In the ever-changing landscape of human resources, Artificial Intelligence (AI) is making waves. While AI's influence has been expanding across industries for some time, it's now beginning to significantly impact HR functions. AI can already automate a substantial portion—up to 75%—of typical HR tasks, including recruiting, onboarding, performance management, and employee support. But what does this mean for the future of HR roles? Could replacing HR professionals with AI-driven systems become a growing trend?
The Rise of AI in HR
AI-driven automation is accelerating in the HR sector, and many companies are already piloting or expanding the use of AI-powered chatbots, analytics, and workflow automation to manage routine HR tasks. These tools are designed to streamline the administrative burden on HR professionals, freeing them up to focus on more complex, strategic work that requires human judgment and expertise.
Some industry experts are sounding alarms, suggesting that HR, like other business functions, may face an identity crisis if it doesn't adapt quickly enough to the advancements in AI technology. Organizations that fail to embrace these changes risk reducing their workforce, as AI systems become increasingly capable and cost-effective.
Examples of HR Automation in Action
Recent developments from companies like IBM and Moderna highlight the growing trend of automating HR functions with AI. These companies are leading the charge in reshaping the way HR operates, using AI to reduce repetitive tasks and improve operational efficiency.
- IBM: In a bold move, IBM replaced around 200 HR roles with AI agents as part of a broader initiative to automate internal processes and minimize manual HR work. Despite this reduction in HR staff, IBM’s overall workforce grew, reallocating resources to areas where human skills, such as problem-solving and interpersonal abilities, are essential.
- Moderna: Moderna’s integration of AI into HR took things a step further. Partnering with OpenAI, Moderna developed over 3,000 custom generative AI tools (GPTs) that streamline processes like onboarding, document preparation, and employee support. By integrating these tools, Moderna cut 10% of its digital technology workforce, emphasizing that this move was about reimagining roles, not simply cost-cutting.
- Unilever and Electrolux: Other major companies, like Unilever, use AI to analyze employee surveys, predict turnover, and increase hiring efficiency. Electrolux has digitized its recruiting process with AI, reporting significant improvements in candidate experience and operational efficiency.
These shifts signal that AI's role in HR is evolving. Rather than replacing human workers entirely, AI is taking over repetitive tasks, allowing HR professionals to focus on higher-value work, such as employee engagement, strategy development, and leadership.
What This Means for the Future of HR
As the use of AI in HR continues to expand, it's clear that AI will play a significant role in shaping the future of HR operations. Companies are increasingly realizing that automation can make their HR processes more efficient, allowing human workers to focus on tasks that require empathy, leadership, and creativity.
AI is not replacing HR entirely—it's enhancing the value HR teams bring to organizations. By automating routine tasks, HR professionals can spend more time fostering company culture, supporting employee development, and driving business strategy.
Will This Trend Continue?
With companies like IBM, Moderna, Unilever, and Electrolux leading the way, it’s likely that AI-driven HR automation will continue to rise. As AI becomes more advanced and cost-effective, we can expect even more companies to adopt these tools to remain competitive and agile. HR departments will need to evolve, using AI as a strategic asset while focusing on human-centered practices that machines can’t replicate.
For companies already using AI, the future is about finding the right balance between human talent and technological innovation. By leveraging AI for routine tasks, organizations can improve operational efficiency and remain prepared for future challenges. The key will be ensuring that automation complements human skills, rather than replacing them entirely.
Ready to Adapt Your HR Strategy?
If you're considering how AI can impact your organization, it’s important to develop an HR strategy that embraces technology while also prioritizing human interaction, empathy, and leadership. Next Level Benefits offers strategic HR consulting services to guide you through the process and ensure you're ready for the future of HR. Contact us today to see how we can help your team navigate this shift.
