For years, HR success was defined by efficiency—faster processes, cleaner compliance and smoother administration. But as AI rapidly absorbs much of that operational load, a more uncomfortable question is emerging for CHROs: If efficiency is no longer the differentiator, what is?
According to new global research from Workday, this question is becoming urgent. While 85% of employees report saving between one and seven hours per week using AI, nearly 40% of those gains are quietly disappearing—lost to rework, error correction and constant verification of generic AI outputs. What appears on the surface as productivity, in reality, often masks a growing “AI tax.”
For Aashna Kircher, group general manager, Office of the CHRO, at Workday, this paradox highlights a deeper transformation underway—not just in technology, but in how organizations define high performance itself.
“Compliance and operations are still core responsibilities,” she tells HRM Asia. “But HR is increasingly being called to operate as a strategic partner—deeply embedded in how the business defines success for its people.”
See also: Disengaged employees’ high cost: Why culture matters more than ever
From operational support to strategic partner
Kircher describes a fundamental shift in HR’s orientation. Historically, HR functions were built around what she calls “North-South operations”—vertically focused on policies, transactions and administrative execution.
Today, that model is giving way to “East-West” operations: HR working laterally across the organization, supporting business leaders as roles evolve, skills shift and organizational structures are continuously redesigned.
AI has accelerated this transition. As automation takes over routine tasks, HR is being pulled closer to the center of enterprise decision-making—helping leaders rethink not only how work gets done, but what work should exist in the first place.
This shift is reflected in Workday’s research. Despite widespread AI adoption, 89% of organizations have updated fewer than half of their job roles to reflect AI capabilities. Employees are, in effect, using 2025 tools within 2015 job structures—a mismatch that fuels confusion, inefficiency and rework.
“AI is increasing capacity,” Kircher explains. “But roles, skills and processes haven’t evolved at the same pace. That’s where HR has an enormous opportunity—and responsibility.”
Yet for many HR teams, the biggest challenge is not technological—it is cultural.
Decades spent operating as an internal support function can make the transition to strategic driver deeply uncomfortable. Kircher believes the mindset shift requires HR leaders to build a far deeper understanding of the business itself.
“It’s not just about knowing HR,” she says. “It’s about understanding business operations—how value is created, where productivity really comes from and how different functions connect.”
She also points to a move away from siloed ownership towards project-based collaboration. Increasingly, organizations are forming cross-functional teams assembled around critical initiatives, rather than rigid departmental responsibilities.
This evolution mirrors broader workforce trends. As work becomes more fluid and AI-supported, success depends less on static job descriptions and more on how effectively people come together to solve problems.
AI is also reshaping the CHRO’s role at the leadership table—particularly in moments of uncertainty such as mergers, restructuring or long-term business pivots. Where HR once relied on historical reporting, Kircher sees a rapid move towards real-time scenario modelling.
“In the past, you’d spend weeks pulling data together,” she says. “Now, the expectation is that you can query information in real time and model different outcomes on the spot.”
But access to data alone is not enough. What elevates the CHRO’s influence, she argues, is the ability to interpret that information in context—anticipating the questions the business needs to answer and presenting leaders with viable options rather than static reports. This capability is increasingly critical as organizations confront complex trade-offs between growth, productivity and workforce sustainability.
The rise of fluid, AI-supported teams
Looking ahead to 2026, Kircher anticipates that organizational structures themselves will become more fluid. Rather than large, fixed hierarchies, organizations are moving towards smaller, adaptable teams with broad skill sets—supported by an ecosystem of AI agents that augment speed, insight and execution.
At Workday, this philosophy is grounded in what Kircher calls the AI-human partnership.
“AI and humans together produce better outcomes than either alone,” she says. “That belief shapes how we design our products and how we see organizations evolving.”
AI can process vast volumes of data, surface insights and accelerate decisions. But humans remain essential for context, judgement and prioritization—particularly when the stakes are high.
And as technical tasks become increasingly commoditized, Kircher believes, the most scarce—and expensive—capabilities in the labor market will be deeply human ones.
Judgement. Discernment. Intuition. Decision-making.
“These are skills that traditionally take years to develop,” she says. “But now, organizations need to build them much faster than ever before.”
Without this investment, AI speed can actually become a liability. Kircher points to the growing phenomenon of low-quality AI output—often referred to in the market as “AI slop”—where employees accept machine-generated work at face value, only to have others spend hours fixing it later.
Workday’s research quantifies this challenge. Nearly 40% of AI time savings are lost to rework, and only 14% of employees consistently experience clear positive outcomes from AI. Younger employees aged 25-34—often assumed to be the most digitally fluent—account for nearly half of those facing the heaviest rework burden.
The issue, Kircher emphasizes, is not effort—but capability.
“AI may suggest information,” she says. “But humans still have to decide what to do with it. That judgment muscle is critical, and it has to be trained intentionally.”
The leadership shift in an AI-enabled workplace
For leaders, this changes the definition of effectiveness. If technology can provide answers instantly, leadership value increasingly lies in asking the right questions and interpreting those answers with empathy and context.
Kircher highlights qualities such as curiosity, creativity and emotional intelligence as becoming more, not less, important in an AI-enabled workforce. Managers are no longer just overseeing output; they are guiding people through constant change, helping teams adapt their skills and maintaining trust in an environment where work itself is being redefined.
Having joined Workday in 2014, during the shift to cloud computing, Kircher has witnessed multiple waves of technological transformation. Despite the move from cloud to agentic AI, she believes one fundamental truth remains unchanged.
“Great organizations treat people as their strategic advantage,” she says.
Across industries and geographies, organizations that place people at the center—investing both in technology and in employee experience—consistently outperform. This includes building a single, trusted source of people data that enables visibility, transparency and informed decision-making.
In the age of AI, clean, consistent enterprise data has become even more critical. Without it, organizations struggle to generate reliable AI outcomes—no matter how advanced the tools appear.
Why AI alone won’t transform HR
Workday’s recent acquisitions—including Sana and Paradox—reflect this shift from passive systems to active workforce enablement. Rather than serving solely as systems of record, these technologies aim to become a “front door” for work—reshaping how employees interact with enterprise systems through AI-driven experiences that feel intuitive and consumer-like.
AI agents, in particular, represent a turning point. Unlike traditional analytics tools, agents do not simply analyze data—they help execute decisions end-to-end, from workforce planning through operational follow-through.
This evolution, Kircher says, is what turns insight into action.
Looking ahead five years, Kircher sees a clear dividing line emerging among HR leaders. Those who succeed will view AI not as a threat, but as a positive agent of change—and will actively build the organizational structures, skills and leadership capabilities needed to harness it.
Equally important is change leadership: the ability to bring people along, address uncertainty and create confidence in a rapidly shifting environment.
“The CHROs who thrive will be the ones who combine AI capability with human leadership,” she concludes.
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