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How co-innovation can power orgs through AI, uncertainty

June 13, 2025
in Human Resources
Reading Time: 3 mins read
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How co-innovation can power orgs through AI, uncertainty
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Today’s leaders face two relentless forces: AI transformation and global volatility. Success will go to organizations that empower people to think quickly, use technology wisely and act decisively. Co-innovation offers a practical approach—designing agile talent ecosystems that learn across disciplines, adapt in real time and deliver under pressure. It solves problems by working side-by-side to create what’s needed now—not what worked before or somewhere else. Chief human resources officers are uniquely positioned to lead this transformation, equipping teams to grow alongside evolving products, services and client needs.

Disrupted supply chains, geopolitical shocks and economic uncertainty are challenging companies and their employees. Traditional support systems are proving too rigid to keep up. At the same time, expectations are rising: Employees seek purpose and growth; clients want speed and certainty; boards demand performance with resilience.

To meet these demands, organizations need a new kind of thinking—one that turns disruption into competitive advantage. Co-innovation integrates people, processes and technology in shared, iterative environments. It fosters high-trust partnerships, enables learning through real-time insights and drives adaptive execution. It’s a dynamic model of change management, aligning talent and technology in motion.

Turning data and AI into human advantage

AI and data can drive tremendous value—but only when embedded in how people work. McKinsey estimates data-integrated workflows can raise EBITDA by 15% to 25%. Yet, data alone isn’t enough. It must be accessible, actionable and meaningful.

AI uncovers patterns, accelerates feedback and reduces manual effort—freeing teams to focus on higher-value work. Co-innovation ensures AI delivers real outcomes by connecting insight to daily decisions, building learning into team routines and enabling faster iteration. This lets CHROs lead talent transformation with speed and clarity by enabling:

  • early detection of workforce and market trends
  • personalized development, hiring and engagement strategies
  • real-time feedback and faster decision-making
  • predictive resourcing and reduced waste
  • agile responses to changing needs

Economist Paul Krugman notes that AI’s productivity potential hasn’t yet fully materialized. Co-innovation helps close that gap by creating human-centered environments where people iterate, adapt, and execute with confidence.

Reshaping talent for an AI-powered future

AI is reshaping expectations—new skills, new roles and new ways of working. McKinsey estimates that up to 30% of hours worked in the U.S. could be automated by 2030. But technology alone won’t get us there. As Harvard Business Review emphasizes, AI’s limitations—bias, opacity, lack of judgment—require thoughtful, human-centered design.

Co-innovation helps teams work together around change. It gives CHROs tools to embed learning—like retrospectives, decision reviews and feedback loops—into the rhythm of work. Teams can test ideas, adapt quickly and scale what works. Structure meets experimentation through clear goals, defined roles and regular rhythms—giving teams clarity amid ambiguity.

When diverse perspectives, disciplines and problem-solving approaches come together, deeper insight and breakthrough outcomes emerge. According to Bersin by Deloitte, companies with strong learning cultures are 92% more likely to innovate and 52% more productive.

As work shifts from routine tasks to high-value collaboration, CHROs must build environments where teams learn and grow faster. Co-innovation enables them to translate diverse perspectives into sustainable change—valuing individual contributions, fostering continuous improvement and turning potential into performance.

Operationalizing agility and learning

While many companies talk about agility, few make it real. Gartner reports that while 82% of leaders prioritize cross-functional teaming and upskilling, only 27% feel equipped to deliver. And consulting firms, responding to AI’s deflationary impact, now face pressure to prove value through speed and results.

To close this gap, CHROs must champion programs that embed agility into everyday work. For example:

  • Co-innovation readiness tracks: Develop cross-functional fluency across teams and partners.
  • Flow literacy bootcamps: Teach teams how data flows and how to act on it in real time.
  • Cognitive hiring practices: Prioritize curiosity, lived experience and unique perspectives.
  • AI + human collaboration labs: Create safe spaces to test workflows and tools.
  • Modern metrics: Shift from static output to measures of adaptability and shared learning.

The CHRO’s moment

When frameworks are built for adaptability, people evolve in tandem with products and markets. Learning becomes continuous, insight becomes action and innovation becomes habitual. This is a moment of clarity—and opportunity—for CHROs.


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