The launch of the UK Government’s AI Skills Compact reflects an important shift in how policymakers and businesses are thinking about artificial intelligence. Rather than viewing AI simply as a route to greater efficiency or reduced headcount, leaders are starting to recognise that long-term competitiveness will depend just as much on equipping people with the skills to work alongside AI as investing in the technology itself.
This distinction matters. Many of the organisations that are accelerating their adoption of agentic AI (that is, intelligent systems capable of coordinating increasingly complex workflows with minimal human intervention) are understandably focused on productivity gains. However recent reports reveal that numerous companies who had fallen into the trap of laying off employees due to AI, have been forced to re-hire that workforce. Our latest research at Top Employers Institute suggests that organisations achieving the strongest returns are taking a different approach. They are investing as heavily in employee capability, workforce redesign and organisational readiness as they are in AI itself.
The next phase of AI adoption presents an opportunity to change the assumptions which led to the layoffs and re-hiring because of short-sighted AI strategy, but only if organisations recognise that successful AI transformation is fundamentally a people transformation.
Why people are the real drivers of AI return on investment
One of the biggest misconceptions surrounding agentic AI is that better technology automatically produces better business outcomes. In fact, Gartner research suggests fewer than 40% of organisations who were early adopters of AI have realised significant productivity gains from AI implementation. Programmes underperformed because organisations layered new tools onto existing ways of working without redesigning how work itself was organised, and employees began resisting AI initiatives. These factors reduce the potential benefit from the company’s technological investment.
Successful organisations recognise that resistance to AI is rarely about the technology itself, it more often reflects uncertainty around changing roles, expectations and career opportunities. Addressing those concerns early enables organisations to realise the benefits of AI more quickly while maintaining employee engagement throughout the transition by bringing them on board with their desired outcomes.
Our research demonstrates that the organisations making the greatest progress are those that actively build trust and clarity around AI adoption. They involve employees in conversations about how AI will change their work, continuously evaluate the impact of AI on both organisational performance and employee experience and create environments where people understand not only how to use AI, but why it is being introduced in the first place.
In this scenario, HR, becomes a strategic enabler of AI adoption rather than simply supporting implementation after deployment.
Democratising AI creates stronger organisational capabilities
Another defining characteristic of organisations seeing stronger returns from agentic AI is that they are democratising access to the technology across their operations, by allowing all employees to use and experiment with AI tools, to independently discover methods to support their work.
Vodacom Group exemplifies this approach. Rather than limiting AI expertise to technology teams, the organisation is investing in training employees across functions to build and deploy AI solutions using low-code and no-code platforms. Clear governance frameworks allow employees to innovate within defined boundaries while maintaining appropriate oversight and accountability.
The results extend well beyond operational efficiency. Vodacom’s internal community of employees trained to develop automation and AI solutions has delivered hundreds of new processes while generating measurable financial benefits. More importantly, the organisation is creating a culture where AI capability becomes a shared organisational asset rather than a scarce technical resource.
This represents an important shift in thinking. Competitive advantage will increasingly come not from having access to AI tools, which are becoming widely available, but from having a workforce capable of applying them effectively to solve business problems.
That makes investment in learning, experimentation and workforce capability as important as investment in the technology itself. As AI continues to evolve, organisations that empower employees to develop these capabilities will be far better positioned to adapt than those relying on a small group of specialists.
Freeing managers up to focus on people
Perhaps the greatest opportunity presented by agentic AI is allowing managers to become better leaders. Too much management time continues to be consumed by repetitive administrative tasks, reporting and operational coordination. Agentic AI has the potential to absorb much of this work, creating more space for the activities where human judgement adds the greatest value such as coaching employees, developing talent, supporting career progression and strengthening culture. This further helps address employee engagement slump, whereby culture is emerging as an important indicator of profitability that helps to reduce talent loss and improve retention.
Top Employer Yum China has embedded AI across recruitment, training and operational support, allowing intelligent systems to handle high-volume administrative activities while managers focus more of their time on coaching teams and improving the employee experience. Employee involvement has been a central feature of this approach, supported by significant investment in workforce-led innovation alongside AI deployment.
This highlights an important point – the greatest value from AI may come from removing work that prevents people from contributing where they create the most value, rather than removing people from work altogether.
Why HR will determine the successful ROI from AI
As AI increasingly handles execution, employees become more responsible for providing judgement, resolving exceptions, building relationships and ensuring intelligent systems continue to operate in ways that align with organisational goals. Agentic AI, therefore, has the potential to make effective leadership even more valuable.
AI cannot be treated as purely a way to cut costs and headcount. Businesses that achieve the greatest returns from agentic AI will be those that invest with equal ambition in their people, equipping employees with the skills, confidence and support to work effectively alongside AI. In the years ahead, that balance between technological capability and human capability is likely to become the defining factor separating organisations that simply adopt AI from those that truly benefit from it.
Adrian Seligman is Chief Executive Officer of Top Employers Institute, a global organisation that certifies and benchmarks people practices. He leads the organisation’s work with nearly 2,500 certified organisations across 131 countries and regions. With more than 25 years of international HR leadership experience, Adrian regularly speaks with business and HR leaders around the world on topics including leadership, employee engagement, organisational transformation and AI. Drawing on insights from organisations across multiple industries and markets, he writes and speaks about the workforce trends shaping the future of work.
August 18, 2026
Why the organisations seeing real returns from agentic AI are empowering employees, not cutting jobs
by Adrian Seligman • AI, Comment
This distinction matters. Many of the organisations that are accelerating their adoption of agentic AI (that is, intelligent systems capable of coordinating increasingly complex workflows with minimal human intervention) are understandably focused on productivity gains. However recent reports reveal that numerous companies who had fallen into the trap of laying off employees due to AI, have been forced to re-hire that workforce. Our latest research at Top Employers Institute suggests that organisations achieving the strongest returns are taking a different approach. They are investing as heavily in employee capability, workforce redesign and organisational readiness as they are in AI itself.
The next phase of AI adoption presents an opportunity to change the assumptions which led to the layoffs and re-hiring because of short-sighted AI strategy, but only if organisations recognise that successful AI transformation is fundamentally a people transformation.
Why people are the real drivers of AI return on investment
One of the biggest misconceptions surrounding agentic AI is that better technology automatically produces better business outcomes. In fact, Gartner research suggests fewer than 40% of organisations who were early adopters of AI have realised significant productivity gains from AI implementation. Programmes underperformed because organisations layered new tools onto existing ways of working without redesigning how work itself was organised, and employees began resisting AI initiatives. These factors reduce the potential benefit from the company’s technological investment.
Successful organisations recognise that resistance to AI is rarely about the technology itself, it more often reflects uncertainty around changing roles, expectations and career opportunities. Addressing those concerns early enables organisations to realise the benefits of AI more quickly while maintaining employee engagement throughout the transition by bringing them on board with their desired outcomes.
Our research demonstrates that the organisations making the greatest progress are those that actively build trust and clarity around AI adoption. They involve employees in conversations about how AI will change their work, continuously evaluate the impact of AI on both organisational performance and employee experience and create environments where people understand not only how to use AI, but why it is being introduced in the first place.
In this scenario, HR, becomes a strategic enabler of AI adoption rather than simply supporting implementation after deployment.
Democratising AI creates stronger organisational capabilities
Another defining characteristic of organisations seeing stronger returns from agentic AI is that they are democratising access to the technology across their operations, by allowing all employees to use and experiment with AI tools, to independently discover methods to support their work.
Vodacom Group exemplifies this approach. Rather than limiting AI expertise to technology teams, the organisation is investing in training employees across functions to build and deploy AI solutions using low-code and no-code platforms. Clear governance frameworks allow employees to innovate within defined boundaries while maintaining appropriate oversight and accountability.
The results extend well beyond operational efficiency. Vodacom’s internal community of employees trained to develop automation and AI solutions has delivered hundreds of new processes while generating measurable financial benefits. More importantly, the organisation is creating a culture where AI capability becomes a shared organisational asset rather than a scarce technical resource.
This represents an important shift in thinking. Competitive advantage will increasingly come not from having access to AI tools, which are becoming widely available, but from having a workforce capable of applying them effectively to solve business problems.
That makes investment in learning, experimentation and workforce capability as important as investment in the technology itself. As AI continues to evolve, organisations that empower employees to develop these capabilities will be far better positioned to adapt than those relying on a small group of specialists.
Freeing managers up to focus on people
Perhaps the greatest opportunity presented by agentic AI is allowing managers to become better leaders. Too much management time continues to be consumed by repetitive administrative tasks, reporting and operational coordination. Agentic AI has the potential to absorb much of this work, creating more space for the activities where human judgement adds the greatest value such as coaching employees, developing talent, supporting career progression and strengthening culture. This further helps address employee engagement slump, whereby culture is emerging as an important indicator of profitability that helps to reduce talent loss and improve retention.
Top Employer Yum China has embedded AI across recruitment, training and operational support, allowing intelligent systems to handle high-volume administrative activities while managers focus more of their time on coaching teams and improving the employee experience. Employee involvement has been a central feature of this approach, supported by significant investment in workforce-led innovation alongside AI deployment.
This highlights an important point – the greatest value from AI may come from removing work that prevents people from contributing where they create the most value, rather than removing people from work altogether.
Why HR will determine the successful ROI from AI
As AI increasingly handles execution, employees become more responsible for providing judgement, resolving exceptions, building relationships and ensuring intelligent systems continue to operate in ways that align with organisational goals. Agentic AI, therefore, has the potential to make effective leadership even more valuable.
AI cannot be treated as purely a way to cut costs and headcount. Businesses that achieve the greatest returns from agentic AI will be those that invest with equal ambition in their people, equipping employees with the skills, confidence and support to work effectively alongside AI. In the years ahead, that balance between technological capability and human capability is likely to become the defining factor separating organisations that simply adopt AI from those that truly benefit from it.
Adrian Seligman is Chief Executive Officer of Top Employers Institute, a global organisation that certifies and benchmarks people practices. He leads the organisation’s work with nearly 2,500 certified organisations across 131 countries and regions. With more than 25 years of international HR leadership experience, Adrian regularly speaks with business and HR leaders around the world on topics including leadership, employee engagement, organisational transformation and AI. Drawing on insights from organisations across multiple industries and markets, he writes and speaks about the workforce trends shaping the future of work.