HR leaders say AI ROI is a red herring. Here’s what firms should focus on instead

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Kristin Stoller is an editorial director at Fortune focused on expanding Fortune's C-suite communities.

Good morning!

A few weeks ago, on a call with Fortune 500 CHROs across a multitude of industries, one tentatively brought up an issue she’d been having with her leadership team: They had asked her to prove the ROI, a figure showing monetary return on investment, of her investments in AI. She was perplexed.

It turns out, she wasn’t the only one. A recent MIT report showed that, despite the billions spent on AI initiatives, 95% of companies are seeing no measurable impact on their bottom lines.  

But Ruchi Kulhari, chief human re

“If we truly believe AI to be an enabler, It’s going to reflect its positives in everything we do in a strategic, smart way,” she said. “If we are looking for that one silver bullet output,” she added, “we’re kidding ourselves.”

If AI initiatives genuinely work, she said, the results will eventually show up in retention rates, the new skillsets employees build, and—in time—the revenue a company generates.

The question leaders should be asking instead is whether they are willing and ready to challenge the status quo—and empower their employees to do it, said Teuila Hanson, LinkedIn’s chief people officer. 

“You can’t just sprinkle AI on top of existing structures and expect your metrics or some wild metric to skyrocket,” Hanson said. “As an organization, you need to really reimagine how work is going to get done and how ideas are generated.”

Speaking of AI, our Fortune Brainstorm Tech summit kicks off today in Park City, Utah, where I’ll be moderating along with my talented colleagues. Follow along via our livestream here.

And before you go: Be sure to check out our new podcast, Titans and Disrupters of Industry. Fortune Editor-in-Chief Alyson Shontell will go in depth with the powerful thought leaders shaping both the world of business and the very way we live. The first episode features an exclusive interview with Accenture’s Julie Sweet, who discusses the company’s strategic shifts and the impact of AI, tariffs, and geopolitical changes on businesses.

Kristin StollerEditorial Director, Fortune Live Mediakristin.stoller.com

A round-up of the most important HR headlines.

Operating forklifts and pouring concrete have replaced swimming and kayaking at these new summer camps, where kids learn trade skills to set them on a stable career path. Bloomberg

Amazon CEO Andy Jassy is reshaping the culture at the tech giant, from monitoring employee phone use to creating a "bureaucracy mailbox." Business Insider

In today’s uncertain job market, workers are “job hugging” or clinging to their current roles—causing headaches for bosses and the economy. Wall Street Journal

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