CHROs Must Redefine Employee Performance Amid AI Evolution

Redefining Performance in the Age of AI

As we approach 2026, Chief Human Resources Officers (CHROs) stand at a crucial crossroads. The advent of artificial intelligence (AI) has begun to reshape our professional landscape, shifting the very definition of what performance means within organizations. Traditionally, HR success has relied heavily on operational efficiency, a focus that now appears outdated as AI streamlines many of these functions. According to global research from Workday, while a notable percentage of employees report increased productivity thanks to AI, a significant portion of these gains—almost 40%—vanish due to rework and endless verifications. This paradox presents a looming challenge for HR leaders: the ‘AI tax’ has arrived, and addressing it will require a redefinition of organizational performance.

Embracing a Strategic Shift

A fundamental transformation is underway in HR as the focus shifts from traditional, vertically-oriented operations to a collaborative, horizontally-focused approach. Aashna Kircher, Group General Manager at Workday, emphasizes that CHROs must now align closely with business leaders to navigate the dynamic changes in workforce structures, job roles, and required skills. It’s no longer sufficient to just support compliance and administration; HR must now drive strategic initiatives that enhance employee engagement and optimize talent management practices.

Unlocking the Full Potential of AI

The challenge lies not in the adoption of AI itself, but in the broader cultural transition that HR must lead. Many organizations, despite implementing AI technologies, have not yet updated their job descriptions and role expectations. This dissonance between advanced tools and outdated structures is where HR can step in. By hosting cross-functional teams focused on specific projects rather than rigid departmental duties, HR can create a high-performance culture that values innovation and collaboration.

Preparing for the Future of Work

The implications of AI are profound. Forward-thinking organizations are exploring strategies that not only integrate AI within workflows but also redefine the nature of work itself. This will require a shift in how organizations think about workforce optimization and continuity planning. CHROs now have the opportunity to lead this change towards a people-first leadership style that prioritizes human talent while leveraging AI to enhance productivity.

Concluding Thoughts: The Role of HR in 2026

As we move into a future where AI becomes increasingly ingrained in the workplace, CHROs must adapt their strategies to not only manage talent but also to facilitate a robust employee experience optimized for AI. The role of HR has transformed from merely a support function to one of strategic importance, where driving engagement and fostering a high-performance culture becomes critical. Leaders who are proactive in redefining performance measures within their organizations will not only improve employee retention but also ensure that their organizations thrive in the AI era.