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The World Economic Forum's inaugural Chief People Officers Outlook report ranks business acumen as the most critical capability for HR leaders in 2025.
The survey showed 100% of people leaders listed business acumen and strategic thinking among their top three success factors, with nearly 90% placing it as their single highest priority. The data is set against a background of companies restructuring jobs, culture and operations while embedding artificial intelligence (AI) into the workforce.
From sidelines to strategic driver
in the report, Kelly Jones, Chief People Officer of Cisco, warned: “Without strong business acumen, we risk becoming a support function on the sidelines.”
She argued that HR must “speak the language of revenue, cost structures, customer expectations and workforce capabilities” as AI reshapes value chains and operating models.
“Great HR leaders aren’t just ‘people experts,’ they are business leaders who happen to specialize in people,” she said, adding that embedding within business units, from product sessions to customer meetings, makes HR advice “a true strategic driver, shaping outcomes, influencing direction and leading change that delivers real results.”
Cross-functional paths to growth
Shaji Mathew, Chief Human Resources Officer, Infosys, said the role now hinges on aligning talent with business needs: “Bringing business acumen into HR enables us to be true partners to the business - shaping workforce strategies that engage and empower employees while strengthening client outcomes and shareholder value.”
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He pointed to financial literacy, market knowledge and especially cross-functional projects as routes to strengthen that skill set.
Randstad’s Chief Human Resources Officer, Myriam Beatove, echoed it, saying: “To strengthen business acumen, HR leaders should actively seek out cross-functional experiences.” She said such roles offer a broader view of the business, credibility and a systems-thinking perspective that allow HR leaders to “effectively advise on key business topics.”
AI and enterprise mindset
The report emphasized that AI in learning and development “is no longer an elective offering but a foundational component of any future-ready learning strategy.” Business acumen is described as the anchor that ensures AI initiatives “are innovative and grounded in business realities.”
“Business and AI acumen together are transformative,” the report said, calling for mutual learning so that “business professionals must understand AI and AI professionals must grasp business fundamentals.”
By linking these disciplines, organizations can reduce resistance and enhance the impact of AI, while HR leaders evolve into “dot connectors” and change agents.
Ultimately, the report positioned business acumen as “a foundational competency for sustainable growth, innovation and strategic L&D leadership.”
As one chief people officer concluded: “You can’t separate people and business anymore.”
