Good morning!

Organizational change is difficult for both employees and leaders, but by taking a human-centered approach, CHROs can quell employee fears while generating excitement for new projects. Also in this issue:

😫 A potential solution for burnout
🏦 Employee lawsuit against Bank of America
😀 Boosting employee retention

Here's a look at what we're seeing, what it means, what we're anticipating, what's resonating and what you think about today’s workplace. Let's get SMART!

HR leaders are at a pivotal moment as they guide their organizations into a future shaped by AI. With 89% of businesses already utilizing AI tools, organizations face the pressing need to align people, processes and technology, which 62% of leaders say aren't working together effectively right now, according to a Workday report. The CHRO's mandate now includes designing optimal human-AI partnerships and transitioning toward a model where human and AI work as a unified engine to drive organizational progress.

Agentic AI systems require companies to reorganize workflows around outcomes and appoint mission owners to define objectives. When implemented correctly, such systems can execute end-to-end workflows, make decisions and coordinate activities across departmental boundaries, shifting automation from task-level to full process-level execution.

SmartTake: Success depends on leaders fostering AI literacy, involving employees in system design, and building trust in digital teammates. When employees participate in ideation and evaluation, and understand how AI augments their roles, organizations see smoother adoption and greater value.

AI is rapidly automating tasks in white-collar roles, with some major firms already reducing headcounts or limiting new hires due to AI integration. Estimates from Goldman Sachs suggest 6% to 7% of US workers could lose their jobs to AI, with entry-level hiring in AI-exposed jobs dropping 13% since large language models became widespread. Sectors most affected include software development, customer service and clerical work. However, while job displacement is real, reports indicate new opportunities are emerging in AI development, research and robotics.

Nearly 9 in 10 talent acquisition professionals report that their CEOs expect them to address the skills gap and build a workforce prepared for the future. This highlights the growing pressure on recruiters to align hiring strategies with long-term business goals, according to LinkedIn's Executive Confidence Index.