By Renuka Iyer, Organization Development and Knowledge Management Program Class of 2025 and Executive Vice President and Chief People and Culture Officer at PhRMA
I was at a recent gathering of Chief Human Resources Officers (CHROs), organized by the Institute for Corporate Productivity (i4cp). The conversation, as it often does these days, turned to artificial intelligence and the future of work.: We were discussing Workforce Readiness in the Era of Artificial Intelligence (AI). One statement captured the room’s attention: “AI won’t replace humans, but those who can work with AI will replace those who can’t.” This reflection felt especially timely as we noted the world’s rapid shift from generative AI—which produces content such as text, images, or code based on patterns in data—to agentic AI, which not only generates content but also takes autonomous action, pursues goals, and adapts in real time. It was a wake-up call. The question that followed was equally urgent: What new skills will professionals need in a world increasingly shaped by agentic AI?
My answer was simple: organization development (OD) skills.
Why OD? Because the nature of the structures of work, knowledge, and access to knowledge are being rewritten. With the advent of generative AI, knowledge management has undergone a fundamental shift. Where organizations once sought to retain knowledge as their competitive advantage, today’s imperative is enabling the flow of knowledge, even in a litigious environment amongst competitors. In this new paradigm, adaptability, collaboration, and learning are the currency of success.
To lead effectively where human and AI converge, HR and business leaders must cultivate four core OD capabilities:
- Leveraging Group Dynamics to Shape Organizational Culture
AI can automate tasks, optimize workflows, and surface insights at unprecedented speed, but it can’t create belonging. It can’t build trust. That work remains firmly in human hands.
Culture, after all, isn’t a software update; it’s the shared, often unspoken, ways of thinking, working, and being that are passed down within groups. It’s how teams interpret what matters, how decisions get made, and what behaviors are rewarded or avoided. Culture is how people live in an organization, and it’s key to how they survive and thrive.
With the rise of agentic AI, the pace of change has never been faster. But faster change requires faster trust. This means we need to stop thinking of culture as a monolithic thing to shift and start approaching it where it lives: in teams. Instead of asking, “What is the culture of this organization—and how do I change it?”, a more powerful question is: “What’s happening within this team? What group dynamics are at play? And what conversations need to happen to bring greater alignment, cohesion, and trust here?”
This team-level lens is more than just a people practice—it’s a strategic lever. When human insight meets machine intelligence, the ability to read and influence group dynamics becomes essential to leading transformation.
In this new era, soft skills aren’t soft. They’re survival skills.
- Use of Self as an Instrument for Change
Dialogic Organization Development (OD), as articulated by Gervase Bushe and Robert Marshak, diverges from traditional problem-solving models and views change as an emergent process that unfolds through conversation and shared meaning. Rather than diagnosing and fixing, Dialogic OD invites stakeholders into open dialogue to co-create generative narratives, deepen collective understanding, and spark transformational shifts. It rests on the belief that reality is socially constructed through language and interaction, and that change unfolds as people evolve their ways of thinking, relating, and acting together.
In today’s world, where conversations are constant among people and increasingly between people and machines, the ability to pause, reflect, and act with intention is a critical leadership skill. This is where the use of self comes in: the deliberate application of one’s full presence—values, emotions, and behaviors—to respond skillfully to the needs of the moment. It’s not just about personal insight; it’s a cornerstone of strategic leadership in complex, rapidly changing environments.
As AI tools like GPT automate more tasks, from content creation to decision support, the use of self becomes even more vital. The human role is no longer to be the source of all knowledge but rather the curator of meaning, trust, and culture. Leaders must show up with greater intention, bringing clarity, empathy, and ethical discernment to the use of AI. In this context, self-awareness isn’t optional—it’s essential. The more machines take on, the more we must bring our whole selves to lead, guide, and ensure that technology serves the human spirit, not the other way around. This is the moment for leaders to step into their highest calling: not to compete with AI, but to partner with it, bringing the uniquely human capacity for reflection, dialogue, and transformation into every interaction.
In the age of agentic AI, who we are and how we lead matters more than ever.
3. Reframing Difficult Conversations as Opportunities for Alignment
High-stakes conversations are part of every organization, whether about performance feedback, shifting priorities, unmet expectations, or competing demands. Too often, they’re labeled “difficult,” triggering avoidance, anxiety, or defensiveness. But what if we reframed them?
Rather than viewing these moments as confrontations to manage, we can help leaders see them as opportunities for alignment—chances to gain clarity, strengthen relationships, and reaffirm shared purpose. When approached with curiosity and intention, what once felt tense can become a catalyst for trust and forward momentum.
The key to making this shift lies in how we listen. In Theory U, Otto Scharmer outlines four levels of listening:
- Habitual listening – hearing through the lens of what we already know.
- Factual listening – opening the mind to new data and perspectives.
- Empathic listening – tuning into others’ emotions and experiences.
- Generative listening – sensing what’s emerging beyond what’s said.
Generative listening transforms tension into connection. It opens space for a deeper understanding and insight into how others perceive and experience the world.
Reframing “difficult conversations” as “conversations for alignment” doesn’t erase discomfort, but it shifts the tone and goal. Leaders who lean into these moments with empathy and presence model honest dialogue, learning, and mutual respect.
In today’s fast-paced, AI-augmented environment, this human skill isn’t just important; it’s a strategic advantage.
4. AI Meets AI: Appreciative Inquiry for AI
Organizations exist to create value for stakeholders—value that individuals alone cannot generate. Traditionally, most strategic and visioning exercises approach this goal through a problem-solving lens: identify the gap between the current state and the ideal future, then create a plan to close it. While effective in certain contexts, this approach is rooted in a deficit mindset, focusing on what’s missing or broken.
An alternative is a strengths-based, generative approach—one that begins with what is already working and builds from there. This is the foundation of appreciative inquiry (AI), a framework that emphasizes the power of language, shared meaning, and affirmative inquiry. As ODKM Program Director Tojo Thatchenkery describes, appreciative inquiry is “a method of organizational change that seeks to uncover the life-giving forces of an organization and build upon them to create sustainable transformation.” His work particularly highlights the importance of cultural context and the socially constructed nature of organizational reality.
As AI tools become more embedded in HR practices from coaching bots and feedback assistants to onboarding and performance support systems, they are not just performing tasks; they are shaping how employees experience the workplace. This creates a critical opportunity and responsibility: How do we ensure these tools foster human connection, not just automation?
Appreciative inquiry offers a valuable guide. Rooted in the belief that organizations grow in the direction of the questions they ask, appreciative inquiry invites us to design technology that promotes generative, strengths-based dialogue. When we train GPT-powered tools with this mindset, we embed curiosity, optimism, and dignity into everyday interactions.
Instead of asking “What’s going wrong?” a coaching bot might ask, “What’s working well, and how can we build on that?” Rather than delivering a generic onboarding script, an AI assistant could explore a new hire’s strengths, values, and peak experiences, turning orientation into a relational and empowering conversation.
This shift isn’t just about better questions—it’s about a cultural transformation. It repositions AI from a tool of compliance and efficiency to one of connection and co-creation. And in doing so, it ensures that as technology scales, it does so in alignment with human-centered values, fostering emotional intelligence, shared purpose, and the generative spirit that defines thriving organizations.
The Human Edge in a Machine-Enhanced World
The age of agentic AI isn’t a threat, it’s an invitation. An invitation for leaders to step into their highest potential—as cultivators of systems that learn, grow, and adapt. OD offers the mindset, methods, and muscles to meet this moment. The future belongs not just to the tech-savvy but to those who can create meaning, build culture, and move people toward shared purpose.
Let’s embrace this shift, not with fear, but intelligently with the tools of transformation.
About the Author
Renuka Iyer is executive vice president and chief people and culture officer at PhRMA. She is a seasoned HR and organization development leader with more than 30 years of experience in global organizations. She has deep expertise in talent strategy, leadership development, and knowledge management, helping organizations align people practices with business goals. Iyer holds a master’s degree in organization development and knowledge management from George Mason University. She is a lifelong learner, coach, and advocate for human-centered change, drawing inspiration from systems thinking, appreciative inquiry, and the power of meaningful conversations.