Human capital: Your new competitive advantage in the GenAI era

Generative AI (GenAI) is making waves across nearly every enterprise function. While it’s still early, many believe GenAI can do everything humans can — which is far from accurate. This misconception drives fear among employees who worry they may be replaced at any moment. In some companies, that might be true.

However, exceptional leaders will look for opportunities to grow by redeploying their people, not replacing them. As GenAI becomes more accessible, the competitive edge it once promised is now available to all. Companies must look elsewhere for differentiation. For some, that edge is data; for others, strategy. Yet many are beginning to see that human capital — employees and their uniquely human skills, knowledge and experience — can be the true differentiator.

GenAI excels at generating content quickly but lacks contextual understanding and human insight. Successful companies will recognize this difference and plan accordingly, blending technology and their workers to maximize both. Let's explore the value and opportunities of using employees as a competitive advantage.

Many leaders claim “Our people are our secret sauce” or “Our team is the difference maker,” but GenAI will put these statements to the test. In the pre-GenAI world, enterprises often began with capacity — “How many people are needed?” — then moved on to capability — “Who has the skills to do this job?” In the GenAI era, leaders can start with capability, focusing on human cognitive abilities and working with GenAI to amplify human skills. The idea that “GenAI-enabled people, not GenAI itself, will drive success” has never been truer.

To harness employees as a competitive advantage, start by reframing the balance between humans and machines. Ask, “What areas of our business need the most help?” then “Where can workers make an impact in business that GenAI cannot?”

1. What human traits can’t AI replicate? What innate qualities set us apart?
These include creativity, relationship building, nuance, subtlety and nonlinear thinking.

2. Which aspects of my business could use more humanity?
Most businesses benefit from more humanity in relationship-driven areas like sales, services and partnerships, sensitive communications and creative, nonlinear roles such as art directors or creative directors.

Consider the airline industry. Airlines continuously streamline operations to improve efficiency, but a great flight attendant can turn a potentially negative experience into a positive one. That value lies in the human touch — warmth, understanding and empathy that technology alone can’t replicate.

3. What investment does my team need to get the most value out of employees?
Like any asset, workers need investment to grow, especially in an era of rapid and monumental change. Three areas will help make employees your differentiator:

4. How do I apply this thinking?
Think about how you’d use any other asset: if you have unique data or a distinct strategy, you exploit it for a competitive advantage. An example is Amazon, which turned its customer shopping data into a multi-billion-dollar programmatic ad business. With employees, the goal is to empower, not exploit. You’ll focus on fostering, inspiring and guiding your team — prioritizing capability over capacity and aligning with meaningful, human-centred goals.

A great example is DBS Bank. Its strategy goes beyond efficiency with the mission of “Making Banking Joyful.” DBS views GenAI as a co-pilot that reduces busywork so its people can deliver unmatched customer outcomes.

“This human-centred approach to AI integration ensures that technology serves to amplify rather than diminish the human touch in our customer interactions”, said Chief Data and Transformation Officer Nimish Panchmatia in an interview earlier this year.

Democratizing technology without differentiation can lead to stagnation. GenAI brings both risks and opportunities, one of which is prompting a fresh look at a long-underestimated resource: employees. In a GenAI world, human traits that machines cannot replace will help build trust in technology and set your organization apart.

Your competitive advantage will come from how you:

Rather than simply saving costs from GenAI’s productivity gains, reinvest that capital in your people. This isn’t just about maintaining your workforce — it’s the foundation for sustainable growth in the GenAI era.