New Businessolver research reveals executives focused on job cuts are half as likely to invest in AI upskilling
New research has exposed a fault line inside the C-suite. Executives using AI to reduce headcount are half as likely to invest in AI upskilling. For HR leaders, the gap presents both a diagnostic and an opportunity.
The finding comes from Businessolver's 11th annual State of Workplace Empathy study. The survey covered 300 C-suite executives and 1,000 employees.
The upskilling gap is sharpest among executives whose primary AI motivation is cutting costs. Leaders in that group are half as likely to make workforce training a priority, compared with peers whose AI agenda is focused elsewhere.
The data points to a strategic contradiction inside many organisations' AI plans.
"AI does not create value on its own. People create value when they're enabled with the right set of skills and confidence," said Sony SungChu, chief AI officer at Businessolver. "If leaders reduce capacity without building capability, they could risk undermining the very productivity gains they're chasing."
What does the C-suite AI divide mean for HR strategy?
The Businessolver research reveals significant risk assessment gaps across C-suite functions. Among chief information officers and chief technology officers (CIOs and CTOs), 88% are concerned that technology will outpace internal systems or workforce skills. Among chief financial officers (CFOs), just 63% share that worry – a 25-point gap.
The investment priorities of the two camps also diverge sharply. Executives not focused on headcount reduction invest in predictive analytics at more than double the rate of their cost-focused peers. The gaps extend to time savings and productivity (15 points) and support for reducing employees' administrative burden (14 points).
Executives driving headcount-focused AI agendas are also more likely to view empathy as an obstacle. Nearly one in three (30%) say being an empathetic organisation gets in the way of their personal business goals. Among executives who do not cite headcount reduction as an AI priority, that figure drops to 19%.
How should organisations approach AI upskilling when the C-suite is divided?
The research identifies a direct performance risk for organisations that skip AI upskilling investment. It found that adequately trained employees were up to 1.5 times more likely to report stronger career progression, confidence, and optimism.
That's especially important for HR professionals building people-centred AI strategies that retain skilled employees through periods of rapid change. Without a capable workforce, technology investment is unlikely to return its projected value.
Employees report their own version of this gap. Nine in 10 senior executives believe their staff are excited about AI, yet employees are far from enthusiastic. Some 39% say AI has them worried about their future. Another 31% worry they are falling behind, while 49% say they have had no support in learning AI.
"AI will change jobs and economic pressure will force hard decisions," said Jon Shanahan, president and chief executive officer of Businessolver. "These are challenges but also opportunities for companies to demonstrate empathy in the face of a generational workplace shift, while creating stronger, more resilient companies – not just more efficient ones."
The pressure high-growth organisations face
High-growth organisations face the sharpest version of this tension. Those reporting significant financial growth over the past 12 months are twice as likely to cite AI-driven headcount reduction as a primary investment motivator. They also report twice the incidence of layoffs, alongside higher recruiting activity. Benefits investment lags by 13 points.
These figures show that the workplaces under the greatest commercial pressure are often the ones where employee support is least available.
The Businessolver data reinforces a familiar argument for HR professionals building people-centred AI strategies designed to retain skilled employees. AI adoption without workforce planning creates a capability gap that compounds over time.
Identifying what HR priorities should look like heading into 2026 and beyond starts with bridging this divide. Making the case for AI upskilling – as a commercial imperative, not a welfare measure – is the most direct lever available to HR leaders.
