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The most interesting stories in HR & AI weekly

Productivity Surges As US Economy Produces More Without Adding Much More Labor

Economist Gad Levanon highlights a striking shift in the U.S. economy: labor productivity is now 10% above its pre-pandemic trend, with output growing nearly 3% annually despite almost no growth in hours worked. Why it matters: This is further evidence of the emerging “War for Productivity” we wrote about earlier this year, in which HR's strategic value will increasingly depend on helping organizations redesign work and unlock productivity gains. Reality Check: While AI may be contributing to these gains, its precise impact remains difficult to isolate from other factors driving productivity growth.

Goldman Sachs Finds AI-Displaced Workers Struggle to Find New Jobs

A new Goldman Sachs analysis of more than 15,000 displaced workers found that employees laid off from AI-exposed jobs took approximately one month longer to find new employment and were 10 percentage points more likely to remain unemployed after a year, with older workers facing particularly difficult transitions. Why it matters: AI-driven displacement may create longer-lasting workforce challenges than conventional layoffs, increasing the importance of proactive reskilling, redeployment, and career transition support. Reality Check: The study identifies workers likely displaced by AI based on occupational exposure and industry adoption, rather than confirming that AI directly caused each job loss.

PWC’s Critical Thinking Certification Program

PwC is launching a critical-thinking certification program for more than 85,000 employees, using personalized assessments, realistic work simulations, and AI coaching to strengthen employees’ judgment as AI takes on more research, writing, and analytical tasks. Key Insight: As AI automates foundational work, companies need to rethink how employees, particularly early-career professionals, develop critical-thinking skills traditionally acquired through hands-on experience.

LTM’s AI-Powered HR Service Agent

Global technology consulting firm LTM deployed RAIma, a multi-agent HR assistant built with Microsoft Copilot Studio that integrates with ServiceNow and other enterprise systems to answer employee questions and automate tasks across onboarding, leave management, payroll, learning, and performance. The company reports more than 78,000 monthly active users, over 600,000 employee queries resolved, and response times reduced from days to seconds. Key Insight: LTM illustrates the shift from simple HR chatbots to integrated AI agents that can complete transactions across multiple systems, potentially transforming how employees access HR services and reducing administrative workloads.

The Irreplaceable HRBP

What do HRBPs believe AI will struggle most to replace? Turning recommendations into action led last week’s poll (19%), followed by navigating organizational politics (17%) and exercising judgment in sensitive situations (15%).

Which aspect of your advice to the business would be hardest for an AI adviser to match?

A new study analyzing 50,000 job postings found that AI mentions increased 66% from 2023 to 2025, while employers increasingly described existing responsibilities in AI-related terms. Why it matters: AI isn't simply eliminating existing responsibilities or creating demand for new skills; employers are beginning to redefine how existing work gets done with AI. Reality Check: Explicit requirements to use AI tools still appeared in just 1.5% of postings in 2025, and changes in job advertisements don't necessarily reflect changes in actual work.

A new study from Germany's ifo Institute found that employment among 20- to 24-year-olds in occupations most exposed to AI fell 14% since 2022, even as overall employment in those occupations increased 1.8%. Why it matters: This adds to growing evidence that AI may be hitting entry-level workers first, potentially disrupting traditional career paths and future talent pipelines. Reality Check: The findings don't establish that AI caused the decline, and other labor market factors may also be contributing.

ServiceNow announced a new suite of AI-powered HR assistants, including an HRBP Assistant that answers routine questions with policy-backed citations, handles low-risk approvals, and routes employee relations cases, alongside tools for hiring, managers, and talent intelligence. Why it matters: AI vendors are increasingly targeting the transactional work traditionally performed by HRBPs, creating opportunities to shift their focus toward strategic workforce planning, organizational effectiveness, and talent advice. Reality Check: The assistants are currently in controlled availability, and their ability to deliver meaningful productivity gains for HRBPs has yet to be demonstrated at scale.

First Advantage, a major background screening provider serving two-thirds of the Fortune 100, acquired Data Diver Technologies for $125 million, expanding its AI-powered capabilities to collect and process criminal and court records. Why it matters: As AI transforms recruiting, major HR technology providers are investing in the data infrastructure and automation behind hiring verification, not just candidate assessment. Reality Check: The acquisition is primarily about improving the speed and efficiency of background checks, rather than introducing new AI capabilities to detect fraudulent candidates.

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Until next week,

Mike & Adam

HRBusinessPartner AI is published by PotomacHarbor. Follow us on LinkedIn.

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