One of the biggest mistakes companies are making with AI is treating it primarily as a way to reduce talent, rather than as an opportunity to rethink how people and technology can work together.

The temptation is understandable, as AI can automate work and take on tasks that once required large teams. Increasingly, HR has become an obvious place to focus on staffing reductions. AI can screen candidates, answer employee questions, and analyze workforce data.

This results in leaders asking how many HR staff members they still need. The bigger opportunity, though, is to design the organization to succeed in the future. In the AI age, one of the greatest competitive advantages may be something distinctly human: your people strategy.

I was once talking with Steve Kerr, coach of the Golden State Warriors, about people strategy. He told me that one of the most important values he instills in his team is connection.

Every player walks onto the court with something different happening in his life. One may be under enormous pressure to perform. Another may be dealing with something personal. Someone else may not be having his best day. Yet when the game begins, they have to figure out how to work together. If that connection breaks down, the entire team strategy can break down with it.

You can hire extraordinary people. Invest in the best technology. Build a smart business plan. But none of it guarantees that people will come together in a way that delivers the outcomes you want.

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