As AI reshapes how work gets done, some HR leaders say the link between workforce size and business performance is beginning to break down. There is evidence of this from McKinsey, which estimates that generative AI could lift U.S. labor productivity by 0.5%-0.9% a year through 2030, helping companies scale up without proportional hiring.

“For the first time, organizations can increase output, accelerate decision-making and expand market reach without scaling headcount at the same rate,” says Ronni Zehavi, CEO and co-founder of HR technology platform HiBob. He predicts that the organizations that pull ahead will be the ones that can redeploy talent quickly, pair human judgment with machine intelligence and out-adapt their competitors—not necessarily the ones with the largest workforces. READ MORE