Good morning! Today, we're examining Disney's shift away from DEI language in the company's annual report. Also in this issue:

⚖️ Attorneys urge employers to maintain DEI efforts
🌍 HR leader: Instead of talking about DEI, practice it
🖥️ HR can lead AI transformations in organizations

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!

Disney has omitted the terms "diversity," "DEI" and "D&I" from its annual report for the first time since 2019, reflecting a broader corporate trend amid the political climate under President Donald Trump's second term. Instead, Disney is using terms like "inclusion" and "belonging," as demonstrated by the introduction of "Global Belonging Week." This shift aligns with a report from Gravity Research indicating a 98% decrease in the use of "DEI" by companies in 2025.

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Attorneys at a recent American Bar Association event urged employers to maintain diversity, equity and inclusion initiatives despite the Trump administration's intent to target "unlawful DEI." "Unlawful DEI was unlawful in 2024, and it is still unlawful in 2025. It was never lawful to hire somebody on the basis of race under Title VII," says Tobias Spruill, director and head of North American employment law and employee benefits at LinkedIn.

Business leaders should stop talking about diversity, equity and inclusion, but still do the work to make sure they're hiring people with the right skills and talent to grow their companies, regardless of their background, says Quinn Slaughter, the owner of HR consulting business Total Solutions. "The reality is you're going to have diversity in your organization when you hire the right people and the best people to do the role. It's impossible not to. So we don't need to focus on the words and the actual acronym, but focus on doing the right things," Quinn says.

Generative AI presents both opportunities and challenges for businesses, with many struggling to realize its productivity potential. HR departments can play a crucial role in AI adoption by managing job redesign, training and organizational structure changes, writes Josh Bersin, CEO of The Josh Bersin Company. HR can lead AI transformation by understanding training needs, defining company culture, and designing future-ready organizations, ensuring AI benefits are accessible to all employees.

Is your company changing its DEI policy or staying the course? Send me an email and let me know.

As always, let me know if there's a subject area or topic you want to see covered more. 

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