In the last few years, many big HR headlines concerned skills-based hiring, as organizations have emphasized the core skills needed for success in the future of work. But as AI rapidly revolutionizes what that future looks like, HR now has to confront a new question.

“If AI can do everything, do skills matter anymore?” questions Teuila Hanson, chief people officer at LinkedIn. It’s an issue HR leaders will need to help their leaders navigate in 2026, as employees increasingly look to AI to assist with critical functions of their jobs.

In fact, a philosophy professor at the University of California recently told Business Insider that workers are using AI at such a significant rate, it’s causing “skill atrophy.” As workers leverage AI for work and personal reasons—from emotional support to decision-making—the tech isn’t just automating processes; it’s filtering out opportunities for skills-building, according to Anastasia Berg.

Creativity, critical thinking and the capacity for long-term skill development, she says, are all at risk.

Skills in focus

That’s why, in 2026, HR needs to double down on skills-building, Hanson says.

“Skills still matter, but it’s going to be a different set of skills” HR needs to help their workforces hone in the coming year, she predicts.

As employees increasingly work with and alongside AI, they need to beef up their distinctly “human” skills—empathy, discernment, outside-the-box thinking.

“They are all going to matter more than ever,” Hanson says.

This is particularly true for early-in-career talent, who need the opportunities to build these foundational skills.

Yet, recent market data suggests a troubling landscape for entry-level hiring: U.S. employment among workers under age 24 is the highest it’s been in four years. A study out this summer from Stanford University found that employment among 22-to-25-year-olds dropped 13% from 2022-25.

While some pundits blame AI for organizations dialing back entry-level hiring, others point to different macro factors, including a post-pandemic hiring slowdown, unstable economy and geopolitical tensions.

Regardless of the influence, avoiding hiring early-in-career talent is “short-sighted,” Hanson says.

Early-career talent needed ‘more than ever’

It’s a reality Nickle LaMoreaux, CHRO of IBM, spoke to during this year’s HR Tech conference. After she led the implementation of the AI-powered AskHR—which handles 11.5 million transactions every year—she needed entry-level talent “more than ever.”

The work they do, and its strategic value, has shifted, she noted. But dialing back entry-level hiring will leave organizations with a significant gap in a few years, when they lack mid-level talent with foundational skills. IBM is focused on providing workers across levels with domain expertise, alongside critical judgment and decision-making skills.

“I tell my HR employees, ‘You need to be one step smarter than AI at all times,’ ” LaMoreaux said.

Building and benefitting from Gen Z skills

Gen Z largely recognizes that need, Hanson says, making them significant assets to the workforce.

In a recent meeting with early-in-career talent at LinkedIn, she was impressed not just by their technical prowess but by the ease with which they confront real problems by leveraging technology. For instance, one young worker mentioned how they were building an app to help them capture more full data about their Spotify listening history.

“They saw a problem and just built an app to solve this problem; they didn’t even think twice. That’s amazing,” Hanson says.

This is also the generation, she adds, who learned how to navigate online learning during the pandemic, driving both agility and adaptability.

“Why would companies not want to bring that talent in?” she asks.

Hanson says HR now has an opportunity to help leadership see those opportunities, while providing this incoming generation with the chance to continue to focus on the core skills that will drive success in an AI-powered workplace.

“I really do hope most companies are thinking about this,” she says. “If you want to grow, if you want to look for a new market, this is the talent, the energy you want to bring into your organization.