Dynamic capabilities theory and human capital theory: building an AI-ready workforce for the future of work

Purpose Artificial intelligence (AI) is changing how organizations operate, make decisions and manage talent. While many organizations are investing heavily in AI technologies, workforce readiness remains a major challenge. This study aims to explore how Dynamic Capabilities Theory and Human Capital Theory can help organizations build an AI-ready workforce capable of thriving in the future of work. Design/methodology/approach This conceptual study integrates insights from Dynamic Capabilities Theory, Human Capital Theory and emerging AI workforce literature to develop a practical framework for workforce readiness. Findings This study proposes that AI readiness is achieved when organizations combine adaptive organizational capabilities with continuous investments in employee development. Five key drivers are identified: AI literacy, continuous learning, workforce adaptability, future-focused talent management and leadership support. Originality/value This study bridges Dynamic Capabilities Theory and Human Capital Theory to explain workforce readiness in AI-enabled organizations and presents a practical roadmap for HR leaders navigating technological transformation.