Solving the human-machine equation Introduction: A year where onlyexponential performance In 2026, the velocity and volatility of change will likely not abate asorganizations continue to strive for growth amid uncertainty. But thatgrowth — value creation, agility and productivity — is increasinglyharder to come by: markets are mature, competition is global, Exponential performance isn’t just essential: it’s existential. The pressure to deliver exponential improvements in economic performance — throughgreater agility, productivity, efficiency and impact — is intensifying for leaders, HR professionalsand employees alike. Yet this year’s Global Talent Trends study reveals that alignment isbreaking down. Leaders are pushing harder for productivity and efficiency, while investorsfavor organizations with AI-enabled, digital-first cultures that are built to deliver sustained To unlock exponential performance and ensure sustainable growth, organizations must act now,intentionally redesigning work, processes and operating models to create the systems that willenable success for all stakeholders. Now is the time for bold bets. Organizations that transform Global Talent Trends is based on a survey of approximately 12,000 respondents (C-suiteexecutives, HR leaders, investors and employees). It uncovers four trends as critical levers for Recalibrate the valueexchange: Reinvent for a humanadvantage: Leap forward withinsight: Unleash a new HR era: HR must stop lookinginward and startdesigning outward. Itsentire future relevancedepends on its ability to AI alone is not enough:work must be redesignedaround human-centricprinciples, with cultures Talent foresight is thebest risk mitigationstrategy, enablingleaders to leverage To drive growth andcompete for talent, theemployer-employeerelationship must beredefined to ensure each Together, these trends outline a path from experimentation to intentional, scaled transformation— one that delivers exponential and sustainable improvements in performance, leverages AI as a Key insights for senior leaders 1.The C-suite and HR are misaligned on what drives performance While executives are focused on redesigning work around AI and strengthening people analyticscapabilities, HR leaders risk strategic misalignment, just when they need to reinvent. HR’s top priorities for 20261 C-suite’s top people initiativesfor driving ROI2 1.Redesigning work to incorporateAI and automation2.Improving HR/people analytics capability3.Improving managers’ abilities to 1.Enhancing the employee experience/EVPto attract top talent2.Designing talent processes 2.Intentional work redesign is the missing piece for sustainablehuman-machine performance C-suite leaders and investors see redesigning work to incorporate AI and automation asa major value driver, yet only a minority believe the workforce can combine human and 63% Only 32% of executives believe redesigning work toincorporate AI and automation is the people believe their workforce canoptimally combine human and 3.Talent scarcity risks constraining growth ambitions Skills shortages will make it harder for organizations to drive performance.In an AI-enabled world it is talent, not tech, that delivers a competitive edge. 59% 54% of HR leaders say difficulty attracting talentwith vital digital skills is the top workforcechallenge facing businesses of the C-suite say talent scarcity is the topmacro driver influencing people plans 4.Executives are planning near-term organizational design changes Almost all organizations will undergo significant design changes in the next two years,including AI-related headcount reduction. 99% 98% of executives expect AI to lead to at leastsome headcount reduction in the next of executives are planning organizationdesign changes in the next two years 5.Talent intelligence emerges as a key differentiator — Investors and executives rank improving people analytics as among the top two people prioritiesfor driving ROI, but HR is falling short. Executives in high-growth companies3are 2x more likely to believe that acting ontalent insights is as critical as acting on financial insights 27% 57% of the C-suite see improving people analyticscapabilities as the people initiative that will of executives believe their HR teameffectively advises them on human capitalrisks and opportunities 6.A collapse in employee thriving threatens productivity A depleted workforce, anxious about AI-driven job displacement and alert to inequities in AIaccess, cannot deliver sustained, exponential performance. 44% 66% Employee thriving in 2026 Employee thriving in 2024 35% of employees would consider leaving their organization if they feltdisadvantaged by unequal access to AI tools or training 7.It’s now or never for HR reinvention Few organizations report an embedded strategic HR function, and most respondents expect HRand IT to merge in the near future. HR reinvention is non-negotiable. 8% of the C-s