Using AI at Work: AI in the Workplace & Generative AI for Business Leaders 78: Using AI at Work to Rethink Talent and Workforce Strategy with Peter Cappelli
Nov 17, 2025
Peter Cappelli, a workforce strategy expert at the Wharton School, dives into how AI is reshaping hiring and management. He challenges misconceptions about job displacement and emphasizes the importance of human judgment alongside AI. Peter discusses the slow adoption of AI among companies and the need for realistic expectations. He highlights the necessity of reskilling and urges executives to focus on tangible benefits rather than just headcount reductions, advocating for a balanced approach to workforce transformation in the AI era.
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Talk Versus Real AI Adoption
- Most companies only talk about AI; few actually implement it seriously and get results.
- Expect only about 5% of firms to push AI with real organizational change.
Why Boards Obsess Over Headcount
- Boards and CEOs overemphasize headcount cuts because financial accounting rewards lower employee counts.
- That focus distorts priorities and creates unrealistic expectations for quick layoffs via AI.
Paint-Quality Model Proved Potential
- A manufacturer built a machine-learning model to judge paint quality to prove AI could work.
- The model matched employees but couldn't replace them because workers diagnosed root causes like humidity.
