The AI-Enabled Operating Model

Meeting Details

The July Chief Human Resources Officer Board meeting focused on how AI is reshaping the HR operating model and what distinguishes future-ready HR organizations. Katheryn Brekken, Senior Research Analyst at i4cp, presented new i4cp research showing that leading organizations are using AI to transform HR work, strengthen strategic capabilities, and integrate HR more closely with technology and digital functions. Members shared how their organizations are approaching AI adoption, workforce transformation, HR capability development, and evolving operating models while discussing the organizational changes required to prepare HR for the future.

Key Points

• Future-Ready HR: New i4cp research found that future-ready HR organizations are more AI-enabled, spend more time generating data-driven insights, and play a greater leadership role in enterprise AI transformation.
• Evolving HR Roles: Members discussed how AI is reshaping HR Business Partner, Center of Excellence, and Shared Services roles, allowing HR professionals to focus more on strategic and advisory work.
• AI Adoption Challenges: Organizations continue to balance AI implementation with governance, change management, workforce readiness, and varying levels of technology maturity.
• Technology Decisions: Members shared experiences wit Workday, Oracle, SAP, ServiceNow, Copilot, and custom AI solutions while debating whether to leverage vendor capabilities or build specialized AI tools.
• November Meeting Preview: Members received a preview of the November 3-4 in-person meeting at Toyota North America, where discussions on AI-enabled HR operating models and future-ready HR will continue.

Meeting Highlights

AI and the Future-Ready HR Function

Katheryn Brekken introduced i4cp's latest research examining how AI is transforming HR operating models. The research found that future-ready organizations are significantly more likely to leverage AI to generate insights, automate routine work, and position HR as a strategic leader in enterprise transformation. Members discussed the widening gap between organizations that are redesigning HR around AI and those still experimenting with isolated use cases, emphasizing that technology alone is not enough—leadership, capabilities, and operating models must evolve together.

Preparing HR for AI Transformation

Members shared the challenges of preparing HR organizations for AI adoption while continuing to manage day-to-day operational demands. Several described balancing executive expectations for productivity gains with the realities of change management, capability building, and workforce readiness. Organizations are investing in AI training, tool adoption, and AI readiness assessments while encouraging experimentation to build confidence and practical experience across HR teams. The discussion reinforced that successful AI transformation depends as much on people and organizational change as it does on technology.

Rethinking the HR Operating Model

The conversation explored how AI is reshaping traditional HR roles. Katheryn presented an emerging operating model in which HR Business Partners become more strategic advisors focused on diagnostics, workforce planning, and transformation; Centers of Excellence evolve into architects of platforms and capabilities; and Shared Services increasingly serve as Workforce Intelligence Centers supported by AI. Members agreed that flexibility and cross-functional collaboration will be essential to avoid fragmented service delivery while creating greater strategic capacity within HR.

The Three Evolving Roles

1. Shared Services → Workforce Intelligence Center

• Counterintuitively, future-ready organizations are increasing shared-services staff, retraining them to train AI, manage knowledge, tag metadata, and drive adoption) — a more technical role and a hub for employee-listening signals.
• One member shared some eye-opening discovery data: ~7,000 formal HR Connect inquiries annually versus ~80,000 informal inquiries hitting HR teams — evidence self-service isn't working.

2. COEs → Platform & Capability Architects

• AI now lets HR centralize and personalize simultaneously — scale plus individualization. Members report change-management resistance within HR itself as the main barrier.

3. HRBPs → People & Business Strategy Liaisons (biggest opportunity)

• 84% of the least future-ready organizations report no meaningful change in HRBP focus. The future role points toward org design, strategic workforce planning, change management, and a new "diagnostic" capability (connecting dots across the business).

AI Technology and Implementation Strategies

Members exchanged experiences with enterprise HR technology platforms, including Workday, Oracle, SAP, ServiceNow, and Microsoft Copilot. Some organizations are relying on AI capabilities built into existing HCM platforms, while others are developing custom AI solutions to accelerate innovation. The discussion highlighted differing levels of vendor maturity, governance requirements, and organizational risk tolerance, with members agreeing that AI implementation strategies must align with each organization's technology landscape and business priorities.

Looking Ahead

The meeting concluded with a preview of upcoming board activities, including the November 3-4 in-person meeting hosted by Toyota North America in Plano, Texas. Members were invited to contribute case studies on AI-enabled HR transformation and to continue collaborating on i4cp's research into the future-ready HR operating model and the evolving role of the CHRO.

What's Next

• Attend the September 24 virtual CHRO Board meeting focused on Succession Management.
• Plan to participate in the November 3-4 in-person CHRO Board meeting at Toyota North America Headquarters in Plano, Texas.
• Members interested in sharing AI transformation case studies or contributing to i4cp's future-ready HR research are encouraged to connect with Mollie.Lombardi@i4cp.com

Links

• AI Enabled Operating Model Report