AI reshapes the workplace as HR and tech teams collaborate to manage digital co-workers

Businesses across the globe are navigating the dual challenge of AI-driven disruption and workforce transformation, prompting closer collaboration between HR and technology teams. Chief information officers are joining forces with HR counterparts to integrate AI agents, digital co-workers performing tasks alongside human employees while helping staff adapt to new processes and organisational structures.

At Cisco, IT and HR are working together to define how a “virtual staff of AI entities” will coexist with 86,200 employees, questioning whether traditional chains of command remain relevant. Similarly, job-search platform Indeed operates a transformation office under technology leadership that partners with HR to scale AI solutions and support over 10,000 staff. 

Microsoft has taken a comparable approach, with corporate vice president of workforce transformation Katy George drawing on her HR strategy background to oversee AI integration across 228,000 employees, ensuring that learning, flexibility and workforce evolution remain central.

Despite these efforts, AI is already driving job reductions. Microsoft cut 15,000 roles across product and software teams this year, while PwC eliminated around 150 positions in marketing, HR and operations as it reshapes workflows around technology and data. U.S. firms collectively announced 153,074 job cuts in October, citing AI impact and cost controls.

Experts warn that by next year, 40% of Global 2000 roles will require interaction with AI agents, while AI-driven burnout could slash productivity by 15% by 2027. Organisations that successfully align HR, technology and culture will be better positioned to harness AI’s potential while maintaining workforce engagement and wellbeing.

Explore how leading firms are managing AI adoption and preparing employees for the digital co-worker era in the full article.