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Companies are dealing with two talent problems at once. Skilled people keep leaving, and there aren’t enough workers who can use AI with confidence. CHROs have to tackle both. While firms fight over experienced hires, AI keeps changing roles, skill needs and career paths. HR leaders need clear plans that help people grow, build trust and get teams ready for what’s coming.
Keeping people is still a headache for HR teams. SHRM’s 2026 research found that 42% of HR professionals struggle to retain full-time employees. Pay is only part of it. People also want career growth, fair treatment, good managers, flexible work and a visible path to a better role.
More companies are looking inward before they hire from outside. SHRM found that 41% of HR professionals train current employees for roles that are hard to fill. Job rotation works well too, with 93% of companies that use it calling it effective, yet fewer than a quarter actually run such programs. Firms say they value internal talent, but many haven’t built the paths that let people move.
AI has raised the demand for new skills in almost every business function. ManpowerGroup’s 2026 research found that 72% of employers worldwide struggle to fill roles, and AI skills are among the hardest to find. It isn’t only a software problem. Finance, sales, customer service, marketing and HR all need people who can use AI tools and judge the results.
The Conference Board found that 82% of CHROs have changed their workforce plans because of AI, but only 19% have built its expected effects into company-wide workforce and financial plans. Many HR leaders see the change coming, yet haven’t connected it to staffing needs and budgets.
People with AI skills get offers from rivals all the time. PwC’s September 2026 research found that 29% of employees with scarce AI skills feel very or extremely likely to switch employers within a year. So keeping them matters as much as hiring them.
Better pay helps, but so do clear career paths, access to advanced courses and real roles on AI projects. These employees also want a say in decisions that affect their work. A job that offers growth and purpose gives talented people a real reason to stay.
IBM’s September 2026 study of 1,500 CHROs and 8,800 employees makes the case for human judgment. Some 71% of CHROs see AI oversight, checking outputs and rejecting poor AI advice as essential skills. Meanwhile, 60% of employees worry AI may weaken their own skills, and 46% of CHROs share that worry.
The study also found that 43% of employees feel blamed when AI makes a mistake. But 76% feel safe questioning or rejecting AI advice when HR shares responsibility for human-led decisions, and that drops to 43% when HR only advises. Clear rules and trust matter as much as the tools themselves.
Courses alone won’t close the gap. The Conference Board found that only 33% of regular AI users had received employer-led AI training in the previous six months. Workday’s October 2026 research found that 79% of workers know which skills they need, but just 66% say their employer helps them build them.
LinkedIn reports that job posts mentioning AI literacy rose by about 65% in a year, and members who list those skills are 78% more likely to get hired. That makes AI knowledge a career advantage, not just a technical extra.
CHROs should tie retention to skill development. Start by reviewing critical roles, current skills and where people are most likely to leave. Then offer role-based AI training, internal job paths and support for managers. HR, IT and business leaders also need to agree on rules for AI use and human oversight.
It’s about more than new tools. People need fair career paths, skills that are useful and trust in the company’s decisions. Firms that get these basics right can hold on to scarce talent and help staff adapt as AI reshapes work. The best HR strategy gives people a reason to stay and the skills to succeed in roles that may look quite different from today’s.
1. Why is talent retention a major concern for CHROs?
Talent loss raises recruitment costs, affects productivity, and creates skill gaps. CHROs must improve career growth, employee trust, compensation, and workplace support.
2. How does AI create new challenges for HR leaders?
AI increases demand for technical skills, changes job roles, and creates a need for employee training, human oversight, and clear workplace policies.
3. How can companies close AI skills gaps?
Companies can offer AI literacy courses, role-based training, technical certifications, internal career programs, and practical learning opportunities.
4. Why do AI-skilled employees pose a retention challenge?
Employees with scarce AI skills attract strong demand from rival employers. Competitive pay, career opportunities, and meaningful projects can encourage them to stay.
5. What role should CHROs play in AI-driven workforce planning?
CHROs should identify future skill needs, guide employee development, support job redesign, and work with IT and business leaders on AI strategy.