Beyond Build-Buy-Borrow: "Blend" Emerges as a Pillar of Workforce Strategy
In the rapidly evolving landscape of enterprise workforce management and planning, a new paradigm is emerging that challenges traditional approaches to talent strategy. While the Build-Buy-Borrow (“BBB”) framework has served organizations well for decades, the rise of sophisticated AI agents is necessitating the addition of a fourth pillar: Blend.
The Evolution of the Workforce and Workforce Strategy
Traditionally, organizations faced with capability gaps had a BBB menu of popular options: Build internal talent through training and development, Buy talent through hiring or acquisition, or Borrow capabilities through contractors and outsourcing. As technology advanced, many organizations added "Bot" as a fourth option, focusing on task automation for routine, standardized work. Now organizations are pursuing AI agents, which will fundamentally transform the workforce and the way we need to plan.
According to KPMG's latest research, 67% of business leaders expect AI to transform their businesses within just two years, with over half of organizations already exploring AI agents for tasks ranging from administrative duties to customer service.
This isn't just speculation – the Wall Street Journal recently reported that companies like Johnson & Johnson are using AI agents in drug discovery, Deutsche Telekom has deployed an AI assistant used by 10,000 employees weekly, and Cosentino has created a "digital workforce" that collaborates with human customer service teams. Yet as organizations rush to embrace this future, they face a critical strategic challenge: how to effectively design, deploy, and manage a workforce that fundamentally blends human and digital capabilities. This goes beyond simple automation or tool adoption – it requires rethinking how work gets done, how roles are defined, and how human and AI capabilities can be optimally combined to create value.
Traditional workforce planning and management approaches weren't designed for this new reality.
The HR technology landscape is shifting to meet this need. In February 2025, Workday announced its Agent System of Record, signaling a major shift in how organizations will manage their digital and human workforce. This platform aims to provide "a centralized system for managing AI agents being used across a company's workforce," highlighting how the traditional boundaries between human and digital workers are blurring.
Even so, organizations need more than a technology platform to effectively manage and govern their total workforce. The emergence of generative AI and sophisticated AI agents has created a fundamentally new approach that transcends the typical BBB menu. This new category – "Blend" – represents a strategic integration of human and AI capabilities that keeps humans firmly in the loop while leveraging the unique strengths of both.
I contend that as AI agents become more sophisticated, Blend will become one of the most talked-about and widely used workforce planning option on the BBB menu.
Why Blend is Different from Bot
While traditional automation (Bot) focuses on replacing human tasks with programmed routines, Blend represents a more sophisticated approach to human-AI collaboration. This distinction is clearly illustrated in Workday's new role-based AI agents, which include capabilities like continuously analyzing contracts across enterprises, managing payroll data, and proactively sharing policy information with employees. These agents, along with those deployed at other companies, don't simply automate tasks – they take on entire functional roles while working alongside humans. Organizations must carefully evaluate several key factors when choosing between Bot and Blend approaches:
Strategic Fit and Value Creation. Bot strategies focus on discrete task automation. Blend approaches create adaptive digital workforces. At Moody's, AI agents operate in a "multi-agent system" where they're given specific instructions and personalities, enabling them to tackle complex tasks like analyzing financial filings and assessing geopolitical risks. At Johnson & Johnson, AI agents collaborate with scientists on drug discovery, demonstrating how Blend can enhance sophisticated knowledge work.
Roles and Capabilities. Bot operates within predefined parameters. Blend enables evolutionary growth in capabilities. eBay's experience shows how AI agents can expand their capabilities over time - from writing code to creating marketing campaigns to eventually helping buyers and sellers interact. As their chief AI officer notes, "As employees interact more with the systems, it also learns their specific preferences."
Human Integration. Bot operates as a tool. Blend functions as a collaborative workforce member. Cosentino exemplifies this approach, treating their AI agents as "digital workers" who "need to come with a set of basic skills" and receive training when they "first arrive on the job." Similarly, Deutsche Telekom's askT serves as an intelligent assistant that helps employees with tasks ranging from policy questions to vacation requests.
Governance Requirements. Bot requires process monitoring. Blend demands comprehensive digital workforce management and governance. As Workday's Agent System of Record demonstrates, organizations need infrastructure to "define roles and responsibilities, track impact, budget and forecast costs, support compliance, and foster continuous improvement." This is particularly critical given Gartner's prediction that 25% of enterprise breaches will be tied to AI agent abuse by 2028.
Understanding these distinctions is crucial as organizations evaluate their BBB menu. KPMG's research indicates that 51% of organizations are exploring AI agents, with planned applications ranging from administrative duties (60%) to call center tasks (54%) and developing new business materials (53%). However, only 12% are currently deploying them, highlighting the thoughtful approach required to move from traditional automation to true human-AI collaboration that distinguishes Blend as a workforce strategy.
The New Reality of Workforce Planning
“In a lot of ways, the IT department of every company is going to be the HR department of AI agents in the future.”
This profound statement underscores a fundamental shift in how organizations must think about workforce strategy, planning, and management. The implications of this shift are far-reaching and necessitate increased coordination between IT and HR departments, implementation of new governance, workforce skill enhancements, and workplace culture change.
HR-IT Convergence: Human Resources and Information Technology departments must work in unprecedented coordination to align on the strategy and management of this blended workforce effectively. Historically, these departments operated in relative isolation, with IT primarily supporting HR's technical needs through payroll systems and HRIS maintenance. This siloed approach, marked by different priorities and communication gaps, will not be viable much longer.
Workforce strategy and AI strategy have the potential to trip over each other if they are not synchronized.
The management of AI agents demands a fundamental restructuring of the HR-IT relationship, requiring deep integration of people management and technical expertise in ways typically unseen in enterprise organizations.
New Governance Frameworks: Organizations need robust systems for managing AI agent deployment, performance, and integration with human teams. This requires a comprehensive governance structure that addresses:
· Agent Lifecycle Management: Processes for deployment, monitoring, updating, and retiring AI agents, similar to traditional employee lifecycle management but adapted for digital workers.
· Performance Standards: Clear metrics and evaluation frameworks for measuring AI agent effectiveness, including both technical performance and successful human collaboration.
· Access and Authorization: Granular controls over what systems, data, and processes AI agents can access, with clear protocols for expanding or restricting permissions.
· Ethical Guidelines: Framework for ensuring AI agents operate within established ethical boundaries and align with organizational values.
· Incident Response: Clear procedures for handling AI agent errors, malfunctions, or unintended consequences, including escalation paths to human oversight.
· Audit and Compliance: Regular review processes to ensure AI agents continue to meet regulatory requirements and organizational standards.
· Change Management: Protocols for managing updates to AI agent capabilities and responsibilities, including impact assessment on human workflows.
Skill Evolution Requirements: As AI agents take on more sophisticated roles, organizations must develop new competencies in their human workforce. This includes technical literacy for working with AI, critical and strategic thinking for determining optimal human-AI collaboration and enhanced interpersonal skills for complex situations that AI cannot handle.
Cultural Transformation: Success with Blend strategies requires fostering a culture where humans and AI agents can effectively collaborate and complement each other's strengths. This means moving beyond simple acceptance of AI tools to actively embracing human-AI partnerships as a core part of organizational capability.
Keeping Humans in the Loop
Perhaps most critically, the Blend approach emphasizes maintaining human oversight and involvement. This necessity is highlighted by early adopters of AI agents - The Wall Street Journal reports that even companies at the forefront of AI agent deployment, like Johnson & Johnson, are proceeding with caution and ensuring systematic human oversight of their AI agents' outputs. This isn't just about risk management – it's about creating truly effective human-AI partnerships that leverage the best of both worlds. This practice is in line with what Ethan Mollick describes in his book Co-Intelligence where recommends we “be the human in the loop.” He writes:
“As AI improves, it will be tempting to delegate everything to it, relying on its efficiency and speed to get the job done. But AI can have some unexpected weaknesses.”
Humans provide context, judgment, and ethical oversight, while AI agents handle data processing, pattern recognition, and routine decision-making.
Looking Ahead
As AI capabilities continue to advance, the Blend strategy will become increasingly crucial for organizational success. Those who master this approach will be best positioned to create workforces that are both highly capable and inherently human-centric. The key to success lies not in viewing AI as a replacement for human workers, but as a powerful tool for augmenting human capabilities. By keeping humans in the loop and focusing on true collaboration rather than replacement, organizations can create more resilient, adaptable, and effective workforces.
The addition of Blend to the traditional Build-Buy-Borrow framework represents more than just a new option – it signals a fundamental shift in how we think about work, workforce planning, and the future of human-AI collaboration in the enterprise.