stress-testing performance tools for fairness
• Identifying where AI might unintentionally drive burnout
• Ensuring explainability in AI-driven decisions

What CHROs Should Prioritize:

• Audit key workflows where AI is used in hiring, learning, and performance
• Partner with IT and Legal to design standards for bias-prevention and human oversight
• Provide plain-language training so employees understand how AI is used and what safeguards exist

• 3. AI Centers of Excellence Accelerate Adoption

Even though 98% of organizations are accelerating AI integration, very few feel ready to scale it effectively. This is where AI Centers of Excellence (CoEs) are making a difference.

The Data Speaks:

Companies ahead in AI adoption are 2.5 times more likely to involve HR in helping employees identify tasks suited for automation, which accelerates adoption and reduces resistance.

What Makes CoEs Effective:

These cross-functional teams bring together technology, talent, and trust. They coordinate efforts across departments, define success metrics, manage risks, and create sustainable governance structures.

HR's Critical Contribution:

Leading organizations increasingly bring HR professionals into these CoEs to:

• Shape job design and role transitions
• Lead reskilling initiatives
• Ensure ethical implementation
• Maintain cultural alignment throughout transformation

• 4. Tackling Technostress and FOBO (Fear of Becoming Obsolete)

While AI creates opportunities, it also fuels anxiety. 52% of workers are worried about AI's future impact in the workplace, and one in three believes it will reduce job opportunities for them.

The Reality Check:

The World Economic Forum reports that 41% of employers plan to reduce headcounts in the next five years due to AI. Yet 75% of employees don't feel confident using AI in their day-to-day work.

The Impact on People Strategy:

This combination of fear and lack of confidence creates:

• Rising uncertainty and falling engagement
• Hidden resistance to transformation
• Employees questioning their relevance and career prospects

How HR Leadership Can Help:

• Build confidence through hands-on learning in safe environments
• Monitor technostress and FOBO indicators in pulse surveys
• Make reskilling paths visible and achievable with clear communication

• 5. AI Capacity Gains Fuel Collective Growth

AI is transforming work by changing what people spend their time on. Research shows AI can free up more than 120 hours per employee per year.

The Strategic Choice:

Leading companies are reinvesting these savings. More than 80% of their AI investments have gone toward redesigning core functions and launching new offerings, not just cutting costs.

A Cautionary Tale:

Not all approaches work. Fintech company Klarna laid off around 700 customer service employees expecting AI agents to fully replace them. However, leadership later acknowledged that relying on AI alone "was not the right fit," and the company ended up rehiring human staff.

The Better Path:

With 39% of current skills expected to be disrupted in five years, CHROs must:

• Track and redirect time savings toward strategic initiatives
• Design new career pathways for employees in disrupted roles
• Help managers turn capacity gains into innovation opportunities

• 6. Cross-Functional Structures Replace HR Silos

Traditional HR structures are becoming outdated. 89% of HR functions have already been restructured or plan to do so in the next two years.

Why the Shift Matters:

AI platforms like Workday, SAP Joule, and Microsoft Copilot are connecting data and workflows across the entire employee lifecycle, naturally blurring functional boundaries.

The New Model:

Leading organizations are forming agile, cross-functional teams where HR professionals from different specialties work on shared business challenges like:

• Onboarding redesign
• Retention improvement
• Leadership pipeline development

The Current Gap:

While 42% of marketing teams already use AI, only 13% of HR teams do. This needs to change for HR to remain relevant.

Actions for HR Professionals:

• Join or form agile squads focused on outcomes, not functions
• Build data literacy to interpret cross-functional insights
• Position yourself as a strategic partner, not a siloed expert

• 7. HR's AI Spending Accelerates with Purpose

HR tech budgets are rising fast. 55% of companies are increasing their HR technology spend, and by 2030, the AI HR technology market size is expected to triple.

The Adoption Reality:

While 49% of HR teams use AI in recruitment, fewer than 15% apply it to other areas like performance management, development, or onboarding.

The ROI Gap:

Returns vary widely—top performers report an ROI of 55% or more, while others lag with returns as low as 5%.

What CHROs Should Prioritize:

• Identify high-impact use cases that solve real problems
• Pressure-test vendor claims with pilots and benchmarks
• Track adoption and outcomes early with clear goals

• 8. AI Fluency Becomes Baseline for HR Professionals

AI literacy is no longer optional. While only 2% of HR job postings currently list AI skills as a requirement, demand is growing at 66% year over year, faster than any other sector.

The Confidence Gap:

Today, only 35% of HR professionals say they feel equipped to use AI technologies.

The Learning Path:

Self-exploration is leading the way: 38% of HR practitioners are building AI skills by experimenting with tools, trialing features, testing prompts, and learning by doing.

Building HR Innovation:

• Experiment in safe spaces with sandbox tools
• Share peer learning through communities of practice
• Balance experimentation with ethical guardrails

• 9. Human Strengths Define HR's Future Impact

As AI handles more technical work, human capabilities become the differentiator. Nearly three in five employers say soft skills are more important today than five years ago, and demand for social and emotional skills is expected to grow 26% by 2030.

The New Core Competencies:

• Empathy and emotional intelligence
• Ethical judgment and decision-making
• Communication and influence
• Culture-building and trust

Why This Matters for CHRO Leadership:

These skills are especially important in moments of uncertainty, where HR is called on to guide leaders, support employees, and hold space for complex conversations about change.

Action Steps:

• Continuously develop your human capabilities
• Lead by example with emotional intelligence
• Integrate human touchpoints into all HR programs

• 10. Workforce Planning Expands Beyond Jobs and Roles

Traditional job-based workforce planning is giving way to skills-first approaches. Skill-based organizations are 57% more likely to anticipate and respond effectively to change.

Real-World Success:

Three-quarters of Mastercard's workforce is now registered on its internal talent marketplace, helping unlock 100,000 hours of capacity and $21 million in savings through internal mobility alone.

The People Strategy Shift:

Instead of filling roles, CHROs are asking: What capabilities are needed for specific initiatives? How can they be assembled across employees, gig workers, partners, and AI agents?

Implementation for HR Professionals:

• Map skills dynamically using AI-enabled platforms
• Launch skills-based pilots with teams formed on capabilities, not titles
• Enable internal mobility with clear, skills-focused pathways

• 11. Leadership Expands as Management Shrinks

Organizations are streamlining structures in what's called "The Great Flattening." The number of managers globally has dropped by over 6% in the past three years.

The Shift in Focus:

While administrative management shrinks, human-centered leadership becomes more essential. Organizations are moving toward informal, distributed, and situational leadership.

The Evidence:

A study comparing formal and informal leaders across 161 variables found that informal leaders consistently scored higher on shared vision, communication, relationships, and character.

What CHROs Should Do:

• Redesign leadership programs to focus on influence and empathy
• Recognize distributed and informal leadership at every level
• Support managers transitioning from admin tasks to coaching roles

Conclusion: The CHRO's Roadmap for Success

The HR trends shaping 2026 point to a future where technology amplifies human capability rather than replacing it. Organizations that adapt quickly, invest in the right skills, and embrace responsible innovation will thrive.

The opportunity for HR leadership is clear: contribute to AI strategy, strengthen human capabilities, and redesign workforce planning for a skills-first era. These changes are already underway, and how CHROs respond will shape both business outcomes and the future of work.

Now is the time to act with confidence, bring others along, and build the kind of HR function that creates lasting value for both the organization and its people.