AI is rewriting the rules of human resources – But will the human touch survive?
View(s):The integration of artificial intelligence into human resource management is seen as one of the biggest workplace changes since digitalisation began. Over the next decade, from 2025 to 2035, AI is set to change how organisations recruit, manage, and develop talent. This will turn HR from a routine support function into a key player in driving business success.
Natural language processing and machine learning are moving HR departments away from rigid systems and toward flexible decision-making. According to a 2023 Deloitte survey, 67% of large companies have started using AI-powered HR tools, and this number is expected to reach 90% by 2030. These systems do more than just analyse data; they interpret context, assess sentiment, and pick up on subtle signals in human communication. For many HR professionals, this change is as significant as the arrival of email.
From guesswork to forecasting – HR has often depended on historical data and human intuition. Now, real-time analytics reveal patterns that the human eye cannot see. Research by Wilson and Chang (2024) found that AI models can predict employee turnover with 85% accuracy up to six months in advance, giving employers a valuable edge in retention strategies. These benefits extend beyond large corporations. Cloud-based AI subscriptions let small and medium-sized enterprises access tools that were once only available to global firms. The Lawrence Institute of Technology forecasts that by 2030, over 60% of SMEs will use enterprise-grade AI HR systems.
AI as strategic adviser – The latest AI technology does not just cut down on paperwork; it provides strategic insights.
n Workforce planning: Algorithms analyse market trends, internal skill gaps, and business needs to create adaptive staffing models.
n Cultural mapping: Sentiment analysis tools give leaders a detailed view of employee engagement and workplace culture.
n Performance management: Real-time tracking replaces annual reviews, offering quicker, more detailed feedback.
n Compliance monitoring: AI can alert users to potential regulatory breaches before they happen, while still respecting privacy rules.
However, there is a concern. A 2024 survey by the Institute for Workplace Ethics found that 73% of HR professionals worry about losing the “human touch” in AI systems. Experts emphasise the need to balance automation with empathy.
A new shape for organisations – AI is also speeding up the move from rigid hierarchies to flexible, project-based teams, a shift driven by remote and hybrid work. Technology is now used to create optimal teams, assign tasks, and monitor collaboration. Success in this area depends on choosing the right tools while ensuring ethical governance and transparency.
Smarter hiring with risks attached – Recruitment has been one of AI’s earliest applications. Current systems use natural language processing to review résumés, cover letters, and even video interviews. Johnson and Lee (2024) state that some tools can assess soft skills, such as emotional intelligence and problem-solving skills, with 78% accuracy. However, algorithmic bias continues to be a significant problem. If AI is trained on biased data, it can mimic discrimination based on gender, age, or ethnicity. Many companies now implement multi-layered bias detection and routine audits to ensure fairness.
Learning that learns back – AI-driven learning platforms customise training content for each employee, predicting, with over 90% accuracy, when someone might drop out of a course. Content is then adjusted in real time to keep learners focused. By connecting with project management tools, these platforms promote the immediate application of new skills. This is crucial since 45% of knowledge is forgotten if not used within a week.
Performance in high definition – Monitoring performance has evolved from annual reviews into predictive optimisation. AI tools now track email response times, meeting engagement, code quality, and team collaboration to identify potential performance dips months in advance. Some systems also monitor well-being indicators, allowing managers to address burnout before it impacts productivity.
Planning for tomorrow’s skills – AI-powered workforce planning tools are also forecasting future skills demand, looking up to 18 months ahead. This advance warning helps companies introduce upskilling programs before skill shortages occur. In some organisations, AI optimisation has reduced costs for contingent labour by as much as 40%.
The big hurdles – Even the most sophisticated AI system brings risks:
n Privacy: With stricter enforcement of General Data Protection Regulations, 65% of employees worry about the monitoring of workplace data.
n Security: Sensitive HR data is a major target for cybercriminals.
n Adoption gaps: Younger employees embrace AI tools, but older workers and middle managers often resist, particularly when AI influences promotions or pay.
Building trust in AI – Experts recommend that companies moving into the AI-HR era should:
1. Establish governance: Define policies, assign oversight roles, ensure compliance, and
create processes for AI-driven decisions.
2. Invest in AI literacy: Train HR teams to understand AI capabilities and limitations and explain AI decisions to
employees clearly.
3. Maintain transparency: Share how AI works, what data it uses, and how recommendations are made.
4. Audit for bias: Continuously monitor decision-making patterns and predictive accuracy across different demographics.
5. Preserve human judgment: Ensure sensitive decisions that require empathy remain in human hands.
Decade ahead – In the next ten years, the HR profession will evolve from simply carrying out tasks to becoming a strategic partner. Emotional intelligence, ethical judgment, and cultural stewardship will be just as essential as data analytics. As researchers Davidson and Lee (2024) express, “The most successful organisations will be those that merge AI capabilities with human expertise.” Ultimately, while AI may handle the data, humans will still add the heart to the process.
The writer is a senior lecturer, Department of Human Resource Management, Faculty of Management Studies at the Rajarata University of Sri Lanka.
- Dr W W A N Sujeewa
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