Prompt engineering, employee AI avatars, and digital employee experiences, the future of work is … certainly digital.

To see what else we’ve been missing, Gartner’s latest "Hype Cycle for the Future of Work, 2024" outlined some of the most impactful trends driving workplace transformation. 

What stood out to me is that by 2028, companies with dedicated Digital Employee Experience leaders are projected to adopt emerging technologies at twice the pace of their peers. 

At the same time, AI-driven innovations such as AI avatars, no-code platforms, and workstyle analytics are reshaping not only where but also how and by whom work gets done. 

Gartner’s message is clear: Embracing these technologies will enhance productivity and retain top talent, while those who don’t risk falling behind.

But while this sounds like a People job, the word HR only appears ONCE in the 73 slides Gartner presented. What! 

Why?

Let’s dive in.

Key Trends Driving Workforce Transformation

As we’ve discussed aplenty, AI and automation are transforming industries worldwide. But while people and technology should be a key HR matter, as Roblox CHRO Arvind KC told me recently, AI is a CIO matter according to this research.

Gartner’s research highlights that 50% of CEOs now depend on their technology leaders to drive innovation, streamline work processes, and unlock AI's value. 

Whether that’s a formula for success remains to be seen, as only 14% of organizations have achieved the digital maturity necessary to empower their workers through these advanced tools.

By 2027, 70% of Fortune 500 companies will have implemented Augmented Connected Workforce (ACW) initiatives, using real-time data, AI avatars, and intelligent tools to boost productivity. 

As I’ve said many times, AI is the most human technology ever invented. This means it’s no long (just) a job for IT, and creates a huge opportunity for HR to step up and lead the digital transformation.

HR can especially play a role in integrating AI and everyday digital tools into employees' workflows. Both the Roblox AI and PwC Netherlands’ case studies show this, and in both cases, highly senior HR leaders are involved in AI implementation.

This is above and beyond upgrading our own HR practices including AI Recruiting Software, AI in HRIS, and AI in  employee management software.

Employee AI Avatars 

These systems provide employees with personalized knowledge and adaptive workflows, ensuring that workforces are more efficient and engaged.

One critical development is the increasing use of AI avatars – which I thought was interesting given the success of tools like Character AI. 

By 2028, 45% of companies with over 500 employees will rely on AI avatars to expand human capital. This will allow employees to focus on more strategic, high-level tasks while their AI counterparts handle repetitive processes. 

For HR, this means creating new strategies to leverage AI to handle routine tasks, freeing employees to focus on high-level, strategic work.

HR’s Role in Leading AI Integration and Digital Maturity

Gartner’s findings show that the rise of everyday AI in the workplace is empowering employees to optimize their workflows. 

With 49% of digital workers already using AI-driven tools, this echoes the research from Microsoft and Asana we discussed before. 

(Interestingly, most of these tools are personally obtained as we saw in Microsoft’s “BYOAI” study, signaling a need for organizations to integrate AI into their core operations better as part of their AI change management strategies.)

Gartner's research highlights that 60% of workers who achieve higher productivity build or customize their own technology experience, often using no-code platforms to streamline workflows​. 

HR can model this behavior by introducing no-code tools to automate repetitive tasks such as employee onboarding, performance reviews, or leave management. This enhances operational efficiency and fosters a culture where employees feel empowered to innovate with technology.

Moreover, as AI continues to evolve, HR must also leverage workstyle analytics to drive data-driven insights. According to Gartner, these tools help "synthesize IT, HR, and business data about how employees work" to optimize the relationship between technology investments and business outcomes​. 

By using AI to analyze workforce patterns and productivity metrics, HR can identify opportunities for improvement and make more informed decisions about talent management, engagement, and training initiatives.

Embracing AI and Creating a Digitally Mature Workforce

Embracing these emerging trends is imperative. 

The future of work depends on how well your organization leverages AI and digital tools to enhance workforce capabilities. 

To thrive in an AI-driven future, HR must prioritize digital dexterity across the workforce. 

Digital dexterity—the ambition and ability to use technology to improve outcomes—will be a key factor in success, but many organizations are lagging. 

Gartner's findings show that employees with higher digital dexterity are significantly more productive, yet many workers still need help to adopt new tools. 

If we, as HR leaders, don’t focus on training and upskilling programs that help employees embrace AI and digital tools, ensuring they have the confidence to integrate these technologies into their day-to-day tasks, then who will?

Practical steps for HR include:

• Building a strong DEX strategy to ensure seamless integration of digital tools across the organization.
• Investing in AI tools that enhance employee workflows
• Fostering a culture of continuous learning where experimentation with new technologies is encouraged. 

Leaders should also consider establishing roles specifically focused on managing AI and digital transformation initiatives, which would further accelerate their organization’s digital maturity.

The Bottom Line: HR and the Future of Work

Gartner highlights that organizations needing more digital dexterity will need help maintaining their competitive edge in an increasingly automated world.

To overcome barriers, Gartner advises focusing on three areas:

1. Building a DEX Strategy: As digital tools become more integrated into work, ensuring employees have a seamless experience with these tools is crucial for maintaining productivity and reducing turnover.
2. Investing in AI: Starting with everyday AI tools (see our top AI Websites, AI Marketing Tools, and AI Accounting tools), organizations need to adopt secure, scalable solutions to empower their workforce.
3. Accelerating Digital Maturity: Leaders should prioritize developing digital dexterity across their organizations by providing training, fostering innovation, and creating roles dedicated to managing AI and digital initiatives. (Take a look at these best generative AI courses.)

As the report shows, the future of work is already here, shaped by AI and digital tools transforming industries at unprecedented speeds.  

But it’s not just about overcoming barriers – it’s about embracing new opportunities, as Future of Work thought leader Phil Kirschner shared for this newsletter:

“HR has the potential to play a transformative role not only in how work gets done but in shaping the very structure of the organization itself. Gartner's Hype Cycles have long covered HR Tech, but the 'Future of Work' report signals a new horizon. HR should retool the organization to harness emerging innovations like talent marketplaces and nudge technology—tools that will allow us to reimagine how teams are structured and operate." – Phil Kirschner, Founder and Principal Consultant, PK Consulting

The best time for HR to seize this challenge was quite a while ago, but the second-best time to act is now. 

Organizations that invest in these technologies and build a future-proof workforce will lead the charge in the next phase of work. 

Those who hesitate risk being left behind.

I know which camp you’ll be in.

Until next week,

– Daan