Leading ‘People Centric’ change in an AI accelerated world | HR Trends 2026

As 2026 begins, the Academy to Innovate HR (AHRI)has highlighted the 11 expected HR trends shaping the year ahead, with a clear theme - AI and technology continuing as central to both HR and organisations. With over half of the listed trends focussed on AI or technological impacts, it is evident organisations are entering a phase of rapid technological acceleration.   

While this pace can bring about significant opportunities for organisations, it also brings uncertainty, potential skill gaps, and increasing pressure to adapt quickly and lead with resilience. For HR professionals and leaders, this presents both challenges and pivotal opportunities to reimagine how systems and processes operate, how work is designed, and how people are supported through change.  

AHRI’s top 11 HR trends to shape 2026: 

1. AI Leadership Coalition - the idea that AI no longer sits solely in the IT department; it functions across departments and leadership.  

2. Human centred governance guides AI deployment  

3. Businesses are predicted to continue to invest in “AI Centres of Excellence” to drive capability and consistency 

4. AI capacity is reshaping work, not just how fast work is completed, but what work people do.  

5. The rise of ‘Technostress’ and ‘FOBO’ (fear of being obsolete) 

6. Cross-functional structures are replacing traditional silos 

7. Increased HR spending on AI tools and platforms 

8. AI fluency is becoming a baseline HR competency  

9. AI is expected to take on more transactional work allowing employees to provide value through Human Capabilities 

10. Workforce planning is shifting, driven by skills rather than traditional roles 

11. Leadership is expanding as management shrinks 

Overall, these trends indicate a fundamental shift, with technology transforming what and how we work.  

Impacts and Challenges

Technostress and FOBO (fear of being obsolete) 

One of the most significant human impacts of rapid technological change is the rise of anxiety, fatigue and overwhelm employees experience when adapting to new systems. An impact that has been present throughout each of technological revolutions, and it’s evident again in the Age of AI similarly giving rise to ‘technostress’, the term coined to acknowledge the stress employees feel when new technologies alter the way we work and perceived job security. Alongside this is FOBO: The fear that one’s skill, role or career may become irrelevant or obsolete. 

Without thoughtful intervention, these pressures can lead to disengagement, resistance to change, and reduced wellbeing. Leading to decline in psychological safety, increased burnout and “job hugging”. Leaders must recognise that AI and digital transformation can have as much of an impact on individual’s emotional and psychological wellbeing as it can on their technical ability.  

Skill Gaps and Leadership Pressure 

As AI changes the nature of work, many organisations face widening skill gaps, particularly in data literacy, critical thinking, adaptability and ethical decision-making as technology alters the parameters. This can be exacerbated by the speed in which AI is accelerating beyond individual’s ability to learn the new skills required. Leaders are also under pressure to guide teams through ambiguity, often without clear precedents or frameworks.  

The Opportunities

Despite these challenges, 2026 presents powerful opportunities for leaders to lead meaningful, people-centred transformation. 

Embedding Human-Centred Governance 

AI governance is no longer just about compliance and risk. Leaders have a critical role in ensuring systems are designed and deployed with fairness, transparency, inclusion, and employee wellbeing at the core. Embedding Human-centered governance further supports a culture where Human value remains the core of systems and process design. This can help in easing technostress and FOBO by communicating to employees that AI and technology is not there to replace humans.  

Building AI Capacity Through Collective Growth 

AI capacity is not about replacing people it’s about augmenting human capability. When organisations invest in shared learning, experimentation, and cross-functional collaboration, AI becomes a tool for collective growth rather than individual competition. If combined with a culture that allows for people to feel psychologically safe to learn from mistakes this can both further support cultural growth and resilience within the organisation.  

Moving Beyond HR Silos 

The shift toward cross-functional structures allows HR to work more closely with technology, finance, operations, and other departments. This integration strengthens workforce planning, accelerates innovation, and ensures people considerations are embedded in business decisions from every perspective with consideration of impacts for people across the organisation.  

Practical Steps to Maximise Benefits and Minimise Challenges

To navigate 2026 effectively, leaders can take several practical steps: 

1. Invest in AI fluency, not just tools 
   Focus on building confidence and understanding across HR, leadership teams and employees, not just technical capability. Fostering understanding can help to mitigate anxieties resulting from the unknown.  

2. Redesign work, not just roles 
   Shift workforce planning toward skills, capabilities, and outcomes rather than static job descriptions. 

3. Address technostress proactively 
   Normalise conversations about change fatigue, provide learning time, and offer psychological safety during transitions and provide support systems/process that are accessible to employees.  

4. Create inclusive learning pathways 
   Ensure upskilling opportunities are accessible to all employees, reducing FOBO and reinforcing internal mobility. 

5. Strengthen human capabilities 
   Prioritise skills that AI cannot replicate empathy, judgment, ethical reasoning, creativity, and relationship-building. Build these capabilities into part of the human governance process and work redesigns.  

6. Use data to support strategic change 
   Use data, insights, and cross-functional collaboration to influence organisational direction and long-term resilience. Communicate the data to employees so they can be involved an understand how the technology is impacting them and the work they undertake.  
   

 Looking ahead in 2026

2026 is not just about adopting AI, it’s about how organisations choose to lead through change with intention.  

By leaning into human-centred governance, collective capability building, and adaptive leadership, leaders can transform uncertainty into opportunity and help shape a future of work that is resilient, inclusive, and purpose-driven.