The Rise of the Machine...Not the Terminator, but The Third Workforce
Work has evolved. So has the workforce.
Fifty years ago, it was all about traditional, full-time employment—clear org charts, centralized offices, and paper-based processes. Then came the rise of freelancers, contractors, and gig workers—the second workforce. Fast forward to today, and we’re entering a new era: one where people and intelligent systems work side-by-side.
Welcome to the world of the Third Workforce.
Let’s break it down.
What’s Changed?
Work Styles: We’ve shifted from rigid hierarchies to flexible, AI-augmented teams.
Work Habits: Out with the filing cabinets, in with asynchronous, digital-first collaboration.
Work Locations: No longer tethered to a desk—hybrid, distributed models are the new normal.
The Workforce: We’re moving from human-only labor to intelligent systems and Agentic AI.
This isn’t science fiction. It’s already here.
From “Headcount” to Ecosystems
Traditionally, when HR talked about workforce planning, we meant people on payroll.
Maybe a few contractors. That was it. Now, our workforce includes:
Full-time employees
Freelancers and contingent workers
AI agents, bots, and on-demand digital ecosystems
Talent isn’t just hired. It’s accessed. And that changes everything.
Let’s Talk About the Elephant in the Room
Yes, we’ve all seen the headlines: “AI Will Replace HR.” I get it—I've wondered the same thing. And if we’re being honest, many HR leaders have asked:
“Will AI take my job?”
“Do my executives see HR as strategic—or just as an administrative function?”
Here’s what I believe: most companies that made it through 2020 owe a huge debt to their HR teams. I personally worked 7 days a week from April to July of that year (ok, I took Easter off). We showed up when it mattered most. But fast forward to 2023, and many of those same executives started cutting HR again—forgetting who helped keep the business afloat.
So yeah, CHROs are tired. Overworked. Under-resourced. Here is where the opportunity lies in wait. Deloitte recently reported that ~30% of HR tasks will be automated by 2030. To me, that’s not a threat—it’s a gift.
Raise your hand if you could use 1, 2, or even 3 more team members to handle your current workload. What if we embraced a third workforce instead of hiring more people to cover the gap?
Meet the Third Workforce
First Workforce – Full-time, permanent employees
Second Workforce – Contractors, gig workers, freelancers
Third Workforce – AI, automation, digital platforms, and intelligent agents
This isn't about replacing people. It’s about partnering with digital collaborators to co—create and co-innovate and shift our focus to the work that matters.
To take advantage of this, we must stop thinking of AI as a tool and start treating it like a coworker. Here’s how:
Keep:
Human-centric leadership
Ethical responsibility
Talent strategy aligned with business goals
Skill development as a core investment
Build:
Capability to orchestrate a blended workforce
Infrastructure to integrate AI agents and digital tools
New metrics to track trust, performance, and collaboration across human and non-human teams
The truth is, AI will take on repetitive tasks, but only humans can lead with empathy, adapt in ambiguity, and make values-based decisions. So what does this mean for HR leaders? Well, our opportunity isn’t just to manage headcount—it’s to design ecosystems, to leverage AI so we can get out of the weeds and focus on strategic, high-impact work.
That means:
Reskilling teams
Rethinking workflow design
Setting ethical boundaries for AI
And most importantly, changing our mindset
The third workforce isn’t coming. It’s already here. Are you ready to lead it?
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.