Generative AI seen transforming workforce productivity and HR practices

Generative AI is reshaping workforce productivity and human resources strategies, according to recent research and industry leaders.

A study by the National Bureau of Economic Research reported that access to AI tools increased worker productivity by an average of 14%, with gains reaching 35% for novice and low-skilled employees.

Tech CEOs remain divided on AI’s workforce impact. Klarna CEO Sebastian Siemiatkowski announced that the buy-now-pay-later firm stopped hiring because AI can do most of the jobs that humans do. In contrast, Nvidia CEO Jensen Huang argued that workers are not going to lose their jobs to AI – but they could lose it to somebody who uses AI.

A KPMG survey found that administrative roles face the greatest risk from AI, though effects vary across industries. In manufacturing, 20% of respondents expected benefits from AI, while 24% anticipated negative effects, indicating a complex, sector-specific impact.

Research on ChatGPT adoption in Denmark found that half of workers surveyed had used the AI tool, with younger, less-experienced, higher-achieving, and male employees leading adoption. Employer restrictions and limited training are slowing full uptake, but workers do not appear to fear job redundancy as a reason for avoiding the technology.

Experts emphasise workforce adaptation strategies. Marcel Lukas of the University of St Andrews highlighted the importance of lifelong learning and AI literacy, stating, “Understanding how to use AI tools effectively is becoming as crucial as traditional job skills.” He also said organisations must “invest in employee training and development while implementing clear guidelines for AI use.”

Read the full story to see how AI adoption will shape HR strategies and workforce performance in 2026.

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