The Third Workforce: Why AI Isn’t Taking Your Job—It’s Changing It
IBM’s CEO recently made waves by revealing that replacing some HR staff with AI actually led to more hiring. At first glance, it sounds contradictory. But it’s not. It’s the future of work—already in motion.
And it validates what we’ve been talking about for a while...
We’re not entering a future of less talent...We’re entering a future of blended talent.
Welcome to the age of the Third Workforce!
The lines have blurred. It’s no longer just about who’s on your payroll. Today’s workforce is made up of:
Full-time, permanent employees
Freelancers, contractors, and gig workers
AI, automation, and digital ecosystems
This is the Third Workforce—and it’s redefining how work gets done.
Why the IBM CEO’s Comment Matters
IBM’s CEO, Arvind Krishna, recently stated that automating certain HR tasks didn’t reduce headcount—it freed up capacity to hire more people. Let’s say that again: Automation led to more hiring. Why? Because when you remove repetitive, administrative tasks from people’s plates, they finally have time to focus on what truly moves the needle ad adds immensely more value to the company...strategy, innovation, and culture. Humans are not being replaced; we are elevating them...again. Which is no different than when the PC and office automation hit the market in the 80s
and 90s.
The best news of all is HR sits at the center of this transformation. I know what you are thinking...most HR teams are already stretched thin. Many are still recovering from the whiplash of 2020–2023: layoffs, burnout, shifting business priorities, wars, tariffs, trade deals, you name it. Now, you're being asked to lead digital transformation, talent strategy, and AI integration—often without the resources to do it well.
This is the opportunity. Instead of doing it all with the same headcount, why not start small and free up resources a bit at a time. You don’t need to do it all at once. But think of how a small snowball will grow. Little by little you can expand your capacity with a third workforce.
Start using AI to:
Automate onboarding, scheduling, and feedback loops
Surface real-time talent insights
Streamline job descriptions and internal mobility
Support managers with digital coaching tools
Taking baby steps will free your team to do the high-impact work—coaching leaders, designing talent strategies, and shaping culture.
AI Isn’t a Tool. It’s a Teammate.
What if you start seeing it for what it is: a co-worker? How would that mind shift be transformative to your team and organization? Like any teammate, AI has strengths—speed, scalability, and pattern recognition. While most of us still have a healthy mistrust of AI and phantom answers, establishing the right boundaries will be key. Leading in the era of the Third Workforce means learning how to:
Build digital-human workflows
Manage performance across ecosystems
Set ethical guardrails for AI use
Coach teams to collaborate across functions and formats
While on this transformation journey, be sure to keep a focus on:
Human-centric leadership
Strategic alignment between talent and business goals
Skill development as a core investment
While you are building the new AI muscle of
While you are building the new AI muscle of:
Capability to orchestrate a blended workforce
Infrastructure to integrate AI and automation into workflows
New metrics for performance, trust, and collaboration across teams—human anddigital alike
Final Thought: Talent Is No Longer Just Hired—It’s Accessed
The Third Workforce isn’t a trend. It’s a significant shift in how we define and deploy talent. IBM’s story is just one example. Those who embrace this new model will have faster, more resilient, more strategic organizations. Those who don’t? Risk burning out their people and falling behind. This is HR’s moment—not to survive, but to lead.
ABOUT THE AUTHOR
Jeff Lupinacci spent the last 25 years at some of the world's best-known companies, such as Intel Corporation and Kimberly-Clark. His career spans key executive roles such as Chief Learning Officer, Chief Talent Officer, and Chief Integration Officer. After a successful corporate career, Jeff turned his focus to his true passion—serving the overworked and under-resourced HR profession.
Beyond his corporate success, Jeff is a sought-after speaker and thought leader, with his insights featured in leading publications such as CFO Europe, Nikkei Business Magazine, and Baylor Business Review. In addition to his business leadership, Jeff is an adjunct professor at Baylor University, where he teaches Human Capital Management for the Executive MBA program and leads the HR Strategy and Analytics capstone for undergraduates.
Jeff is the best-selling author of The Talent Advantage: A CEO’s Journey to Discover the Value of Talent. He lives in Dallas, Texas, with his wife and two doodles.