How AI Can Strengthen the Talent Function

Artificial Intelligence can feel like a topic with two extremes. On one side, you hear people say “AI is the future, and if companies don’t adopt it now, they’ll fall behind.” On the other side, you hear people warn that “AI is moving too fast, it risks replacing people, and lacks proper regulation.”  

We met with Lydia Hu, a change management and talent leader, who shared that the truth, especially in the Talent space, sits somewhere in the middle. AI isn’t magic, and it isn’t a threat in the way that some fear. But it is a powerful tool that can remove tedious work, reduce bias, and help employees grow. As consultants, understanding these practical applications of AI in the talent space can help us guide clients toward real, meaningful value: 

1. Use AI to Find Skills Faster

Many HR teams are overwhelmed. With onboarding, benefits, compliance, and the day-to-day needs of employees, the last thing most HR leaders have time to think about is, “What skills do our people actually have?” 

That’s where AI shines. 

Employees already generate huge amounts of data through: 

• LinkedIn profiles 

• Resumes 

• Employee surveys 

• Learning records 

AI can scan all of that in minutes and produce a clear, organized list of skills for each role or employee. This work, if done manually, can take an HR practitioner two to three weeks. AI cuts that labor by 70–80%. 

AI is not perfect, someone still needs to review the output, but it removes the heavy lifting and the human bias that often appears when people look only for familiar keywords or experiences. AI treats every word equally, helping uncover strengths that might otherwise get missed. 

This alone is a game-changer for Talent teams starting from scratch. 

2. Use AI to Build a Skills Taxonomy 

Once you know what skills exist, the next question is: What do we do with this? 

This is where a skills taxonomy comes in. Think of it as a structured map that helps classify and organize the identified skills. For example, “communication” might include: 

• Written communication 

• Active listening 

• Presentation skills 

• Facilitation 

AI can help build these groupings quickly, even when a company has thousands of unique skills across its workforce. If done manually, this work becomes almost impossible, especially for large organizations. 

AI doesn’t just group skills; it also shows how they relate to each other. Maybe an employee doesn’t have “communication” listed, but they do have “facilitation.” AI recognizes that facilitation is part of communication and connects the dots automatically. 

This fluid, flexible taxonomy becomes the foundation for everything that follows. 

3. Use AI to Power a Talent Marketplace to Help Employees Move, Grow, and Stay 

Once a taxonomy is created, companies can use AI to power an internal talent marketplace—basically a matchmaking system between employees and opportunities. 

Here’s how it works: 

• A team posts a project or opportunity and lists the skills someone can use or learn. 

• Employees create a profile that lists their skills and interests. 

• AI matches people to opportunities they might not have found on their own. 

This supports talent mobility, which is critical for reducing turnover. When employees can see clear pathways to grow, even sideways, they are far more likely to stay. Not all promotions move “up.” Sometimes the best move is a chance to pivot, try a new skill, or support a special project. 

For consultants and companies, this is a powerful way to attack two major root causes of turnover: 

• Employees feel stuck with no growth opportunities 

• Employees don’t know what the “next role” could look like 

AI can give employees visibility into their future and gives managers a tool to support real development conversations. 

AI Is Still Young and That’s a Good Thing 

It’s easy to forget how new all of this still is. ChatGPT launched in late 2022, basically three years ago. In technology terms, AI is a toddler. It’s learning, evolving, and growing fast. Companies and consultants are still figuring out the best ways to use it. 

This means: 

• There will be trial and error 

• Early adopters will lead the way 

• Processes and regulations will need to catch up 

• AI should support humans, not replace them 

Most importantly, AI is only as good as the data it receives. It gives us insights, but people still need to make the final decisions. 

Final Thoughts 

AI isn’t a silver bullet. It won’t fix a toxic culture or magically turn poor managers into great leaders. But in the Talent space—especially around skills, development, and mobility—AI is already delivering real value. 

For change management consultants and leaders, the opportunity is clear: 
Use AI to remove low-value work, organize the skills you already have, and give your employees visibility into their future. 

AI may still be young, but the companies that learn to use it thoughtfully will be the ones that grow stronger, faster, and with far more engaged employees. 

Contact ChangeStaffing for support with using AI strategically within your organization.  

Thank you to Lydia Hu for her thought leadership and for collaborating with us on this blog. 

Written by Kylette Harrison.