Why Performance Systems Miss the Gap

What if the biggest divide in your organization is no longer about role, pay, or seniority, but about how people think with AI? In this solo episode of Now to Next, Jason Averbook breaks down a pattern that is accelerating inside companies right now and largely invisible to traditional HR systems. Drawing from fresh labor data, market signals, and real examples from his own work, Jason introduces the idea of the K shaped AI economy where the split is not between jobs, but within them. He explains why two people in the same role can now be operating at radically different levels of impact, why performance systems are failing to detect it, and why AI fluency is no longer about using tools but about changing how work and thinking actually happen. This episode is a direct call to leaders, HR, and talent teams to stop planning for the future of work and start responding to the reality already unfolding.

Highlights:

• Why the AI driven K shaped economy is happening inside roles, not between them
• How AI fluency is creating massive performance gaps within the same teams
• Why performance reviews, engagement surveys, and training programs are missing the signal
• The shift from AI adoption to AI embodiment and what that actually means
• Why curiosity, not access or intelligence, is now the real barrier
• How hiring, interviews, and talent assessment must change in an AI first world
• Why buying more tools without changing mindset creates more risk, not less

Host Bio:

Jason Averbook is a globally recognized thought leader, advisor, and keynote speaker focused on the intersection of AI, human potential, and the future of work. He is the Senior Partner and Global Leader of Digital HR Strategy at Mercer, where he helps the world’s largest organizations reimagine how work gets done — not by simply implementing technology, but by transforming mindsets, skillsets, and cultures to be truly digital. Over the past two decades, Jason has advised hundreds of Fortune 1000 companies, co-founded and led Leapgen, authored two influential books on the evolution of HR and workforce technology, and built a reputation as one of the most forward-thinking voices in the industry. His mission is to challenge leaders to stop seeing digital transformation as an IT project and start embracing it as a human strategy.

Follow Jason Averbook:

Substack: https://substack.com/@jasonaverbook X: https://x.com/jasonaverbook LinkedIn: https://www.linkedin.com/in/jasonaverbook Instagram: https://www.instagram.com/jasonaverbook YouTube: https://www.youtube.com/@nowtonextwithjasonaverbook Facebook: https://facebook.com/jasonaverbook

(0:00) Introduction (0:14) Vibe coding anniversary and labor market split (0:35) SaaSpocalypse, software stock losses, and the K-shaped economy (1:30) AI adoption impact on productivity and performance management (4:07) AI fluency in future hiring and embodiment in the workplace (7:34) Rethinking learning, development, and AI integration in people strategy (10:07) Talent reassessment, early adopters, and upskilling (10:34) Tech adoption versus human transformation (11:22) Recap on the K-shaped economy and final thoughts (12:53) Closing remarks