What Leaders Need To Know About AI

The PFunc Pulse–Issue #29.

March 24, 2026

MESSAGE FROM OUR CEO’S DESK

Hello from the neon glow of Las Vegas!

Diane Sadowski-Joseph (my dear friend and Co-Founder/Chief Product Officer of Clarinet) and I are currently on the ground at Transform 2026, surrounded by thousands of people trying to figure out the "Human + AI Equation." If I’m being honest, a lot of what we’re hearing in the hallways is just more of the same corporate fluff, vague promises about efficiency that ignore the humans doing the work.

We sat down to talk about what’s actually happening in the trenches, and the takeaway was clear: most leaders are failing at AI because they are treating it like a magic wand instead of a specialized tool. Here’s our take:

1. AI Doesn’t Fix Broken Workflows

We see it constantly. A leader has a messy, manual process, so they bolt on an AI tool and wonder why it’s still a mess. As Diane says, "AI does not fix broken workflows." If your process is a disaster, AI just helps you create disaster faster. Stop asking, "Which tool should we buy?" and start asking, "Now that these tools exist, how should this process work from scratch?"

2. Beware of "Shiny Object" Whiplash

We’re watching leadership teams waste hours watching demos of the latest product or niche beta tools. It’s a distraction. You don’t need your execs to be tool trivia experts: you need them to have Judgment Literacy. Think of it like finance - a CEO doesn’t need to be a CFO, but they need to understand EBITDA. You need enough AI literacy to know when a headline is hype and when it’s a meaningful shift.

3. “The iPhone Rule”

Stop waiting for the “perfect” autonomous agent to be released. There are leaders with backlogs of AI projects on pause because they’re waiting for the next version of ChatGPT. Meanwhile, their people are still acting like "copy-paste machines." Diane’s advice? Just get the iPhone that’s out today. Yes, tomorrow’ iPhone will be marginally better, but today’s will still get the job done and solve your current business problem. Use it, learn where it breaks, and upgrade with purpose later.

4. Simplify ROI Measurement (At First)

Everyone is obsessed with the spreadsheet, but the ROI of AI shows up qualitatively before it shows up quantitatively. You’ll feel it when a task becomes less soul-sucking. If a $25/month license saves an employee just one hour a month, it has already paid for itself. Stop over-engineering the math and start looking for where the friction is actually disappearing.

The goal isn't to turn every employee into an AI super-user. It’s to foster an environment where people say: "Here is a problem I had, and here is how I’m solving it with AI. What do you think?"

Stay bold! And if you’re in Vegas and want to chat more about AI and new tools on the market, join us at our Expo Hall Crawl on Wednesday. RSVP via Luma here!

–Emma (CEO & Founder of People Function) & Diane (CPO & Co-Founder of Clarinet)

Your go-to HR newsletter being read by nearly 2,100 leaders.
Subscribe today.

ASK THE EXPERTS 🧠

Question: Our company has received twice as many applications for our summer internships than we usually do for open roles. However, our first-round interview success rate is 0%. Why is the funnel so broken right now, and how can we filter for quality without it becoming a full-time job?

The "broken" funnel is likely caused by:

  • A 15% reduction in internship opportunities has created a desperate market, prompting "spray-and-pray" application behavior. 

  • AI platforms send out hundreds of applications in one go, burying recruiters in noise. 

    • These AI-generated resumes make it through initial hoops but lead to a lackluster first-round interview, resulting in a 0% interview success rate. 

To filter more effectively:

  • Add micro-tasks to your job description, like requiring a specific keyword or a two-sentence product critique, to curb bot-generated applications.

  • Leverage tools to automate personalized rejections, allowing you to treat applicants like humans without letting manual correspondence take over your life.

Have an HR- or operations-related question? Submit it here to see it answered in an upcoming issue!

THE AI BRIEFING 🗞️

What’s happening in AI and why it matters for HR.

A bill proposing a mandatory 90-day notice for AI-driven layoffs is making its way through Minnesota.

  • ↪️ PFunc’s Perspective: We hope this law will make leaders think twice before blaming AI for their layoff, but it likely won’t have a big impact.

$4.5 trillion in human labor is projected to shift to machines as 93% of U.S. jobs are estimated to become vulnerable to AI.

  • ↪️ PFunc’s Perspective: This is a re-skilling crisis rather than a replacement event. Historical adoption patterns suggest that human-centric roles, specifically those requiring high emotional intelligence, are far more resilient. The true economic shift isn't the removal of the human, but the radical redesign of the work they do.

Another story we think you might like.

  • Morningstar: AI training jobs increased by 283% in 2025, making it the fastest-growing market.

COMPLIANCE CHECK

Stay ahead of HR compliance as these latest updates take effect.

  • Federal (effective 4/15/26) - All employers and group health plan sponsors must file Form 8928 to self-report compliance failures in their health plan administration.

  • New York City (effective 4/18/26) - Employers cannot request or use applicants’ credit history to make hiring decisions. 

  • Federal (effective 4/25/26) - The Department of Labor is collecting public comments on proposed updates to what classifies an independent contractor vs. an employee.

Subscribe to The PFunc Pulse to stay ahead of the curve with the latest HR tips, trends, talent on the market, open jobs, and hot topics.

Be the first to know about openings in our network by joining our Talent Network.

THE OPPORTUNITY EXCHANGE 📈

ROLES ON OUR RADAR

The PFunc job board is packed with open roles across our client companies, making it easier than ever to tap into our network.

This week, we’re highlighting the newest open roles and one from our all-star recruiting team.

See a role you’re interested in? Reply to this email and we’ll try to connect you with the hiring team. Hiring for an open role yourself? Reply to have your job featured in an upcoming PFunc Pulse issue.

RECOMMENDED RESOURCE💡

Check out this resource for HR leaders, CEOs, and founders like you, vetted and recommended by us!

BrightHire - This AI-powered interview platform automates workflows while providing data-driven decision-making.

WHERE TO NEXT?

Our team is always on the move, popping up at the HR events, conferences, and summits we actually love.

MARCH

APRIL

CHRONICALLY ONLINE📱

For your enjoyment, the PFunc team shows off their impeccable listening skills 🤣

Instagram Post

Join 100,000+ followers across PFunc’s Instagram, TikTok, and LinkedIn, hailed as “one of the best HR accounts online today.” 😉

STAY IN TOUCH 💌

If you’re interested in fractional HR support for your team, reply to this email or contact us to learn more about our offerings, pricing, and how we can support your growing company.

Join the Talent Network here (it’s free!). Whether you’re actively exploring new opportunities or happily employed but open to the right fit, becoming part of our network boosts your profile when roles align with your experience, skills, and career goals.💡

🗣️ Thoughts, feedback, requests? Let us know! 🗣️

Want HR updates to your mailbox every week? Subscribe to PFunc Pulse and join 2,000+ startups and people leaders in our growing community.

Every Tuesday, the PFunc Pulse delivers the HR news and compliance shifts you actually need, without all the corporate fluff. Emma brings her unfiltered take on the trends keeping CEOs awake at night, served with the gritty, practical wisdom of a founder who’s seen it all. Real talk for better people decisions, week by week. (P.S. Do your work bestie a favor and forward this— friends don't let friends do old school HR. 🫢)