Toward an AI-Powered Computational Testbed for Workforce Policy
Authors: Sumer S. Vaid, Ashley V. Whillans
Organizations: 1Negotiation, Organizations and Markets Unit, Harvard Business School
Abstract
Workforce transformations are difficult to forecast and costly to mismanage. In particular, the integration of artificial intelligence into knowledge work currently affects a substantial share of the global workforce, yet this transition proceeds without tools to forecast how individual employees will respond psychologically and behaviorally. We combine recent advances in LLM-powered generative agents with foundational management science and organizational behavior research to propose dynamic employee agents. Among consenting populations, these agents can be seeded with HR records, validated psychometric measures, and digital activity data to simulate employees' cognitive, emotional, and behavioral trajectories across successive workdays during planned organizational changes. In this article, we detail the computational architecture required to construct this simulation platform and define the privacy, accuracy, and representativeness safeguards necessary for responsible deployment. We argue that establishing this prospective forecasting infrastructure is a critical technical requirement for managing the current global workforce realignment around AI.
Generative AI (GenAI) deployment in the workplace is accelerating rapidly. Nevertheless, questions of who adopts, who benefits, and who is left behind and why are still understudied. In this paper, we investigate these dynamics in the context of a multinational tech company transitioning from a legacy Human Resources (HR) search system to a GenAI-supported system, analyzing search log data, survey data (n=25), and ten semi-structured interviews. Our findings show that adoption depended on the fit between the GenAI system's design assumptions and employees' work positionalities (role, spoken language, tenure). Further, we find that employees' trust in GenAI answers was built through source-checking, comparison among systems, and seeking input from colleagues or HR when in doubt. Our contribution is twofold. First, we provide empirical evidence of workplace GenAI adoption during a live organizational transition, showing that adoption is influenced by factors such as situational fit, search literacy, and trust calibration. It is also further shaped by knowledge conditions such as the system's content quality, employee training, and guidance. Second, we translate these findings into design considerations for inclusive deployment and adoption in high-stakes environments such as HR. We argue that organizations should design systems considering the role and context-sensitive benefits they yield to different social groups. They also need to treat the organizational knowledge infrastructure as AI infrastructure to improve the accountability and usability of GenAI systems
Dalia Ali, Maria José Rodríguez Velázquez, Manoel Horta Ribeiro +2
This study examines the integration of AI into Human Resource Management in German companies. We ask if and how AI-based technologies are \enquote{augmenting} human resource management. Organisations employ generative AI or predictive analytics to transform traditional human resource functions, to streamline routine tasks and to reallocate resources toward strategic, people-centred activities. Our findings from interviews and group discussions and a survey (N=410) reveal that while AI tools enhance HR analytics capabilities, their adoption mainly serves efficiency and rationalising goals. The introduction of AI tools is shaped by organisational transformation factors such as digital infrastructure, co-determination frameworks, and ethical implications. The research highlights both the strategic potential for improved talent development and the challenges posed by data governance and algorithmic transparency. Overall, this work contributes to understanding the ambiguous role of technological change in HR, which promises to augment predictive capabilities yet serves the ends of efficiency and rationalisation.
Generative artificial intelligence (AI) is expected to transform work, but less is known about how firms reorganize labor demand as the technology diffuses. Existing research has largely focused on which occupations are exposed to AI or whether exposed jobs decline. We extend this debate by examining whether firms adjust by changing where they hire, what jobs contain, or both. Using a nationwide dataset of job postings in the United States, covering all sectors of the economy, we construct a dynamic, posting-level measure of generative AI exposure with a two-stage large language model pipeline. The pipeline identifies the tasks described in each posting and classifies the extent to which generative AI can perform or assist them. We then decompose changes in aggregate exposure into two margins: reallocation of demand across jobs and redesign of tasks within jobs. We document three main findings. First, generative AI exposure is dynamic rather than fixed, changing substantially over time. Second, labor demand adjusts through both margins. Hiring reallocation explains the largest share of the aggregate decline in exposure, accounting for 52% on average, while within-job redesign becomes increasingly important, accounting for 39.5%. A complementary Oaxaca-Blinder decomposition shows that shifts in occupational composition account for about 90% of the exposure change attributable to observable job characteristics. Third, adjustment differs across the job ladder. Senior jobs adjust earlier and mainly through reallocation, whereas junior jobs adjust through a broader mix of reallocation, redesign, and their interaction. These findings suggest that labor-market adjustment to generative AI is a process of organizational reconfiguration, in which firms reshape both hiring demand and the task architecture of work.