AI in HR: Shaping the Present and Preparing for the Future

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AI in HR: Shaping the Present and Preparing for the Future

Following the insights from Routes to the Top Of HR report that was released earlier this year, I have put together this more in-depth piece on how artificial intelligence is transforming HR. This blog expands on some of the individual insights from HR leaders, particularly from free-text responses that couldn’t all be shown in the report. While AI is making strides in areas like recruitment, onboarding, and engagement, HR leaders are clear that human oversight and empathy remain central to effective people management. Here, I explore which HR duties AI is enhancing or replacing, its immediate benefits, and the challenges that need careful consideration as AI takes on a larger role.

Key HR Duties Enhanced or Replaced by AI

As highlighted in the report, AI is increasingly taking over routine, repetitive tasks, allowing HR professionals to focus more on strategic and relationship-driven aspects of their roles. Here are some of the key areas AI is transforming:

  1. Recruitment and Candidate Screening
    AI-powered applicant tracking systems (ATS) are helping HR teams screen CVs, filter candidates, and predict job performance based on historical data. According to Routes to the Top, HR leaders value AI’s efficiency in the early stages of candidate selection, as it speeds up recruitment without sacrificing quality. However, they also stress the importance of retaining human judgement in final decisions to ensure alignment with organisational culture and values.
  2. Onboarding
    In some larger organisations and those that are embracing technology, AI-driven virtual assistants and chatbots are being used to streamline the onboarding process, guiding new hires through company policies, paperwork, and training materials. As noted in Routes to the Top, HR leaders expect AI to increasingly handle routine onboarding queries, freeing up HR staff to focus on establishing genuine connections with new hires—a key part of building a strong workplace culture from day one.
  3. Employee Engagement and Retention
    AI tools that track employee engagement through sentiment analysis can provide HR teams with real-time insights into morale and potential turnover risks. Leaders in the report emphasise that while AI can flag engagement issues early, it’s the human response that ultimately retains employees. Proactive engagement, driven by both data and empathy, is seen as crucial for employee satisfaction and retention.
  4. Learning and Development (L&D)
    AI-powered learning platforms are helping organisations personalise employee training programmes based on individual skill gaps and career goals. HR leaders see great potential in using AI to deliver tailored development opportunities, as this personalised approach can drive engagement and build a more agile workforce. Routes to the Top underscores the importance of personalisation in L&D as a growing expectation among employees.
  5. Payroll and Benefits Administration
    AI’s ability to handle payroll and benefits administration reduces the risk of errors and ensures compliance with regulatory standards. Automated systems free HR staff from routine administrative tasks, allowing them to focus on initiatives that directly support employee experience and organisational goals.

Positives of AI in HR

The Routes to the Top report reflects several of the benefits that AI offers to HR functions:

  1. Efficiency and Time Savings
    By automating repetitive tasks, AI gives HR professionals more time to focus on high-value activities, such as strategic planning and relationship building. As the report notes, automated recruitment and onboarding processes improve response times and enhance the candidate experience, positioning companies as responsive and modern employers.
  2. Data-Driven Decision Making
    AI-driven insights allow HR to make informed decisions based on real-time data. The predictive power of AI can help HR teams identify trends, such as turnover risks, and respond before they become issues. According to Routes to the Top, this ability to act proactively supports a more stable and engaged workforce, which is critical in today’s competitive talent landscape.
  3. Enhanced Candidate and Employee Experience
    With AI-driven chatbots available to respond to candidate and employee questions instantly, HR can provide a smoother experience, from application to daily workplace queries. By enhancing responsiveness, AI helps organisations build strong employer brands, which leaders in the report recognise as increasingly important for attracting and retaining top talent.
  4. Reduced Bias in Hiring
    AI tools that focus on objective criteria can help reduce unconscious bias in recruitment. However, as HR leaders in Routes to the Top caution, AI is not a silver bullet; consistent oversight is required to ensure AI-driven recruitment promotes diversity and inclusivity.

Negatives of AI in HR

Despite AI’s potential, the Routes to the Top report also highlights potential drawbacks that HR leaders must carefully manage:

  1. Risk of Bias and Ethical Concerns
    AI can perpetuate existing biases if its algorithms are trained on biased data. HR leaders stress the importance of monitoring AI to prevent unintentional discrimination. Regular audits of AI tools and transparency in AI-driven decisions are essential to maintain fairness and inclusivity in hiring.
  2. Loss of the Human Touch
    Heavy reliance on AI for tasks like recruitment and employee engagement can make HR feel impersonal. HR leaders in Routes to the Top note that while AI improves efficiency, it’s vital for HR teams to maintain a personal connection with employees. An over-reliance on AI can lead to disengagement, as employees value human interaction, empathy, and understanding in their workplace relationships.
  3. Privacy and Security Issues
    AI tools often require access to sensitive employee data, raising concerns about privacy and security. As the report highlights, HR leaders must prioritise data protection to maintain trust across the organisation, especially with an increasing frequency of data breaches.
  4. Dependency on Technology
    As organisations integrate AI into HR, there’s a risk that teams may lose certain skills, particularly those requiring judgement and interpersonal sensitivity. HR leaders in Routes to the Top highlight the need for training that enables HR professionals to use AI effectively while still developing their core human skills.

Future Outlook

According to Routes to the Top, HR leaders anticipate that AI’s role will continue to grow, particularly in areas that benefit from data analysis and process automation. However, they also recognise that AI must support—not replace—the core human functions of HR. The future success of AI in HR lies in its ability to handle data-driven tasks while empowering HR professionals to make thoughtful, people-centred decisions.

By implementing AI thoughtfully and ensuring alignment with organisational values, HR teams can harness AI’s potential to build an agile, future-ready workforce. As the Routes to the Top report makes clear, organisations that balance technological innovation with empathy and human oversight are most likely to succeed.

AI is a powerful tool that, when implemented strategically, enhances HR efficiency and insights. However, as HR leaders emphasise, its use must be balanced with a human-centred approach to maintain trust, engagement, and fairness in the workplace. By approaching AI as a complementary tool rather than a replacement, HR teams can ensure they are prepared for a future where both technology and humanity are key drivers of organisational success.

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