Every transformative technology arrives with both promise and peril, and generative AI (GenAI) is no exception. I’ve seen leaders swing between unbridled enthusiasm and deep unease—sometimes in the very same conversation. Some believe that, while AI won’t take away jobs, the people who know how to use these technologies will. Others feel the AI floodgates will open at some point, and we’ll have to rethink how humans are used in the workplace.
Meanwhile, the expectation to have expertise in the space feels overwhelming, and HR leaders want to ensure their organizations are prepared to get the most out of AI capabilities. Thus, they’re performing due diligence work to avoid the “garbage in, garbage out” problem. For example, a CHRO whose company has partnered with mine, Seramount, said they recently completed creating an AI governance structure. Now, they’re focused on understanding where AI can be deployed and what they can fully automate.
For CHROs, the challenge is clear: cutting through the noise to discern where AI can truly elevate the employee experience, workforce planning and organizational agility. My own reflections tell me this moment is less like a technology race and more like a leadership test. Are we willing to ask the harder questions—not just what AI can do, but what it should do?
Understanding The Hype Cycle
The AI transformation is well underway, but excitement peaked in 2023. Headlines declared the technology would revolutionize business and replace many, if not most, human workers. In just a year, however, sentiment shifted. In 2024, Indeed analysis indicated that there are no skills that an AI could fully take over.
The Hype Cycle, a model developed by Gartner to illustrate the stages of interest and adoption that new technologies typically undergo, serves as a helpful reference for understanding GenAI’s journey. There are five stages: innovation trigger, peak of inflated expectations, trough of disillusionment, slope of enlightenment and plateau of productivity.
In the beginning, new technologies generate substantial excitement and unrealistic expectations. Over time, as real-world applications and limitations become apparent, this enthusiasm tends to wane. Finally, genuine advancements and practical applications emerge, but this outcome can take a long time and effort to reach.
Just as there wasn’t a single rollout of the internet, GenAI isn’t a single technology with a single adoption curve. It’s a series of technologies, so we should expect multiple AI hype cycles with each new advance.
Where Should CHROs Focus During Hype Cycle Swings?
Whether we’re riding a high or navigating a low, there’s real work for HR to do when it comes to GenAI. This moment calls for action on three levels: embedding AI into our own workflows, preparing our people for AI adoption and tracking broader shifts in the labor market.
1. Integrating AI Into Team Workflows
From talent acquisition to performance reviews, there are many ways HR teams can begin leveraging GenAI. But success isn’t about chasing the latest tech. It’s about solving real problems at the department level.
One example is Accenture’s “Feedback Coach” (registration required), a tool that drafts written feedback based on post-project assessments. Embedded in Microsoft Teams and Workday, the Feedback Coach has been used by staff more than 3 million times and has increased input by 89%.
When choosing GenAI tools, follow three key steps: start small, identify practical use cases, then build from there.
2. Organization-Wide AI Readiness
AI enablement can’t be IT’s job alone. According to 2024 Gallup research, few employees feel they have the skills needed to incorporate AI into their day-to-day work. HR leaders need to foster a culture of readiness and ensure employees have the necessary skills to integrate AI into their workflows.
Hearst presents a useful case study in the benefits of customized training around GenAI adoption. The major publisher implemented a function-specific GenAI training program. The initiative trained advertising operations employees on AI technology to streamline their sales and media planning processes. The resulting increase in efficiency and desired outcomes demonstrates that when organizations invest in relevant training, successful adoption is not only possible but attainable.
3. Macro Labor Market Changes
Beyond internal application and employee readiness, CHROs must keep an eye on AI’s impact on skill demand in the market. The real risk now is a skills mismatch. AI will disrupt and displace many jobs, requiring mass reskilling for workers considering industries with more resilient or new AI-driven jobs. As demand for AI-skilled talent continues to rise, HR teams should focus on fostering critical soft skills like leadership, problem-solving and interpersonal skills.
Where We Go From Here
As generative AI continues to evolve, the temptation is to chase the latest tools or mirror competitors moves. But true leadership means resisting the allure of hype and instead grounding decisions in clarity, ethics and long-term value. CHROs are uniquely positioned to lead this discernment—not as technologists, but as stewards of culture, talent and trust.
The choices made today will shape both how organizations leverage AI and how employees experience its impact on their work and well-being. The question is not whether generative AI will transform our world; we know it already is. The question is whether we will meet this moment with foresight, responsibility and a commitment to putting people at the center of progress.
