Sponsored by SAP.
As we wrap up another volatile year in the World of Work, it’s time to start forecasting where things are headed in 2026 and beyond. For those who, like me, can hardly believe we’re already moving into the second quarter of this century, hold on tight. We’ve experienced rapid growth in HR tech throughout 2025, even with all the uncertainty around us, and the next phase of innovation is poised to shake things up even more. Industry-wide shifts in even the best of economies can spark trepidation for some and a surge of adrenaline for others, but wherever you fall on that spectrum, let’s explore what’s ahead.
One resource I consistently rely on is SAP’s Future of Work Research Lab. Packed with insights, predictions, metrics, and forward-looking analysis, this team consistently delivers intel that deserves serious consideration.
Their latest report, The Road Ahead: Predictions and Possibilities for the Future of Work, centers on three interconnected pillars: Working, Workforce, and Work Practices. Each plays a distinct role in shaping the World of Work future, even as they influence one another.
The predictions in the report were developed by combining early signal detection, structured foresight techniques, and empirical validation. This included a review of hundreds of business and research articles, a global survey of more than 8,000 employees, and the application of established foresight methodologies.
Here’s a breakdown of a few standout findings, along with my own take.
The Shifting Workforce
SAP’s research indicates that young talent are in “peril,” a striking and concerning term for new graduates and the workforce at large. Macro-economic factors play a role, but so does the rise of AI taking on more entry-level responsibilities. We should all want a young talent pool filled with enthusiasm, not fear. So what does this mean?
Younger generations are increasingly considering gig work as a viable path in the absence of full-time entry-level work. This “Growth Through Gigs” trend reflects both opportunity and necessity. Flexible work can be empowering, but it may also signal a shrinking runway for early-career development inside organizations.
Leaders should pay close attention to how career pathways evolve in response to these shifts. Will you increase your contingent workforce? Do you hire full-time from the gig pool? How are you planning your organization’s long-term bench strength by bringing on young talent?
AI Disruption: What does this look like in the coming years?
The report’s Pillar I explores how AI will reshape jobs and tasks, redesign roles, and ultimately influence how people think, collaborate, and contribute. I’ve spent a great deal of time this year in demos and conversations with some of the brightest minds in the industry, and almost every discussion circles back to the same point: AI’s impact on productivity.
“Productivity” can mean different things depending on your organization, sector, or role. But at its core, improved productivity comes from time savings. We are all moving faster, and expectations have risen exponentially. No one waits weeks for a report anymore. We want information aggregated across multiple systems, synthesized into clear insights, and delivered in minutes, ideally in a format we can present immediately to others. That’s the power of AI.
What does this ultimately help us achieve? We’re still measuring, but the central theme is clear: the speed of information accelerates productivity. When technology reduces administrative drag, people gain time back and productivity improves. This isn’t a “nice to have.” It has become a “must have.”
SAP’s report maps out different scenarios depending on leadership’s approach with terminology that is new to all of us. For example, will your organization pursue an AI Upgrade or commit to an AI Overhaul? An overhaul sets the stage for a wide variety of potential outcomes beyond just productivity. Outcomes diverge depending on how fully leadership is willing to invest and shift processes and cultures.
You’ll also have the opportunity to assess if your leaders are AI Maximalists (prioritizing AI’s growing capabilities) or Symbiotic Strategists (prioritizing human potential through AI). These are crucial conversations, and the research offers a framework to help leaders evaluate their stance.
The New Cognitive Landscape: Who is this new teammate?
I tend to gravitate toward a people-first mentality, and this is where some interesting conversations are unfolding about AI’s humanization. As AI takes its place on our teams, the question becomes: how do we perceive this “employee”?
Is AI a Synthetic Teammate, an anthropomorphized collaborator, or a Fit-For-Purpose Tool-mate, an unbiased and task-driven asset? You may not have a firm answer yet, but this is where the conversations get interesting, because how AI is perceived will directly influence the cognitive shifts emerging within our workforce.
I’m firm in my stance that AI should not become an alternative to human critical thinking, a risk highlighted in the report as the Off-load Effect. Particularly for younger generations, this moment calls for intentional efforts to preserve strategic thinking and problem-solving capabilities. The alternative, the Amplify Effect, is far more promising: AI used to elevate and expand human cognition, not replace it.
These scenarios offer endless possibilities: time saved, happier employees, and countless decision points along the way. But one thing remains consistent: the organizations that thrive will be led by leaders who intentionally balance technology with culture, humanity, and purpose.
Digital Hearts/Human Needs
AI isn’t just changing how we work; it’s changing how we relate to each other. One of the most eye-opening insights in SAP’s research is that 40 percent of employees already turn to AI for emotional support, and many say they feel more supported by AI than by their coworkers. This made me pause.
In moments of stress, frustration, or even celebration, a significant share of employees now prefer a nonjudgmental, always-available AI listener. As AI becomes more natural and more empathetic, it is stepping into spaces that were once saved for our mentors, confidantes and work besties. What does this mean for our wellbeing? There is plenty of research about how we’re suffering from a loneliness epidemic, but let’s keep an eye on it.
This shift brings both promise and pitfalls. AI can help people feel heard, reduce isolation, and create psychological safety when human connection falls short. This is likely connected to the evolving needs of a more remote and distributed workforce. (Remember this when focusing on building and maintaining positive work cultures!)
Yet the risks are real. Over-humanizing AI may blur boundaries or dilute honest feedback. AI is trained to build people up, running the risk of avoiding valid critiques and criticisms from colleagues. The opportunity here is to use AI to strengthen relationships, not as a replacement. We should encourage employees to actively turn to others (versus AI) to deliberate ideas and make decisions. If we collectively place AI in the position of capable collaborator, we can keep authenticity and belonging at the center of work.
Generational Shifts: What’s Really Changing in 2026
Across SAP’s research, one theme is clear: every generation is feeling the impact of AI, just not in the same way.
Gen Z: The Peril and the Potential
Entry-level roles are disappearing, and Gen Z feels it on multiple levels. They’re turning to gig work to build skills and gain experience (which can be extremely useful), but they’re also worried about what they’ll lose without traditional development paths. Be sure to offer structure, mentorship, and a clear way into the workforce.
Millennials & Gen X: The Middle of the Transformation
These workers are carrying the weight of change by managing teams, navigating redesign, and becoming the most AI-amplified contributors. They’re adaptable but stretched. There are also a large population of managers who are concerned about their ability to be effective in a future where AI takes over the operational elements of management. Keep in mind their needs for clarity, support, and modernized career pathways.
Boomers: The Third Act, Reimagined
Older workers want flexibility and meaningful, high-impact work, and they’re invaluable carriers of institutional knowledge. The report’s Organizational Memory Architect model captures this perfectly. Think about how to offer roles that honor expertise with a focus on embracing new tech.
2026 is going to be a year full of learning and consistent changes. I highly recommend heading into the new year with an open mind, a commitment to research, and a strong hold on a people-first mentality.
Now is the time to start thinking about what tangible progress you want to make heading into next year and the rest of this decade. Take the time and space to strategically define how this shifting World of Work can better serve you, your team, and the larger ecosystem.
Download the research and learn more about SAP’s commitment to the future of work:
The Future of Work Predictions Infographic
New Future of Work Predictions Report
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