These changes are top of mind for CEOs and HR leaders we speak to. Everywhere we go, we get asked the same question: “What does AI mean for our business and workforce?” Our answer is always the same: Clinging to old talent playbooks will mean falling behind. But those who adapt—who reimagine how they hire, develop, and lead—will unlock entirely new levels of performance. It starts by embracing four critical shifts.

From cost center to growth engine

For too long, HR and Learning & Development (L&D) functions were treated as support roles at the periphery of the business. That era is over. In today’s environment, L&D must be the business strategy.

Leaders can’t afford to focus only on employee engagement, satisfaction, or even retention in isolation. These are still important—but they’re not nearly enough. What will matter in the next decade is whether—and how—your talent strategy is delivering the skills, agility, and culture your business needs to grow. And whether you can prove it with numbers.

With this shift comes greater scrutiny. CHROs must be prepared to answer questions about the business impact of L&D investments, internal mobility’s effect on operating margin, and how leadership readiness moves the needle. These are business questions that belong at the center of every HR playbook.

Degrees vs. credentials: From absolutism to a strategic rebalancing

For decades, companies relied on four-year colleges to supply the talent they needed. But as AI evolves, skill requirements shift faster than traditional degrees can keep up with.

To meet the moment, HR leaders must have a deliberate strategy for balancing the four-year degree and stackable, short-form credentials. Stackable credentials are designed to serve both the learner and the employer, filling urgent skill gaps in sectors with persistent talent shortages while laying the groundwork for sustained career growth. Today, almost two-thirds of Guild learners are pursuing targeted skill development, reflecting the evolving demands of a workforce shaped by rapid technological change.

But let’s not confuse this shift with the decline of the college degree. In fact, research from Georgetown University’s Center on Education and the Workforce projects 42% of U.S. jobs will require at least a bachelor’s degree by 2031. The degree remains a critical foundation. What’s changing is how we combine foundational learning with flexible, stackable development. We must all hire for potential, invest in growth, and embrace a model of learning that accounts for both credentials and competencies.

From competency models to real-world readiness

One thing we learned over the last decade was, in this age of AI, leaders must be able to manage ambiguity, lead with empathy, and make decisions in fast-moving, often uncertain environments. Technical excellence alone won’t cut it in the next decade.

That’s why today’s leadership programs must be experiential, practical, and personalized. Whether it’s through stretch assignments, rotational programs, or peer learning cohorts, leaders need environments where they can build confidence, judgment, and vision.

At the same time, we can’t ignore the demographic realities. In the United States, 12% of the workforce—the last wave of baby boomers—is set to retire within the next decade. If you don’t have a strong leadership pipeline in place today, you’re already behind. Succession planning must start now. And it must extend beyond the top 5% of your org chart.

From power shifts to mutual accountability

The pandemic changed how we work and how we think about work. For a brief moment, employees had more leverage than any other time in history. Now that dynamic is shifting again. We’re heading toward a new equilibrium—one where employees want growth and security, and employers need adaptability and performance. It’s a trade-off, and it’s built on mutual accountability.

To navigate this new era, employers must double down on internal mobility and career development. Identify the hidden talent already inside your company and give them clear, supported pathways to grow. Coach them, mentor them, engage them. These are the new levers of retention and readiness. But employees have a role to play, too. They must be willing to embrace the ethos of continuous learning, seek feedback to learn and grow, and confront new challenges with agility and adaptability. The future of mobility must be built together.

Our imperatives for the next decade

As we look to the next decade, HR leaders are uniquely positioned to skill, support, and grow the talent their organizations already have—building internal pipelines that drive both business performance and upward mobility for employees. If we get this right, we won’t just future-proof our organizations—we’ll build a more inclusive and resilient economy prepared for the future of work.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.