As AI rapidly transforms workplaces, employees are on edge.

Roughly two years after ChatGPT's release sparked widespread interest in generative AI, it's becoming clear that most workers' jobs will fundamentally change — and some may disappear. An analysis by the International Monetary Fund published in January forecast that artificial intelligence would affect nearly 40% of jobs.

But the impact of AI on employment is complex and far-reaching. Some roles may become obsolete; others may be augmented or even created by AI. Workers are simultaneously experiencing anxiety, doubt, and excitement. What new skills will I need to develop? How can I stay relevant? And importantly, is my organization prepared for this AI-driven future?

Whether employees can trust their organization's leaders to navigate these opportunities is a pivotal question, said Brian Solis, the head of global innovation at ServiceNow, a cloud-based automation platform, and author of the book "Mindshift: Transform Leadership, Drive Innovation, and Reshape the Future." He said that while many executives recognize AI's promise in increasing efficiency by automating repetitive tasks, they often fail to grasp the technology's profound potential.

"Leaders talk about the new normal or the next normal, but then they natively snap back to business as usual," Solis said. "It's the leaders who explore and ask: 'What if? Who will unlock entirely new ways of working?'"

Workers themselves have a responsibility to learn and grow, he added. They need to experiment with new technologies both in and outside work and challenge themselves to push beyond their comfort zones. "You need to literally rewire your brain," he said. "If you're waiting for someone to tell you what to do, you're on the wrong side of innovation."

'Workers need to be proactive'

Despite the breathless headlines about AI changing everything about the way we work, the reality is more mundane.

In a quarterly Gallup survey of American workers conducted in May, seven in 10 respondents said they never used AI in their jobs, and only one in 10 said they used it regularly. The survey used a random sample of 21,543 working adults. Among those who said they did use AI, the most common applications included generating ideas, consolidating information, and automating basic tasks.

Still, investment in AI continues to surge. A report from IDC predicted that global spending would reach $632 billion by 2028, more than double what it is now, covering AI apps, infrastructure, and related services.

Companies are investing in AI to avoid falling behind, said Mansour Javidan, an expert in digital transformation and the executive director of the Najafi Global Mindset Institute at Arizona State's Thunderbird School of Global Management. "There's a lot of hype driven by board expectations, and that's led to a herd mentality to move quickly," he said. "No CEO is going to look bad by investing in AI right now."

Workers, meanwhile, are caught between uncertainty and anticipation. "There's a disconnect," Javidan said. "At the highest levels of the organization, there's a lot of excitement about AI. But among lower- and midlevel employees, there's a good deal of anxiety and ambiguity because there's no clear path."

But "workers mustn't rely on senior executives and hope things will turn out rosy," he said.

Javidan advises employees to seize development opportunities within their organizations and seek out online courses. Many top universities, including MIT and Stanford, provide free classes and workshops to help people build their skills. Grassroots and community-based learning groups, such as Women Defining AI, can be valuable resources.

"Workers need to be proactive and educate themselves," he said.

AI as a strategic collaborator

Beyond formal training and coursework, getting comfortable with AI requires a fundamental mindset shift, experts say.

"We were born with skills like curiosity, wonder, and imagination, but we often unlearned these in schools," Solis said. "The aim with AI should not be to generate expected answers or reinforce existing thinking but to challenge our conventions."

Solis said he uses AI as a tool for perspective taking, asking it to generate responses from the personas of the Apple founder Steve Jobs and Walt Disney. This approach helps him identify blind spots, explore alternative viewpoints, and seek inspiration. "They're my personal coaches," he said.

Molly Sands, the head of the teamwork lab at the software company Atlassian, which studies teamwork in the age of AI and distributed work, recommends viewing AI as a creative partner, not just a task-completion machine. "The people who are saving the most time and seeing the biggest benefits are those who see AI as a strategic collaborator," she said.

This involves engaging with AI through dynamic, iterative conversations — much like working with a team of experts, she said. A new study by researchers at the MIT Sloan School of Management backed this up, finding that human-AI teams showed the most promise in creative tasks like generating content and imagery and translating software code.

"A lot of people use it for one or two use cases, but the growth we're going to see in the next year or two is the people who think about it more ubiquitously," Sands said. "Agents will be a key driver of this."

Her team at Atlassian, for example, has developed a custom agent designed to help employees write more clearly. Essentially, she said, workers "word-vomit" into the agent with information about their audience, context, and key details. The agent then offers up a tailored draft in the worker's voice.

"Our workdays are consumed by writing emails, creating slide decks, and other routine tasks," Sands said. "If AI can take on some of this load — freeing us up for creative thinking and solving meaty problems — the better off we'll be."

The value of soft skills

Learning how to work with AI is imperative for most workers, but it's important to recognize that human skills remain essential.

After all, said Hakan Ozcelik, a professor of management at California State University, Sacramento, the value of human workers lies in their cognitive, behavioral, and emotional abilities. "There are all sorts of skills that AI doesn't have yet, and maybe never will," he said.

"Humans are inherently social beings, constantly interacting with customers, colleagues, competitors, and their physical environment," Ozcelik said. "These interpersonal skills are invaluable assets for any organization."

While AI can process information and perform repetitive functions with speed and accuracy, it lacks the soft skills necessary for effective communication and strategic decision-making. A report by Cornerstone, a skills-development platform, said that while generative-AI-related job postings had risen 411% since 2023, the demand for soft skills such as leadership, communication, and emotional intelligence outpaced digital skills by 2.4 times in North America and 2.9 times in Europe.

This is why Ozcelik advises employees to embark on what he calls "a process of professional soul-searching." Closely analyze your daily activities to determine your unique contributions and core competencies that cannot be outsourced, he said: "Dissect your work and look at what you offer your organization in a given day or a week."

Also, identify areas where AI could offer assistance. For example, teachers may realize that while AI can handle grading for grammar and syntax, they should focus on evaluating students' ideas and nurturing creativity. Similarly, healthcare professionals can leverage AI for administrative tasks or data analysis while dedicating more quality time to patients.

In an AI-driven world, the need for human skills will not change; instead, these skills will become even more vital as workers learn to collaborate effectively with technology, Ozcelik said.

"It's about what you contribute and the value you bring," he said.

• Alicia Pittman, BCG's global people-team chair, is a member of BI's Workforce Innovation board.
• She says building a company culture with opportunities for two-way learning and conversation is key.
• This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

Alicia Pittman, the global people-team chair at BCG, has been at the consulting firm for nearly 20 years. It's a testament, she said, to the company's culture.

"It's a place built to make talent do things that they didn't even know they could do," Pittman said. "I'm included in that. I love the learning that comes with it."

Pittman said one aspect of leadership development she's focused on is ethical practices. "We teach and train our people to understand how small choices that don't seem like major ethical choices matter," she said. "The responsibility is to show up with high ethics in everything that you do and think about the bigger picture of how you do things."

She said the firm had implemented programming through partnerships to help the company's leaders navigate the need to drive innovation ethically: "It's a place that we continue to invest because it's quite important for us."

The following is edited for length and clarity.

Where is BCG on the adoption curve of artificial intelligence, and what do you want to see in 2025?

I am excited about how BCG is driving change and grabbing the reins on generative AI. Gen AI is important to our clients, industry, and people.

We have a suite of tools, some of which we developed internally and some that are available off the shelf, that we've made available to all of our staff. Nearly everyone is a user to some degree.

What we're focused on now is moving from casual use to what we refer to as habitual use. It's habitual use that gets the value so that you can change how work gets done, based on the frequency, sophistication, and depth to which they use the tools.

We have a lot of enablement resources for our people, both as individuals and as teams, to make sure that we're moving up that habitual usage curve as quickly as we can. A firm like BCG is under pressure to stay on top of things because its clients look to us.

So how do you strike that balance and not go so fast that you risk leaving some of your people behind? We have an enablement network of more than a thousand people who are there to help both individuals and teams adopt gen AI. It's in all of our core curriculums.

Just this fall, we held AI days across every one of our offices at BCG with hands-on training. So we have people who are naturally there and ready for it, but we're also investing heavily to bring people up the curve.

You've mentioned in Workforce Innovation-board roundtables that apprenticeship is now a two-way street. What advice would you give leaders looking to deploy apprenticeships differently?

At BCG, we're fortunate to have a pretty flat structure so that you always have a good proximity between your senior leaders and all your staff. There are two ways we focus on helping to support this idea of two-way mentorship.

One is we just talk about topics. I recently wrote a piece about a mental-health town hall we held. It was quite moving. We had BCG employees who were generous and vulnerable in talking to thousands of people on a virtual town-hall panel about their struggles with things like addiction, grief, and depression, both before their time at BCG and during their time at BCG, and how they work through it.

It's about having those difficult conversations, getting the points out there, and starting to have shared language or shared opportunities to talk about these topics.

The AI days that I mentioned already are another way we do this. A lot of it is about getting cross-cohort connections on technology and other topics, creating forums so that people can talk about it.

The other is ensuring continual, structured feedback. Our staff provides 360-degree feedback all the time. It's an important part of what we do, and we're piloting doing it even more frequently. For example, we're giving people 360 feedback on how to be an inclusive leader. So it's both the formal mechanisms and also just creating the formats and discussions.

So much of culture and moving culture forward is really about having the language so we can share and talk about things. Creating those forums helps. It's an invitation to engage in productive ways.

What innovations are happening around DEI, especially as the topic has become more politicized?

DEI is built into our business model. We need great talent. We grow way faster than our talent pools, so just to get people in at quality, we need to be able to reach a lot of people; we need them to thrive.

Our business requires innovation, which requires diverse thought and experience. So, for us, it's quite core. One of my areas of focus is on inclusion and inclusive leadership. In some ways, it's the simplest thing to focus on. We all know that when people feel comfortable being themselves at work, you get the best out of them. They're most motivated, ready to take risks, ready to collaborate, and all of those things.

In North America, where we have the best statistics, 75% of our workforce is part of one or more of our DEI groups. Whatever intersectionality people have, whatever group they belong to, it's about how you make everybody able to show up at their best. That's really where our focus is.

• Marjorie Powell, AARP's CHRO, is a member of BI's Workforce Innovation board.
• Powell says creating a collaborative learning environment is key to helping employees adapt to AI.
• This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

As the chief human resources officer at AARP, Marjorie Powell devotes much of her professional energy to meeting the needs of the multigenerational workforce. These days, much of that involves navigating AI's impact to ensure every employee at the nonprofit is prepared for the technological changes shaping the workplace.

"Our goal in everything we do for our employees is to provide the resources, support, and capabilities they need to make good decisions within the company's guidelines," she said. "We take the same approach with AI."

Powell's mission extends beyond AARP's workforce. As an advocate for the 50-and-over demographic, she champions the adaptability and contributions of older workers in a tech-driven economy.

"There's an assumption that people over a certain age are not comfortable with technology, but what's overlooked is that many older people — particularly those at the end of the baby boomer generation — were at the forefront of this technological revolution," she said.

The following has been edited for length and clarity.

How did AARP handle the introduction of AI in its workforce?

We decided to use Copilot because we're already a Microsoft company. We got enough licenses to set up a working group with key people we thought would be super users. The idea was to experiment with AI tools and see how they fit into our workflows.

We wanted to learn and figure out what works and what doesn't. Then, we could make a decision about how we were going to roll it out to the company, since one, it's costly; and two, we wanted people to feel comfortable with it.

What were some of the outcomes of the working group, and how did those results shape the way AARP approached training and support?

We issued a policy, a generative AI use case approval process, and a mandatory training for all staff to complete to learn how to use gen AI in the workplace. The training focused on internal and external use and the types of information that can be shared, public versus private, and so on.

We encouraged our staff to 'Go out there and play with it.' We then surveyed them and asked, What are you using it for? What are some great use cases you've developed? How's it helping you enhance your productivity? How are you using this tool to further the AARP mission?

We also considered what existing structure we could use to encourage staff to use AI and explore the technology. We already had a structure in place called Communities of Practice — groups where employees learn and share. It's like an employee resource group (ERG), but focused on learning and development within industry, so we used this model to create an AI Community of Practice.

What are some of the 'great use cases' for AI for your HR team specifically?

We get a lot of calls and emails on simple things about AARP benefits and policies. People ask questions like: I'm having knee surgery next month. How do I sign up for FMLA? or Where do I find my W2? or I bought a Peloton. Is that eligible for the fitness credit? So we started building an HR chatbot to provide that kind of information. It's much easier for employees to ask the chatbot instead of overwhelming a team member with those queries.

We're currently piloting the chatbot with 300-400 frequently asked questions and answers preloaded. It directs employees to the right information without them having to dig and helps us understand what additional information we need to include.

Many employers are using AI tools in hiring, but there are concerns about potential bias. What's your perspective on this?

We use AI for sourcing candidates. All AARP recruiters are certified to conduct Boolean searches to increase the accuracy of identifying talent with specific skill sets in the marketplace.

But when it comes to screening and interviewing, we don't use AI. We find that the technology is still very biased, specifically when it comes to age. Until the technology matures enough to minimize bias, I don't believe it's a good idea to use it without that human component of judgement.

Speaking of age, what are your thoughts on ageism in the workplace today, especially from companies hesitant to hire older workers?

Companies don't want to be the kind of organization that isn't welcoming to talent, regardless of age. Due to the economy and the rising cost of healthcare, many people in the 50-plus community are re-entering the workforce.

Many in that age group have valuable skills and experience and are eager to return. They often say, 'I don't need to be in a leadership role. Been there, done that. I just want to help and be of use.' They also naturally take on mentorship roles, as people seek their guidance. By embracing this segment of the workforce, companies can gain huge value.

What do employers misunderstand about older workers and technology?

Baby boomers were at the forefront of the technology era, and they're more comfortable with technology than many people realize. In fact, they are among the largest consumers of technology products. Tech companies really need to pay attention to this demographic.

I look at myself — I'm about to turn 60 — and I was selling Commodore 64s when I was in high school. I've seen everything from floppy disks to CDs, to cassette tapes, to 8-tracks, to digital streaming and everything else. I've experienced all versions of technology, and I've adapted. I'm still willing to adapt, and I'm still learning.

This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

Diversity, equity, and inclusion programs have become the subject of a heated, politicized debate over the past few years.

Several major corporations, including John Deere, Microsoft, and Molson Coors, have made headlines recently for rolling back their DEI initiatives.

Meanwhile, Walmart, the world's largest retailer, announced it would no longer use the acronym in its communications and would not extend its Center for Racial Equity, a nonprofit established in 2020 with a five-year, $100 million commitment to address racial disparities.

Even so, as we've reported in this series, many companies remain committed to the values of DEI — but are shifting their strategies for a new era. Whatever the motivation of the companies, it's clear that DEI is undergoing a period of change.

Business Insider asked its Workforce Innovation board to participate in a roundtable to discuss how DEI programs are evolving. We wanted to find out what structural changes are happening, how companies can continue to build trust with employees, and what role artificial intelligence is poised to play.

The consensus around the virtual table was that the focus of the DEI story is shifting to business outcomes and the skills needed to achieve them. "We can't do it the old way," Purvi Tailor, the vice president of human resources at Ferring Pharmaceuticals, said. "We have to have the conversation in a new way. It becomes much more about inclusion and changing mindsets and creating awareness about your own biases."

Skills-based hiring is one way companies are working to identify diverse candidates organically. "Let's focus on the skills that are required for the future of work and what we are looking for from leaders in our company," Maggie Hulce, the chief revenue officer at Indeed, said. "And then be more consistent in the application of holding that bar."

By homing in on the skills organizations need to succeed and how to use AI tools to help surface in-house talent, companies could move the DEI story away from conflicts and focus on its benefits.

"It dismisses this notion that you have to lower the bar if you want diversity in your organization," said Spring Lacy, the global head of talent acquisition and DEI at Verizon. "We've got lots of super smart, super skilled people of color, women, people with disabilities, LGBTQI community, who just aren't seen for all of the biases that you talked about. You don't have to lower the bar."

Roundtable participants included:

• Anant Adya, executive vice president, service offering head, and head of Americas Delivery, Infosys
• Lucrecia Borgonovo, chief talent and organizational effectiveness officer, Mastercard
• Chris Deri, president, Weber Shandwick Collective
• Maggie Hulce, chief revenue officer, Indeed
• Spring Lacy, vice president, chief talent acquisition and diversity officer, Verizon
• Purvi Tailor, vice president of human resources, Ferring Pharmaceuticals USA

Here are six key takeaways from the discussion.

Skills-based hiring, supercharged with AI tools, helps companies find 'hidden figures'

Skills-based hiring is a strategy that some companies are using to identify candidates and reduce bias in the hiring process. The approach focuses on the skills needed to fulfill the role, minimizing qualifications like college degrees or previous job titles.

With artificial intelligence, talent leaders can accelerate the hiring process and uncover strong candidates within their companies that they might have missed before.

Lacy, who was previously an HR leader at Prudential, said AI is empowering existing employees to showcase their abilities more effectively.

"When went to recruit internally, and we pulled people based on the skills profile and not based on proximity bias or any other bias, our slates were inherently more diverse," Lacy said.

The critical piece for companies is to figure out the best way to capture an accurate and comprehensive view of employees' skills.

Verizon uses the Workday HR platform and is piloting a program with its partner company, Censia, that uses an AI tool to help employees craft their profiles.

Lacy has seen how difficult it can be for employees to isolate their skills in ways that might help them be identified for new opportunities. "When we said to employees, 'Go build a skills profile,' the page was blank," she said. "It was really hard for people to get started." AI tools can pull information from a range of sources and serve up a framework that guides employees through the process.

Mastercard has launched an employee-skills initiative with the software company Gloat. "It has been a really great way to democratize access to opportunities for employees," said Lucrecia Borgonova, Mastercard's chief talent and organizational effectiveness officer.

The outcome for companies can be a more diverse talent pool from inside the house.

Lacy said Verizon is conscious of the potential for bias in the AI programs, but early indicators suggest that more individuals are being considered for roles than in the past.

"We are uncovering hidden figures in this organization because there are people who we don't know, because they are not well networked, they don't have sponsors," Lacy said. "If not for this technology, we wouldn't have known that they were there, to be able to lift them and perhaps provide them with other opportunities."

Leaning into the 'I' of DEI — inclusion

DEI programs have many aspects, including employer branding and attracting a diverse talent pool, screening and hiring, and compensation.

Inclusion relates to a person's workplace experience and their sense of belonging at an organization, which research suggests makes people want to join and stay at a company. Benefits are an essential part of that employee experience, and companies may want to think about how these packages reflect their values to staffers and prospects alike.

Ferring Pharmaceuticals introduced a program in 2022 that includes unlimited financial support for creating a family — through IVF, adoption, surrogacy, or birth — for all employees, regardless of gender or sexual orientation.

Ferring's Tailor said it is one way that the company emphasizes its approach to its entire workforce.

"We talk about more of the 'I' than we do about the 'D' and the 'E,'" Tailor said. "We do it to show the kind of culture and working environment that we want to have. It's all about inclusion and bringing your whole self to the workplace."

Linking AI tools with culture and leadership

As companies develop new hiring strategies, culture does not stand still.

"Inclusion and belonging are essential parts of the culture, the value proposition, and key to driving the outcomes of our business," said Mastercard's Borgonovo. "It's really important that we drive shared accountability across our 34,000 employees around the role that each of us has to collectively play in creating this culture of inclusion where everybody feels that they can belong."

Borgonovo said that Mastercard is exploring ways to leverage AI to help business leaders across the organization improve efficiency and be more intentional about DEI and other workforce goals.

"How do we enable people, leaders, from an automation or efficiency standpoint? How do we help them be more proactive?" she said. "How do we help them create more bandwidth by automating certain processes so then they have more time to coach and develop their teams."

She said the company is exploring how AI can be used to coach leaders to role-play and get feedback on how they engage with their teams. "AI can be your coach, your copilot, and help augment your leadership," she said.

Ditching the DEI silo

Indeed's Hulce said a lot of time goes into optimizing the company's structure. "How do you make it the norm that equity needs to be built into processes, period," she said.

It's not just about interviewing and hiring diverse candidates, but about leading teams through every opportunity and decision, including promotions, performance bonuses, and assignments.

"How do you measure that? How do have regular conversations with managers at different levels in the organization about the expectation that we will be looking at equity in all of these steps," Hulce said.

Indeed once had a DEI team that worked parallel to the HR function. But when the previous HR leader left the company, they decided to reorganize and embed the DEI discipline across the business, elevating the previous head of DEI to chief people officer.

Hulce said realigning DEI was essential to scaling goals, standards, and accountability across the company. "It's almost an impossible task to ask a separate group to influence everybody else unless it's built into core processes somehow," she said.

Infosys is also considering its optimal DEI structure. "We are slightly decentralized," Anant Adya, an executive vice president, said. The global company has a centralized corporate DEI team, with DEI councils at the individual industry units. Adya said the company will leverage AI tools to help measure effectiveness.

Hulce emphasized the need to regularly and consistently review management decisions. "It can't be just once a year," she said. "You evaluate, you check, and if there's a correction to be made, you say, 'OK, guys, something looks amiss.' The expectation is we will be following equitable processes."

Using AI to scrutinize hiring, while retaining the human touch

Adya said Infosys is using AI to analyze patterns in its hiring data.

"It is very important to look at and analyze the data based on how hiring patterns are being used and if there is any bias in the hiring process itself," he said.

AI will grow increasingly important in analyzing the efficacy of various recruitment sources. "A lot of times we see that employee referrals actually work the best," he said. "But that might not be true when it comes to specific DEI initiatives."

By enlisting AI tools to analyze online sources, university partnerships, and other talent alliances and platforms the company is using, Adya said it should be able to optimize its approach around specific goals.

But all the AI analysis in the world does not negate the need for the human touch. Adya said that sometimes there's a perception at the company that hiring is being done only to hit certain DEI benchmarks and that the process is too onerous.

Adya said that hosting a "clear dialogue" about the company's decision-making process around recruitment methodology has helped employees understand the company's rationale.

"It's always better to sit down and explain why this is critical for the unit and why it is important," he said. "Sometimes open dialogues, going back to the old school, not using AI or gen AI, but just sitting and talking and removing that uncertainty and lack of transparency helps a lot."

Leveraging AI-powered insights to change the DEI story

Proponents of DEI maintain that a diverse, inclusive workplace yields better business results, and there are studies that also support that view.

Opponents of DEI, said Chris Deri, the president of Weber Shandwick's corporate advisory business, tend to focus on the methodology of achieving workplace diversity, such as companies actively seeking women for leadership positions, seemingly at the expense of male candidates.

"That's what DEI opponents are focused on," Deri said. "Like, how do you pull together a candidate pool, like having women candidates somehow be seen to be at the front of the line."

Deri said that companies should work to shift the perspective to DEI outcomes and tangible business benefits — and should leverage artificial intelligence to surface insights that might not be obvious.

"AI can do that in a way that human knowledge management and analysis is not going to be able to do," Deri said. "We can use the power of AI to look across our enterprises' data and knowledge and start to collect the outputs and outcomes of the principles of applying DEI. "

Deri said that if a large language model can be trained on the outcomes, such as attracting new customers, creating new products, and building community trust, "that might be something that uses technology to help the storytelling about DEI. We really need to change the entire story now."

• The office — and the role it plays in companies — is at the center of workforce change.
• Neil Murray, a Workforce Innovation board member, discussed workspace purpose, leadership, and AI.
• This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

Commercial real estate has experienced a tumultuous few years, with pandemic-related office vacancies and high interest rates. The sector is also at the epicenter of significant changes to the global workforce.

"It is the most incredible time to work in this industry," said Neil Murray, the CEO of Work Dynamics at JLL. "We are at the center of some really important strategic conversations about the very nature of work."

Work Dynamics is a division of the global real-estate corporation that collaborates with corporate clients on technology, employee experience, and design strategies. Murray says its goals are to help client companies attract and retain employees and foster productivity.

In its annual global Future of Work survey, which involved 2,300 corporate real-estate and business decision-makers, some 64% of respondents said they expected to increase their head counts by 2030.

JLL's third-quarter earnings beat estimates — it reported revenue of $5.87 billion, an increase of 15% from the same period in 2023.

Murray talked about companies mulling the purpose of the office, how leaders can incentivize employees to willingly go into their workplaces, and how to harness AI for concrete breakthroughs.

The following has been edited for length and clarity.

How have the priorities of your clients changed in the aftermath of the COVID-19 pandemic and the changes that brought to office life?

What we do for a living changed dramatically through the pandemic. Previously, corporate real estate may have been seen as a sort of factor of production. We weren't intentional about why we had space and where we had it, what we wanted that space to do, and its function. Is it a cost line, or is it an investment?

Suddenly every chief executive in the world had a view on real estate. It brought much more intentionality about its function within the organization and its ability to contribute to broader organizational goals.

Our business now is about helping our clients navigate that complex situation where they're planning to grow their workforce over a number of years, balancing what that might look like in the macro environment we're living in. It's a very complex environment for leaders to think through.

What's the state of return-to-office you're seeing among your clients?

There's a fairly even split between companies that are embracing some sort of hybrid policy and those that want their people back full time.

In our Future of Work survey, we found that 85% of organizations had a policy of at least three days of office attendance per week, and 43% expected the number of days in the office to increase by 2030.

It's still very much an evolving scenario. The metrics of productivity that we've relied upon to make database decisions don't always capture the challenges that businesses are facing. The time people spend doing emails or logged in doesn't necessarily translate to productivity.

One client, for example, has found that while their productivity metrics looked just fine, the number of patents had fallen off a cliff from prepandemic levels.

That led to this notion that what we're missing is, as the phrase goes, people painting on the same canvas at the same time.

Now we've seen some high-profile companies coming out, wanting more time spent in the office, saying there's something lost around culture and the collective sort of personality and purpose of an organization because of remote working. Companies are finding it really difficult to balance that.

What aspects of the workplace are most effective for enticing workers to return to the office?

The overwhelming evidence is that it's not a single amenity but it's other people — and, in particular, leaders. Companies that are intentional about their leaders being present have seen the greatest results in terms of people coming back.

What people crave is proximity to leadership for personal development. So without getting leaders back into the office, you can add whatever amenities you want and you'll still have significant challenges.

Clients that enacted three-days-a-week mandates but didn't focus on leadership presence have exactly the same attendance as those who didn't have three-day mandates.

Could that be attributed to people just wanting to be visible when the boss is around?

I wouldn't purport to understand entirely the psychology of humans, but I do believe that our research and my own experience is that people enjoy other people. The most important amenity in any workplace is that notion of community and other folks to chat to.

The notion of apprenticeship in all aspects of what we do is very real. The ability to learn from others, to absorb how things are done or navigate the complexities of an organization, is really difficult to do among 30-minute slots. You don't get to sort of naturally observe through osmosis what's happening in the world around you.

You mentioned in one of our roundtables that companies need to focus on consistent, breakthrough innovation across the organization as opposed to incremental innovation from a centralized department or team. Why is that important, and how can leaders work toward that goal?

When you centralize innovation, you can get stuck in the paradigm of trying to incrementally improve a particular way of working. But the technology breakthroughs mean that it's fundamentally shifting how we do business.

In my business alone, the rapid adoption of AI tools in daily business use has surprised us all. We are an organization with 250 years of data on everything from how buildings are occupied and used to what they cost to run to their utilities to their capital values.

The tools available to us now to cut and splice and curate and make connections in that data, which we were never able to make before at scale, are driving us to think about the business in completely different ways.

Breakthrough innovation comes about when you use a large language model to interpret multiple data sets and then you start to ask the second, third, and fourth questions, going deeper and deeper into a particular topic. You find things that you could not have possibly seen or connected otherwise.

This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

When Wex, a payments platform based in Portland, Maine, set an ambitious goal to double its revenue, to $5 billion, within five years, it recognized that achieving this would require changes in its operational approach and strategic focus. In 2022 it created the role of chief transformation officer and tapped Kristy Kinney, who previously led the company's pandemic response, for the job.

Kinney's mandate touched every aspect of Wex's operations, including adopting generative artificial intelligence in call centers, standardizing project-management systems, and identifying new revenue streams. Wex says Kinney's led 230 initiatives, hit 2,300 project milestones, and worked with and advised more than 100 leaders across the organization.

"We were intentional about not just delivering outcomes," Kinney said, adding that a lot of the change "was about building a culture of always-on transformation in our workforce."

As companies across the US confront complex challenges that require overhauling strategies, reimagining business models, and adapting workforce dynamics, many are appointing chief transformation officers to drive these changes. Boston Consulting Group said it found that CTO hiring surged by more than 140% from 2019 to 2021, led by companies in consumer and industrial goods and financial institutions.

Alicia Pittman, the global people team chair at Boston Consulting Group, said the trend reflected a shift in how organizations manage change. She told BI these specialized leaders are appointed to head up specific cross-functional projects and eventually integrate their work into everyday operations. The role is often transitional.

"Their job, in my opinion, is to sort of put themselves out of a job," Pittman said.

Ravin Jesuthasan, a global leader for transformation services at the consulting firm Mercer who wrote the book "The Skills-Powered Organization," said that while this position was relatively new in the array of C-suite roles, it was emerging as "one of the most pivotal for navigating the future of work."

"It used to be that an organization would do a major transformation every eight or nine years or so, but today, due to the velocity and volatility of change, companies no longer have that luxury," he said. "They now need a dedicated leader whose job it is to look around corners, stress-test existing strategies, and figure out when to pivot if necessary."

So what exactly does a CTO do?

The C-suite has expanded over the past few decades and now brims with new titles.

The core figures, including the CEO, the chief operating officer, and the chief financial officer, focus on delivering quarterly results. Other positions center on functional areas like technology, human resources, and marketing, and strategic areas like employee engagement and sustainability.

Jesuthasan said that among these newer roles, the transformation officer stands out as forward-looking. They're tasked with preparing the organization for the future. "They help see what's coming and identify potential disruptions," he said.

In addition, he said, they must deeply understand strategy and its implications for the organizational structure. They need to be adept at connecting different areas of the business. "CTOs help the organization develop a mindset of perpetual reinvention," he said. "They have the curiosity and willingness to challenge the status quo."

He added that strong people skills are also critical for CTOs. They need to have credibility with other executives, the ability to run experiments and test new ideas, and the skills to execute effective change management while bringing employees along.

Being a chief transformation officer, Jesuthasan said, is akin to "building the train while you're driving it down the tracks."

Brandon Batt, the chief transformation officer at Quadient, a company focused on digital transformation, knows this all too well. Batt, who was appointed in 2019, helped orchestrate sweeping changes at Quadient, including streamlining the company's divisions and simplifying the workflows in various departments.

"At the end of the day, my function is here to be the support, the glue, and sometimes even the driver behind change that's needed in the business," he said.

Change is a process, of course. Can a CTO's transformation efforts ever truly be complete? "In today's dynamic landscape for technology companies, I am not sure we will ever say, 'Mission accomplished,'" Batt said.

"We just announced a new plan for 2030," he said. "It's demanding, but leaning into it is where the magic happens."

'Change is hard'

The demands of managing organizational transformation are great, especially when initiatives span disciplines and address issues such as technological advancements, industry shifts, and evolving customer trends.

"Change is hard, and it can burn people out," said Chengyi Lin, an affiliate professor of strategy at Insead who studies digital transformation.

Lin believes the CTO role should be viewed as transient, ideally lasting two to five years. "I say this with empathy and sympathy for the individual as well as for the organization," Lin added.

C-suite titles have an important "signaling function," he said. Appointing a CTO sends a message to workers and stakeholders that the organization is committed to change. Making the role permanent could dilute its significance and risk suggesting the company is in a constant state of flux rather than pursuing meaningful transformation.

Lin argued that concluding the role after a finite period doesn't mean the transformation is complete — "it means that it's eventually folded into business as usual."

He described this approach as critical for maintaining employee engagement. Gartner has found that the average employee experienced 10 planned enterprise changes in 2022; in 2016, that number was two. It also found that workers' enthusiasm for supporting enterprise change dropped significantly over the same period.

Kinney recently wound down her role as chief transformation officer at Wex. The company is continuing to work toward its $5 billion revenue goal; revenue was $2.55 billion at the end of December last year. And Kinney has transitioned to a new position as SVP of health & benefits growth. This role involves integrating her transformation work into Wex's daily operations, what she refers to as "operational excellence."

"I used to joke that if I was in that job after two years, I ought to be fired," she said.