Human Capital Trends Report 2026

The boundaries between humans and machines are blurring. Nearly 60% of workers now use AI intentionally at work. Yet only 14% of leaders say they are adept at shaping human-AI interactions. Organisations must get the human and machine relationships right. This is the foundation of our 2026 Human Capital Trends: define who does what, where humans judgment or empathy adds value , where machines add speed and scale, and how work is redesigned, not just automated.

This includes a fundamental rethinking of culture, decision rights, and trust in data itself. The questions are fundamental: How do we maximise the value of humans and machines working together? How does culture evolve when people and intelligent agents work side by side? Who has the authority to decide when algorithms act and when humans intervene? How can organisations protect themselves against misinformation and untrustworthy outputs?

The data shows that organisations that prioritise intentional work design and human-machine collaboration are twice as likely to exceed their AI ROI expectations. Organisations leading the way on intentional design of human-AI interaction are nearly 2.5x more likely to report better financial results and twice as likely to provide meaningful work. Effective human and machine interaction isn’t intuitive; it is critical to design both the formal hard-wiring such as roles, decision rights and escalation protocols as well as  the informal soft-wiring such as leadership, culture and teaming. Organisations with a clear view of this scaffolding will better shape how humans and AI collaborate. 

Relentless cost pressures have pushed organisations toward efficiency at all costs, but this approach has drawbacks when capacity is constrained. The focus must shift toward value creation, innovation, and strategic investment in people.

This creates a clear issue: organisations cannot simply automate their way to competitive advantage. They must invest where humans create irreplaceable value. Organisations that succeed will not be those that automate fastest, but those that channel efficiency into reinvestment, fuelling new forms of value creation and worker performance.

This means evolving functions to be fit-for-purpose, investing in innovation, and prioritising growth through adaptability rather than simply reducing expense.

Strategy and execution are merging. The future is both here and unknown, making curiosity a core organisational capability. Organisations must move beyond structured jobs to dynamically orchestrate capacity and capabilities to meet shifting demands. This requires systems for perpetual learning, experimentation, and reinvention.

Purpose, values, and culture must evolve from static statements into living, adaptive elements. Currently, only 27% of organisations manage change effectively, and only 8% meet continuous learning needs. Organisations that successfully cultivate adaptive approaches are 2x more likely to report better financial results and provide meaningful work.

Adaptability is the new change advantage: Most leaders (85%) say it’s critical to build the organisations and workforce’s ability to adapt at the speed required today, yet only 7% say they’re leading in helping their workforce continuously grow and adapt.