s·Fortune CHROHR leaders say AI ROI is a red herring.
Here’s what firms should focus on insteadBy Kristin StollerBy Kristin StollerEditorial Director, Fortune MediaKristin StollerEditorial Director, Fortune MediaKristin Stoller is an editorial director at Fortune focused on expanding Fortune's C-suite communities.SEE FULL BIO Some HR leaders believe that executives shouldn't be asking for an "ROI" on AI initiatives.Getty ImagesGood morning!
A few weeks ago, on a call with Fortune 500 CHROs across a multitude of industries, one tentatively brought up an issue she’d been having with her leadership team: They had asked her to ve the ROI, a figure showing monetary return on investment, of her investments in AI.
She was perplexed. It turns out, she wasn’t the only one.
A recent MIT report showed that, despite the billions spent on AI initiatives, 95% of companies are seeing no measurable impact on their bottom lines.
But Ruchi Kulhari, chief human resources officer of IT solution company Unisys, spoke up to say that ROI is the wrong question, at least at this stage.
“If we truly believe AI to be an enabler, It’s going to reflect its positives in everything we do in a strategic, smart way,” she said.
“If we are looking for that one silver bullet output,” she added, “we’re kidding ourselves.” If AI initiatives genuinely work, she said, the results will eventually show up in retention rates, the new skillsets employees build, and—in time—the revenue a company generates.
The question leaders should be asking instead is whether they are willing and ready to challenge the quo—and empower their employees to do it, said Teuila Hanson, LinkedIn’s chief people officer.
“You can’t just sprinkle AI on top of existing structures and expect your metrics or some wild metric to skyrocket,” Hanson said.
“As an organization, you need to really reimagine how work is going to get done and how ideas are generated.” Speaking of AI, our Fortune Brainstorm summit kicks off today in Park City, Utah, where I’ll be moderating along with my talented colleagues.
along via our here. And before you go: Be sure to check out our new podcast, Titans and Disrupters of Industry.
Fortune Editor-in-Chief Alyson Shontell will go in depth with the powerful thought leaders shaping both the world of and the very way we .
The first episode features an exclusive interview with Accenture’s Julie Sweet, who discusses the company’s strategic shifts and the impact of AI, tariffs, and geopolitical changes on es.
Kristin StollerEditorial Director, Fortune Mediakristin.stoller@fortune.comAround the TableA round-up of the most important HR headlines.Operating forklifts and pouring concrete have replaced swimming and kayaking at these new summer camps, where kids learn trade skills to set them on a stable career path.
BloombergAmazon CEO Andy Jassy is reshaping the culture at the giant, from monitoring employee phone use to creating a "bureaucracy mailbox." InsiderIn today’s uncertain job market, workers are “job hugging” or clinging to their current roles—causing headaches for bosses and the economy.
Wall Street JournalWatercoolerEverything you need to know from Fortune.Quarter-life crisis. Young workers are experiencing much higher levels of “despair” than those in midlife or older.
—Nick LichtenbergReturn of the office. Manhattan office leases are on track to return to pre-pandemic levels thanks to RTO mandates. —Jessica CoacciMaster’s movement.
Graduates with little or no work experience are flocking to this unique degree to stand out in the current job market.
—Emma BurleighThis is the web version of Fortune CHRO, a focusing on helping HR executives navigate the needs of the workplace. to get it dered free to your inbox.