Times have never moved so rapidly. Corporate strategy today is being buffeted by geopolitical instability, economic constraints and accelerated technology disruption; and HR has no choice but to evolve.  

In May, our team partnered with People 1st | Dubai; together, senior HR leaders and transformation specialists explored how the people function can step up as a true strategic partner—capable of enabling business transformation. Following our involvement, we thought we’d share some of the key discussions at the event and the hot trending topics for CPO/CHROs in the room on the day.

This is part one of a two-part blog series. In part two we’ll focus on the discussions centred around the foundations of a leading-edge Payroll function, as well as the future. Look out for that next week.

HR under new pressures 

HR leaders recognise the critical inflection point where global business challenges, such as low-growth forecasts and post-COVID operational uncertainty, force organisations to ‘do more with less’ (something we’ve already outlined in our whitepaper The efficiency paradox). Balancing long-term talent and growth ambitions has become the defining paradox for modern HR and the pressure to deliver results with limited resources is immense.

HR must navigate this landscape with agility and foresight, the CPO working tirelessly with senior HR leadership teams to improve the perception of the HR function. In Q1 and Q2, we conducted research with an externally validated third-party provider, Alan Agency – part of the Raconteur group, and, in the data set of 450 C-Suite professionals from large multinational organisations (250 of those were CPOs), 85% of senior leaders surveyed believed that HR has strategic influence. While trust in HR’s strategic influence exists, it is yet to be fully unlocked.  

The need for strategic involvement 

Many HR functions are becoming more involved in transformation initiatives, but the timing and perception of HR’s contribution need improvement. As we announced at the conference in May, following research we conducted in Q1 and Q2 this year with 450 C-Suite professionals from large multinational organisations (250 of those were CPOs),  52% of CPOs are only being brought into the transformation conversation at the start of a transformation programme. That number needs to be higher. 

HR must demonstrate business acumen and bring forward insights that enable decision-making. This involves understanding the broader business context and aligning HR strategies with organisational goals. As one CHRO reflected from the audience, “You don’t just get a seat at the table because you’re C-Suite. You have to earn it.” The HR leader’s challenge, therefore, is to stay a step ahead of business needs: proactively identifying people trends and predicting capability gaps. Said one hospitality HR leader: “The credibility comes from making decisions that the business can’t make without you.” 

A new operating model 

What the conference did confirm to our team in Dubai was a need for agility, led by digital integration. Today’s HR functions must be dynamic, insight-led, and human-centred. Better use of data is crucial, as many HR decisions are still made on gut feel. Data-driven insights allow HR to shift from firefighting to foresight. By leveraging data analytics, HR can anticipate trends, identify potential issues, and make informed decisions that drive business success.

Said one contributor: “We must think about how technology complements the way that we deliver HR services and support our employees; and what that means for the types of roles that will be part of HR in the future. The only way to do that is to stay very connected, to always be listening, both to your leaders and to your employees, and to use data to make decisions.”  

But experience design isn’t just the remit of HR. It’s a whole-organisation responsibility, requiring HR to shape leadership behaviours and advocate for the employee voice.  

Organisational design is adapting to support new and seemingly endless demands. Some companies are introducing cross-functional talent pools to break down silos and allow greater flexibility. Others (especially those spanning continents and regulatory complexity) are building internal HR consulting teams (the mindset shift to think more like internal People consultants is something we’ve advocated at LACE as far back as 2019 with our HR on the Offensive whitepaper), drawing together senior leaders to co-create strategy across business units.  

AI: The great disruptor 

AI is driving organisational change in HR, but the journey is uneven and experimental. While tools like ChatGPT and Microsoft Copilot are being introduced, turning AI into meaningful change remains a work in progress. Organisations are investing in training and upskilling to ensure AI adoption. The potential of AI to automate routine tasks, enhance decision-making, and improve employee experiences is immense, but it requires careful implementation and continuous learning.

One HR business partner observed, “We’ve made Copilot mandatory—but that doesn’t mean it’s embedded. It’s still seen as optional” – and that’s just Copilot, which has appeared on all our desktops anyway. It’s a tool, not a strategy. Another leader noted that the challenge was cultural: shifting mindsets from “AI is interesting” to “AI is essential.” To accelerate that transition, a couple of our CHROs have embedded AI-focused KPIs. 

Others are further ahead. One contributor shared their structured approach to AI transformation: establishing an AI Council across the business, launching a secure internal AI hub, and recently also creating an HR-specific AI council with ambassadors across divisions. 

For more reading on a LACE perspective on the key considerations needed for a robust implementation to AI, check out our blog on our TRUSTED framework here. 

The role of HR in business transformation

HR professionals must set the right course by thinking of themselves and the experience they expect every morning. By keeping ego under control and focusing on empathy and communication, HR can create a positive impact and drive business transformation. This involves building strong relationships with business leaders, understanding their needs, and providing solutions that support organisational goals. HR must also foster a culture of continuous learning and innovation to stay ahead of the curve. 

Over the coming weeks and months, we’ll be expanding on our Proactive people transformation campaign, running events, featuring podcasts, releasing more blogs focused on the role HR and CPOs play in the People workstream of business transformation. This is a topic that we’re hearing more and more from our customers and friends of LACE.

If you’d like to find out more of that (which will also include a whitepaper expanding on the research we’ve conducted this year), you can visit our campaign webpage here.