Only 35 per cent of CHROs believe their current HR technology approach is helping their organisation meet business goals. Practical changes in mindsets and behaviours can help close that gap.

CEOs believe they are entering a new business era, with 77 per cent saying AI will have the most significant impact on their industries over the next three years, according to Gartner’s 2025 CEO survey.

As organisations embrace far-reaching AI transformations, CHROs are tasked with leading and supporting AI and other digital transformation initiatives. However, only 35 per cent are confident their current approach to HR technology is helping their organisation achieve its business objectives.

Many CHROs struggle to maintain a positive digital change outlook because they lack budgets for innovation and tend to focus on maintaining baseline technology. Past experiences with poor adoption – often due to inadequate change management – can reinforce the belief that technology is more disruptive than beneficial. 

In some instances, this has resulted in CHROs often being left out of critical conversations with other executives, yet they’re expected to drive AI and digital adoption without having shaped the approach. This is despite 71 per cent being willing to contribute to these initiatives and consider digital technology in all aspects of their strategy.  

The challenge is intensifying as CHROs navigate evolving workforce expectations while under the scrutiny of their peers. Research from the Australian HR Institute found that three-quarters of HR practitioners don’t currently have an understanding of AI, despite seeing a strong use case from a productivity and performance perspective.   

Now is the time for CHROs to proactively improve digital influence to ensure HR plays an important role in AI and digital transformations. 

It isn’t just about understanding the latest HR technology tools or adopting AI-powered platforms, it’s a deeper blend of behaviours and mindsets that enable CHROs to lead with confidence, particularly during periods of change. 

A new CHRO imperative

Digitally effective CHROs lead, pursue and support technology within HR and across the organisation by driving the workforce culture and readiness necessary to successfully adopt AI and other digital technologies.

To achieve this, CHROs can start by sharpening their capabilities and intentionally building new behaviours and mindsets that accelerate leadership impact and help future-proof their role.  

Often CHROs fall into one of three leadership personas, each with different strengths and opportunities for growth. By recognising the behaviours and mindset attributes, they can enhance digital effectiveness, increase their influence in strategic conversations and, most importantly, empower their organisation to thrive in an increasingly digital world.

1. The digital follower

Grounded in people and culture leadership, the digital follower CHRO has strong awareness of technology but takes a cautious approach, often waiting for direction from IT or executive teams. 

Their limited ability to influence technology decisions can slow collaboration, hindering enterprise-wide transformation. It’s important they encourage tech familiarity within their teams and shift the perspective from reactive to proactive.

2. The digital dabbler

With heightened awareness of emerging technologies and alignment with business objectives, the digital dabbler CHRO has a willingness to explore innovation and strives for adaptability. 

However, responding to hype and urgent demands rather than setting strategy, affects their judgement and limits their power. Their impact can be elevated by working closely with executive peers to clarify digital ambitions and build trust.

3. The digital-forward CHRO

The digital-forward CHRO is well-aligned with organisational goals and recognised as a key partner. 

They regularly collaborate with other executives and play a key role in shaping the broader digital agenda. To continue growing, they should co-create strategies that demonstrate how HR can be the driving force for technology and people outcomes.

Regardless of what their current position is, progression comes from CHROs focusing on self-awareness, curiosity and consistent action. 

A practice, not a project

Mastering digital effectiveness isn’t an instant process, just as training isn’t a tick-a-box exercise. It requires sustained and consistent behavioural change over time through the adoption of easily attainable actions.

Having conversations with other executive peers will deepen a CHRO’s understanding of the organisation’s digital priorities. Asking questions that explore lessons learned from previous transformations, or carving out time to map goals against the broader enterprise helps elevate their strategic contribution. 

It’s also important to routinely revisit shared goals and consistently show up as a connector across departments. By initiating discussions and showing a willingness to test and scale new approaches, CHROs can become powerful influencers. 

Building digital effectiveness is no longer a nice-to-have; it’s a leadership imperative. By taking deliberate steps to shift behaviours and mindsets, engage cross-functionally with peers and align with the business strategy, CHROs can move beyond a support function to becoming architects of meaningful, enterprise-wide change.

Aaron McEwan is VP of Advisory in Gartner’s HR Practice.

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