CEOs and CHROs are hyper-focused on talent as businesses invest deeper in AI

As executives consider risks that could impact their businesses in the near future, CEOs and CHROs are aligned on a few things.

Both of these C-suite leaders ranked “talent and labor availability” and “skills and talent acquisition and retention, leadership development and succession challenges” as the top two near-term risks, according to a report recently published by the global business consulting firm Protiviti.

CEOs’ and CHROs’ top near-term risks differed somewhat from the overall survey results, which drew upon responses from 1,540 board members and C-suite executives, and was conducted with North Carolina State’s Poole College of Management.

Taken as a whole, “cyber threats” and “third-party risks” ranked first and second among respondents who were asked about the most pressing issues facing their businesses in the near-term.

Though CEOs’ and CHROs’ top areas of concern differed somewhat from their peers, all of these risks point to the different ways business leaders are responding to the emergence of AI.

Taking advantage of AI. Businesses have deepened their investments in AI significantly over the last few years, betting that the technology can drive innovation and cost savings in areas ranging from software engineering to IT to HR. Companies spent $37 billion in generative AI in 2025, more than triple the investments they made in 2024, according to a report from Menlo Ventures.

AI raises both security- and workforce-related risks for businesses, Protiviti noted in its report. Respondents expressed concerns about the data required for AI use and cybersecurity exposure when asked about the impact of AI on their businesses over the next two to three years, with 31% citing this as a significant priority.

A similar share of respondents cited integrating AI with the workforce, as well as equipping workers “to realize AI’s value proposition,” as significant priorities.

Companies may struggle to realize AI’s value in part because their HR teams don’t “actually understand how to take advantage” of the technology, said Kim Bozzella, global CIO solutions and technology consulting leader with Protiviti.

To address AI knowledge gaps within the HR function, companies need to first ask themselves why they’re using it, said Fran Maxwell, Protiviti’s global CHRO team and people and change leader. A company’s HR strategy may look very different if they’re looking to realize productivity gains from AI, for example, compared to a firm that is looking to improve the employee experience with AI.

Once a company answers this question, it can help inform how they should be “aligned or organized, and then what skills they then need thereafter to help support that organization,” Maxwell said.

He added that he doesn’t see a ton of organizations bringing in external talent to help their HR function with AI-related goals, “because, frankly, there’s not a lot of external talent that’s got experience doing this.” Companies should lean on strong L&D programs, if possible, to help HR figure out what skills they have, and what skills they’ll need to develop in the near future.

“A lot of the upskilling that needs to occur really needs to start in the HR function,” he said.