Deloitte report highlights conflicting needs in human capital as AI reshapes work

Santo Domingo.- In an increasingly interconnected world, business leaders are navigating complex pressures at the intersection of corporate performance and human well-being. This challenge arises as artificial intelligence (AI) significantly alters the nature of work, automating tasks, potentially reducing entry-level positions, and accelerating the pace of change. These are some of the key findings from Deloitte’s newly released “Global Human Capital Trends 2025” report.

The report reveals that this evolving landscape creates competing demands for employees, managers, and organizations. These include the urgent need to bridge a widening experience gap as traditional entry-level jobs become less prevalent, the importance of supporting individual development amidst the transformation of middle management roles, and the necessity of ensuring that both workers and organizations can fully harness the potential of AI.

Deloitte’s research emphasizes how organizations can turn these tensions into opportunities by fundamentally rethinking talent development beyond conventional approaches, reimagining the responsibilities of managers, and strategically leveraging AI to generate value for both the company and its workforce. This is particularly critical given that only a tiny fraction, around six percent, of workers believe their organization is making significant strides in creating this shared value.

A central challenge identified in the report is the growing divide between the demand for experienced workers and the reality that many qualified candidates lack the necessary practical experience. Furthermore, the decline in traditional entry-level roles is hindering the ability of new entrants to gain foundational experience.

To overcome this hurdle, Deloitte suggests that organizations should shift their focus from rigid experience requirements to hiring based on demonstrable skills and future potential. Notably, the report highlights that a strong majority of executives (73%) and workers (72%) agree that organizations need to do more to connect their workforce with opportunities for experiential learning. Additionally, almost three-quarters (74%) of surveyed workers, managers, and executives consider it vital to prioritize the development of human capabilities.

Addressing the skills gap and the evolving role of management

The traditional role of middle managers is also poised for a significant transformation as organizations and employees adapt to rapid changes and the increasing integration of AI. While organizations benefit from having dedicated individuals focused on employee growth, many managers currently spend a disproportionate amount of their time on administrative tasks rather than on talent development. The report suggests that AI can assist managers in balancing their daily responsibilities, allowing them to dedicate more time to their people and become more agile leaders.

Organizations that successfully redefine the manager’s role will be better equipped to navigate an increasingly complex and AI-driven future. The data shows that managers currently spend nearly 40% of their time on problem-solving and administrative duties, with only 13% dedicated to the development of their team members. Moreover, over a third (36%) of managers report feeling inadequately prepared to lead people, and 40% have experienced a decline in their mental well-being after becoming managers.

As AI becomes more integrated into the daily workflows of employees, it is subtly and unexpectedly changing their overall work experience. The collaboration between humans and AI is increasingly becoming a vital component of the modern “employee value proposition” (EVP) – the reasons why individuals choose to work for and remain with a particular company. An updated EVP can enable organizations to better support their employees and adapt to these evolving dynamics.

Furthermore, leaders who clearly communicate the role of AI in transforming work, fostering career growth, and promoting work-life balance can foster greater trust within the workforce. The report indicates that over half (52%) of leaders believe that the potential value of deeper human-machine collaboration is highly significant. Furthermore, more than 70% of managers and workers are more likely to join and stay with an organization if their employee value proposition helps them thrive in an AI-powered world.

Karen Pastakia, Global Human Capital Leader at Deloitte Canada, emphasized this point, stating, “Focusing too heavily on short-term results can come at the expense of long-term value creation. Yes, organizations can leverage advancements in AI to drive value and improve outcomes. However, those that effectively utilize this technology to identify and address emerging challenges, create a better quality of life for workers, and reimagine rigid management structures have the potential to unlock greater value for all their stakeholders.”

The “Global Human Capital Trends 2025” report is based on a survey of nearly 10,000 business and HR leaders across various industries and sectors in 93 countries. In addition to the extensive global survey, Deloitte supplemented its research this year with targeted surveys of workers, managers, and executives to uncover potential gaps between leadership and management perceptions and the realities faced by workers. These survey data were further enriched by over 25 interviews with executives from leading organizations.

For more detailed information, the full report can be accessed on the Global Human Capital Trends 2025 webpage.