Beyond skills: rethinking human capital in AI-driven organizations in emerging economies

Abstract

The rapid integration of artificial intelligence (AI) into organizational processes is reshaping work practices and redefining the development of human capabilities. Although human capital is widely recognized as a key driver of organizational performance, existing research primarily emphasizes reskilling and upskilling while treating human capital as a stable, accumulative asset. This study examines how human capital development is adapted and how human capital itself is reconceptualized within AI-driven organizations in an emerging economy. Using a qualitative multiple-case study design, data were collected through semi-structured interviews with 37 participants from three Indonesian organizations in the education, finance, and digital service sectors. The findings indicate that workforce transformation extends beyond skills acquisition to encompass continuous adaptation, human–AI collaboration, and evolving organizational practices. Human capital development emerges as a dynamic process shaped by technological change, organizational tensions, and actor interactions, while human capital is increasingly understood as an adaptive, relational, and evolving construct. Based on these findings, the study proposes the concept of Adaptive Human Capital, extending Human Capital Theory by conceptualizing human capability as context-dependent and continuously evolving. The findings also provide practical insights for designing adaptive human resource development strategies in AI-driven organizations, particularly in emerging economies.

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