Insight · September 2026

Everything now hinges on how well people and AI work together

Most teams now use AI. Few leaders know if it is working.

AI use at work has skyrocketed in the last two years. Nearly nine in ten organisations now use AI regularly in at least one part of the business. But only 6% are getting significant value from it, and just 37% see any impact on the bottom line1. So in most teams, the tools are there and people are using them, but few leaders can say whether the work is actually getting better.

9 in 10

organisations use AI regularly in at least one business function

6%

are getting significant value from it

37%

see any impact on the bottom line

McKinsey, The State of AI 2026 · August 2026

Two years ago the question was what AI could do – how good is it really. Now, as the models have improved, the question becomes how we can use AI to the best of its ability and people and AI work side by side. Leaders need to be asking how the human+AI partnership is working and benefitting the organisation, or whether it’s just a claim.

Neither extreme should win

A business that hands the work over to the tools loses out on hard-won human expertise and intuition. Unless a company was founded to be run by AI with one or two human operators, it’s extremely difficult to pivot to a 100% AI operation. The challenge lies in working out what work to hand over to AI, and what work a human expert does.

Two ways to lose, one way to win A line with two losing positions at the ends: handing the work to the tools, or keeping the tools at arm’s length. The winning position is in the middle: human and tool together, with the human responsible for the outcome. Loses Hand it all to the tools Wins Human and tool together The human is responsible for the outcome. Loses Keep the tools at arm’s length
Figure 1Two ways to lose, one way to win.

In a survey of 1,150 US desk workers, 40% said they had received AI-made work in the past month from a colleague that looked fine at first, but had no real substance in it. On average, we lose two hours figuring that out and correcting the work2. This is because AI tools are fast and confident whether or not they’re right, and a person who trusts it inherits that confidence.

AI tools are fast and confident whether or not they’re right, and a person who trusts it inherits that confidence.

But the opposite is also true. A business that keeps the tools at arm’s length also loses. Not thinking about how AI can help means missing out on growth, innovation, efficiency, or all three. And clients now assume AI is being used, so they expect to pay less for work they think a machine did. A business that cannot show what its people add has no answer to that.

That leaves one winning position: human and tool together, with the human responsible for the outcome.

Case study

Recruitment

The recruitment sector is a good example at the moment because the job depends on human judgement, and because the pressure has come from many angles all at once. They were quick to adopt automation for screening job applicants against the job criteria, but the EU AI Act now means the sector has to be extremely careful how they use AI when it comes to making decisions that could affect people’s lives and livelihoods.

The sector is experiencing other pressures like:

  • Fees

    Clients are using AI as the reason to push fees from 15% towards 10%3.

  • Clients

    Some hiring managers are asking recruitment agencies for interview notes and a human’s assessment instead of a shortlist.

  • Candidates

    Three in ten UK job seekers have walked away from a hiring process because it used an AI interview4.

  • The law

    Since 5th February 2026, UK law says a candidate must be told when a machine alone makes a big decision about them, such as rejecting them. They must be able to challenge it, and to get a person to look at it5.

In response to these pressures, five UK recruitment agencies (Prospectus, Carrington West, Aligra, Staff One and Harvey John) have published policies on how they use AI6, 7, 8. The policies generally say: AI helps, but the human consultant decides. This is an interesting signal because it’s highly likely that as regulation becomes more widespread and more enforced, every sector will have to be transparent and say where the human sits inside their processes.

The law is asking every sector the same question

The EU AI Act affects any business operating in Europe, not just recruiters. Since February 2025, any organisation using AI in the EU has had to take steps to build AI literacy among its staff, in proportion to each person’s role. That includes UK firms whose AI work reaches EU clients. Since 2 August 2026, national regulators have been able to enforce it, and each country sets its own fines9. The stricter rules for high-risk uses, such as hiring, credit and education, have been pushed back to December 202710. So for now the weight of the law falls on people, not systems. But the question is coming: can you show that your staff know how to work with AI?

For now the weight of the law falls on people, not systems A timeline. February 2025: the EU AI Act literacy duty applies. February 2026: UK rights over machine decisions. August 2026, marked now: EU regulators can enforce the literacy duty. A dotted line continues to December 2027, when strict high-risk rules apply. Feb 2025 EU AI Act literacy duty applies Feb 2026 UK: rights over machine decisions Aug 2026 Now EU regulators can enforce it Dec 2027 strict high-risk rules apply
Figure 2For now the weight of the law falls on people, not systems.

Two things matter here. Literacy is knowing when to trust the tool and when to check it. Capability is doing better work with it. Neither is learned in a training room. Recruitment as a sector is not special here, but as an example, recruitment consultants learn on the job, with real candidates and real consequences, like most people in most jobs. AI literacy is learned the same way – working with it on live work to see not only what it can do, but how it works in a live environment alongside teams. After all, uses for AI are discovered, not invented.

Asking better questions about AI at work

A successful human+AI workflow means someone can exercise discernment and look at any piece of work and say what the tool did, what they checked, what they changed and why. Put simply, it’s what it looks like when someone uses AI well.

The question that tests a human+AI workflow Four boxes joined in a line. Of any piece of work, can the person say what the tool did, what they checked, what they changed, and why. The last box is filled blue. Of any piece of work, can the person say… what the tool did what they checked what they changed and why
Figure 3The question that tests a human+AI workflow.

We’ve been using examples from the recruitment industry to think through this perspective, but swap the recruitment consultant for a lawyer, a marketer, an analyst or a teacher. The question is the same. It’s much more important for a leadership team to know how many people can answer that question about their own work than how many are using the tools.

How to know where you stand

Public promises and policies – and the PR that goes with them – don’t prove anything. Everyone has only just started to work out what their work life looks like with AI. Uses for AI are still being discovered, so the best thing to do if you lead a team is to find out where everyone is first, then make an action plan. Because AI moves so fast, it’s best to start somewhere and adjust as you go, rather than wait for a perfect decision.

In any organisation that has had the tools for a while, the human+AI partnership already exists in pockets: people who have worked out what the tool is good at and quietly built their work around it. The first job is to find them and know what they’re doing.

MakeSense Assess

We do this with MakeSense Assess, a two-week review of how a team really works with AI. Everyone taking part gets their own report and action plan. The team leader gets a report on the whole team: where the partnership is already working, what is getting in the way, and what to fix first. Then a two-hour session with the leadership team turns that into a written list of actions, owners and decisions. It costs £10,000 plus VAT. The first step is a free 20-minute call, which you can book here.

Book a free 20-minute call →

Assess is the first stage of MakeSense, the platform we built to gather evidence of how teams use AI and turn it into a plan. If you want more, MakeSense carries on after the assessment: teaching the skills it found missing, checking whether the work gets better, and making what worked part of how the organisation runs. The assessment stands on its own, even if you don’t continue past it.

Sources

  1. 1McKinsey – The State of AI in 2026, August 2026 – mckinsey.com
  2. 2BetterUp Labs and Stanford Social Media Lab – Workslop: the hidden cost of AI-generated busywork (1,150 US desk workers, September 2025) – betterup.com
  3. 3Wave – Talent Matters podcast, episode 310 (March 2025) – wave-rs.co.uk
  4. 4Greenhouse – 2026 Candidate AI Interview Report (2,950 UK job seekers), reported by HR Grapevine, May 2026 – hrgrapevine.com
  5. 5Data (Use and Access) Act 2025, section 80, inserting Articles 22A to 22D into UK GDPR, in force 5 February 2026 – legislation.gov.uk
  6. 6Prospectus – AI in recruitment: what candidates need to know (June 2025) – prospect-us.co.uk
  7. 7Carrington West – Our AI principles – carringtonwest.com
  8. 8Recruitment and Employment Confederation – Using AI in the recruitment sector, with member stories from Aligra, Staff One and Harvey John – rec.uk.com
  9. 9EU AI Act, Article 4 (AI literacy), applying from 2 February 2025, with national enforcement powers from 2 August 2026 – artificialintelligenceact.eu
  10. 10White & Case – EU AI Omnibus enters into force, amending the AI Act (in force 27 July 2026; high-risk obligations for hiring, credit and education systems deferred to 2 December 2027) – whitecase.com