Pope Leo XVI's first encyclical, "Magnifica Humanitas," raises ethical concerns about AI, warning against prioritizing efficiency over human dignity. The encyclical could prompt religious accommodation requests from employees, particularly Catholics, who view AI as conflicting with their beliefs, says Jonathan Segal, an employment attorney. Segal advises HR leaders to engage employees in dialogue to find mutually acceptable solutions.

AI is reshaping HR technology by making software development more efficient and accessible. Contrary to fears of job losses, AI tools are enabling HR professionals to bridge the gap between domain expertise and technical execution. With AI, recruiters and analysts can prototype solutions themselves, shifting from passive users to active architects of workflow and system design. This evolution emphasizes curiosity, creativity and curation as essential skills for the modern HR professional, while also highlighting the enduring importance of engineering judgment to turn AI-generated prototypes into robust enterprise products.

Despite their potential to provide secure, verifiable records of employee skills, digital credentials have not seen widespread adoption in recruitment. Research by 1EdTech shows that employers frequently revert to traditional resumes because the current digital credentials ecosystem poses challenges for understanding and comparing skill information. The inconsistent structure, varying levels and lack of clarity in digital credentials have limited their effectiveness, keeping them as supplemental rather than primary inputs in the hiring process.

The EU Artificial Intelligence Act, which mandates transparency and human oversight for AI systems in hiring, is seen as a model for global compliance amid a patchwork of US laws. "For large enterprises, I think the EU AI Act is more likely to change how AI is deployed than become another checkbox," says Avature CEO Dimitri Boylan. "Our customers are large organizations with major brands. They are heavily scrutinized by regulators, the media, candidates, employees and the public. For them, clarity reduces risk."

Perks and pay alone are not enough to drive employee engagement, which must be earned through a positive work culture. "Employee engagement is an emotional state where employees feel passionate, energetic and committed to their work," says Ron Johnson, who suggests that leaders focus on creating an environment where employees feel valued and connected to their work.

A Standley Systems survey finds that almost 30% of desk workers lose at least an hour of productivity each week due to technical issues, with 85% experiencing them daily. Most attempt to resolve issues themselves, and 70% prefer preventive investments over workaround expectations. "Employees should not have to build their workday around unreliable technology," CEO Greg Elliott says.