The soldiers on the frontline of digital transformation in today’s workplaces are, perhaps surprisingly, our talent managers and human resources professionals. Across sectors and in businesses ranging from corporates to large SMMEs, leaders who participated in Old Mutual Corporate’s recent survey on AI and its impact on the workplace made it clear: human capital and workplace management is the top concern keeping them up at night. In particular, they are finding it challenging to attract and retain staff, manage employees’ evolving expectations, manage different generations in the workplace, address skills gaps, and ensure wellbeing. 

Dalene Sechele, Executive: Corporate Engagement at Old Mutual, says this result is both expected and revealing. “In a world of accelerated change, talent management becomes the linchpin of organisational resilience and success,” she says. “I always say that strategy will not fly off the page and execute itself; it requires talented, energised, and engaged people.” 

Although AI and technological disruption in itself is one of the top five concerns for business leaders, it is also a contributing factor to their other worries. One important reason for this, also highlighted by global institutions such as the World Economic Forum (WEF) in the Future of Jobs Report 2025, is the skills challenge that accompanies rapid technological change. 

The skills challenge 

The skills challenge is not just around recruiting people with technical expertise. What is proving to be even more challenging is hiring for the skills that support those technical capabilities – the human skills that machines can’t replicate. 

These results echo global research showing that the rise of AI is increasing the need for human skills. For example, a 2023 study by the Organisation for Economic Cooperation and Development (OECD) on the impact of AI in the workplace, pointed to a need for a broad range of skills as AI becomes more pervasive within the economy. AI adoption does not require just AI expertise, but also skills in creative and social intelligence, reasoning skills and critical thinking. 

Similarly, the Future of Jobs Report highlights the importance of a combination of cognitive, self-efficacy, and interpersonal skills. In today’s world of work, it is critical to have an agile, innovative, and collaborative workforce, where problem-solving abilities and personal resilience are critical for success.

“Soft skills, like emotional intelligence, communication, and collaboration, are essential for managing change, leading diverse teams, and maintaining a human touch in increasingly automated environments,” says Sechele. 

“The data shows that communication, interpersonal skills, and professionalism are seen as gaps in younger generations. “However, this is not about generational blame; it is about evolving workplace norms. Younger employees are digital natives, often preferring asynchronous, informal communication. Bridging this gap requires mutual adaptation, not criticism. Organisations should foster intergenerational mentorship, where older employees share soft skills and institutional knowledge, while younger ones offer digital fluency and innovation,” says Sechele. 

How to answer the million-dollar question 

Globally, employers appear to be addressing AI-related skills challenges primarily through training. Training the existing workforce, upskilling internal talent, and buying services from external companies were the most popular strategies of global firms, according to the OECD. Hiring new workers was a less common strategy.

The WEF report reaffirms this, as reflected in the fact that despite current uncertainty around the long-term impact of generative AI, the expected pace of disruption of skills has begun to stabilise. Employers expect 39% of workers’ core skills to change by 2030. While this is still a high pace of change, it is down from 44% in 2023. According to the report, the growing focus on continuous learning, upskilling, and reskilling programmes contributes to this stabilisation, as it enables companies to better anticipate and manage future skills requirements. Locally, an interesting finding in Old Mutual’s survey points to an additional solution. One of the questions compared employers’ optimism about the future of AI in the workplace with that of employees.

The data shows that employees are more excited about AI, while employers exhibit ambivalence. Sechele says possible explanations for employers’ caution include concerns around data security, governance, and ethical use, as well as fear of job displacement, especially among older staff. Digital transformation can also be expensive, and leaders are concerned about choosing the right investments. Younger generations, on the other hand, such as Millennials and Gen Z, see AI as an enabler of efficiency, creativity, and autonomy. Another reason for the positivity among employees of all ages is that they see it as a “career accelerator”, freeing them from mundane tasks and allowing focus on strategic or meaningful work.

Four strategies

Sechele suggests four tangible strategies for South African businesses:

1. Leverage employee enthusiasm by creating innovation hubs, AI idea challenges, and bottom-up feedback loops

2. Focus on both technical upskilling of existing employees and change management to reduce fear and resistance

3. Develop clear AI policies and vetting tools that will ensure ethical use while empowering experimentation

4. Ensure that C-level leaders understand the impact of technology on the business and its people in order to harness its full potential.

But, perhaps more important, says Sechele, is not to have an answer, but to be the voice that raises awareness and asks the right questions. “Covid represented a pivot for HR professionals. It gave HR a seat at the table because the leadership turned to human resources professionals and asked them to guide the companies’ response. AI represents an opportunity for human resources to cement and secure their seat at the table,” she says.

In this new era, HR is no longer part of the supply line. It is in the room and on the frontline, informing the battle plan.

*This article originally appeared in the Old Mutual Mindspace Thought Leaders Forum special issue. To read more, click here.