The HR skill that will define 2026, and how AI can support it

Storytelling bridges data and human experience. In an era where AI is more powerful and accessible than ever, this capability matters more – not less, writes Dr Natalie Cummins.

Imagine working on a high-pressure change project, designing a new performance management and risk framework in just 72 hours, in extreme heat in Darwin, the Northern Territory. My multidisciplinary team and I faced this challenge a few years ago.

Today, as AI reshapes how work is designed, measured, and communicated – and HR leaders are expected to make faster, higher-stakes decisions with imperfect information – these pressure-cooker moments are becoming the norm.

To be honest, given the looming deadline and intensity, I was terrified. Sweat poured, deadlines loomed, and high-stakes presentations to steering committees awaited each morning. Yet despite the pressure, the team thrived. Everyone contributed their expertise, supported one another, and communicated clearly under stress. By the end of the week, the systems were complete – robust, operational, and ready for implementation.

What made this possible wasn’t just technical skill. It was storytelling.

We translated complex processes, policies, and risk assessments into language that decision-makers could understand and act on. When we presented to steering committees, we didn’t just show frameworks; we revealed the stories behind them. Even under extreme pressure, strong leadership and connected teams can achieve extraordinary outcomes when communication is persuasive, meaningful, and human.

Today, with the advantage of AI, this kind of storytelling is even more possible under extreme conditions. AI helps HR leaders capture, refine, and pressure-test stories – bringing the human experience back into systems, processes, and policies that might otherwise feel abstract or impersonal while still requiring leaders to pause, question, and apply human judgement.

Why storytelling matters for HR leaders in 2026

Storytelling is no longer optional in HR. It is a core leadership capability.

A storytelling and leadership workshop I attended in Germany reinforced a simple but powerful idea. The facilitator repeatedly cited a phrase that resonated deeply:

“The shortest distance between two people is a story.”

For HR leaders, this is more than a slogan. It is a reminder that influence, connection, and alignment are built through shared meaning – not data, emails, or reports.

Putting stories to work

Stories make abstract HR frameworks tangible.

For example, during the design of a new triage and risk management framework for homeless services, a multidisciplinary team encountered strong resistance. While the framework was grounded in sound evidence and risk logic, it was perceived as too time-consuming and operationally burdensome.

An HR leader shifted the conversation by telling a single, grounded story: a woman and her children who were turned away due to unclear triage processes, only to be assaulted after sleeping in the park across the street that night. The story did not replace the framework or the data; it revealed what was at stake if no action was taken. The steering committee could suddenly see the human consequences the framework was designed to prevent. The outcome was decisive: the framework was endorsed and implemented.

This example illustrates a broader leadership challenge. Data and frameworks alone rarely compel action. Stories help people make sense of complexity, align around shared purpose, and act with clarity – especially when change, risk, or ambiguity is high, the context in which HR is operating in 2026.

Just as the Darwin experience shows how teams can thrive under pressure when they share a clear purpose, HR leaders can use stories to connect leadership decisions to lived human experience.

Practical insights for HR leaders: Partnering with AI

Storytelling strengthens inclusion, empathy, culture, change efforts, engagement, and leadership development. In 2026, the most effective HR leaders use AI to synthesise raw data while relying on their own judgement and voice to provide the meaning.

1. Purpose-driven stories: The ‘North Star’ prompt

Every story must have a clear insight or lesson.

AI support: Use an AI co-pilot to analyse strategic priorities and identify the human behaviours required for success, then shape your story accordingly. AI can help to clearly articulate the purpose in ways that inspire.

2. Stories of challenge and failure: Surfacing the ‘authenticity gap’

Real obstacles make the case for change credible. Sharing stories of failure is powerful. The power of sharing failure lies in the twist – when what you expected did not happen. Explaining that gap, and what changed as a result, transforms failure into a source of learning, credibility, and sound judgement rather than embarrassment or blame.

AI support: Analyse anonymised feedback or project reviews to identify recurring tension points worth addressing through stories. Failure is okay and a powerful story to learn from.

3. Modelling culture through stories: ‘Culture in the wild’

Values are reinforced through examples, not slogans.

AI support: Scan recognition platforms or internal communications to identify moments where values are lived, then turn these into stories.

4. Weaving data into stories: The ‘so what?’ layer

Numbers matter, but they rarely move people to action on their own.

AI support: Use AI tools to research or find the numbers and summarise complex reports in plain language, then add the human context that explains why the numbers matter. Always check the source. Pause, use critical thinking, and sense check.

5. Personal and professional stories: The human interface

Stories may be personal or professional, but they must connect to action. Leaders can move between stories of success, challenge, and tragedy to build perspective and trust.

AI support: Pressure-test clarity and structure with AI, while leaders provide judgement, emotion, and authenticity.

6. Open and close with impact: The ‘hook and anchor’ technique

Strong openings capture attention; strong endings ensure the message sticks.

AI support: Test alternative openings and closings for different audiences while keeping the core message human.

7. Radical authenticity and ethics: The human guardrail

In an era of deepfakes and AI-generated content, the most valuable currency is authenticity.

AI support: Use AI to check drafted stories for subtle bias or non-inclusive language. However, never use AI to fabricate a story. The power of storytelling in 2026 lies in the audience’s belief that the leader has lived or witnessed the experience they are sharing.

Storytelling, in other words, is how HR leaders enable culture and translate strategy into action, and policy into purpose. When working with AI, this storytelling discipline also requires a pause – a deliberate moment to question what AI produces, validate sources, and ensure judgement, ethics and human responsibility remain firmly with the leader.

Why this skill is urgent in 2026, and the way forward

HR is evolving faster than ever. HR leaders are now expected to drive growth, innovation, and organisational agility; not just manage systems, but shape how people connect, adapt, and contribute.

Returning to the Darwin story, the lesson is clear. Even under intense pressure, teams with strong leadership, shared purpose, and effective communication through storytelling can achieve extraordinary outcomes.

Storytelling bridges data and human experience. In an era where AI is more powerful and accessible than ever, this capability matters more – not less. In 2026, HR leaders who combine human storytelling with AI-enabled insight will be the ones who ensure people are seen, heard, and mobilised.

Dr Natalie Cummins is a lecturer at the University of Technology Sydney (UTS) Business School.