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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

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As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
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87% of business leaders think AI agents will force companies to redefine performance and upskill their human workers 

Brit Morse
By
Brit Morse
Brit Morse
Leadership Reporter
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Brit Morse
By
Brit Morse
Brit Morse
Leadership Reporter
Down Arrow Button Icon
June 30, 2025, 8:40 AM ET
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Business leaders get real about the risk of AI replacing human workers. Vector Images

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Companies are scrambling to introduce AI agents into their workflow at a rapid clip. But workers are afraid that this tech revolution may actually lead to their own professional demise, and a new study shows that they have good reason to be worried. 

Around 87% of business leaders believe that AI agents will force organizations to redefine performance metrics and upskill their employees in roles that AI could displace, according to management consulting firm KPMG’s latest AI Quarterly Pulse Survey. That includes providing additional training, creating new goals, or even changing their roles. 

“Our clients are no longer asking ‘if’ AI will transform their business, they’re asking ‘how fast’ it can be deployed,” notes Todd Lohr, head of ecosystems at KPMG. “This isn’t just about technology adoption, it’s about fundamental business transformation that requires reimagining how work gets done and how it is measured.”

The deployment of AI agents across organizations has tripled since the fourth quarter of last year, according to the report. Around 82% of business leaders believe that AI agents will become valuable contributors within the next year, and the same number believe these agents will completely change the business landscape in the next two years. 

CEOs have recently become bolder about saying that AI could lead to leaner human workforces. The CEO of Anthropic said earlier this year that AI could eliminate half of entry level roles. The CEO of language learning app Duolingo told staff in April that they could only hire a new person if they first proved the task couldn’t be done with AI. And Meta recently announced plans to replace up to 90% of its human employees who review the platform’s privacy and societal risks with AI. 

Upskilling employees might be easier said than done, though. While two-thirds of leaders expect employees to update their AI skills, only a third say the companies they work for are providing policies around how the technology should be used, according to recent research from talent advisory The Adecco Group. A separate study from management consulting firm Oliver Wyman found that while 79% of workers want AI training, only 57% say such upskilling efforts made by their company have been inadequate. 

“As employers, we have a responsibility to help prepare current and future workers for the transition to a new era of work,” writes Edwige Sacco, head of workforce innovation at KPMG. “Investments in human-centric change management, modern ways of learning, proactive upskilling, and new human-AI collaboration models are essential for unlocking the long-term return on AI investments.”

Brit Morse
brit.morse@fortune.com

Around the Table

A round-up of the most important HR headlines.

Some users of AI coaches are finding them to be better than the professional human ones because they’re able to open up more easily. Wall Street Journal

The AI frenzy is back once again as companies like Amazon and Meta are upgrading their spending budgets to prioritize the latest technology. New York Times

California labor groups are pushing for legislation that would require businesses to notify workers when they use AI in the workplace. Bloomberg

Watercooler

Everything you need to know from Fortune.

Keeping up with tech. Generative AI and AI agents are disrupting online shopping, and large e-commerce powerhouses like Walmart and Amazon may be impacted. —Jason Del Rey 

Career paths. For some executives, the road to success is a rather straightforward one, but the CEO of David’s Bridal has a much rockier start. —Emma Burleigh

The impacts of RIFs. While job openings have broadly remained steady, opportunities in private-sector government contractors have plummeted, according to new data. —Sasha Rogelberg

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.
About the Author
Brit Morse
By Brit MorseLeadership Reporter
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Brit Morse is a former Leadership reporter at Fortune, covering workplace trends and the C-suite. She also writes CHRO Daily, Fortune’s flagship newsletter for HR professionals and corporate leaders.

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