As AI transforms organisations, HR leaders reinvent their roles by moving from being operational specialists to becoming strategic partners.
Human resources leaders are at the heart of what we refer to as “the AI capabilities gap” today. They must manage workforce adoption, and also upskill themselves and their department. AI has already transformed HR. It supports strategic workforce planning and enhances recruitment through AI-assisted resume screening and job descriptions. AI also personalizes onboarding workflows and improves talent management with data insights.
Chatbots can handle routine questions, while AI-based tools create personalized development plans. HR can now focus on workforce development and enterprise transformation.
Seven HR leaders from different industries were interviewed to understand the challenges they face. These conversations revealed three key leadership principles.
Human touch is important
Integration of AI can feel strange, particularly in sensitive areas such as conflict resolution and hiring. HR professionals lack the technical skills to keep up with rapidly evolving tools. One thing is that the lack of transparency in AI decisions, and the misused surveillance features can lead to distrust. It is important to strike a balance between AI efficiency, and human empathy. Recruiters spend between 30 and 40% of their time doing admin tasks. Agentic AI can help streamline this process, allowing recruiters to spend more time on interactions that add value.
Cybersecurity, data privacy and regulation
AI poses ethical and legal concerns. The systems may reproduce biases from training data and affect fairness in hiring or performance evaluation. HR leaders need to protect employee data, comply with GDPR and CCPA regulations and use new tools that help reduce bias. AI is a powerful tool but it has limitations. We should be aware of these and know when the output generated by AI is meaningful versus noise.
Managing workforce evolution
AI has also been criticized for the fear it could replace human workers or make unpersonal decisions. This is especially true in regards to layoffs. According to a 2024 Accenture survey, 58% of employees believe Generative AI leads to increased job insecurity. I agree that no company should use generative AI right now to make decisions for people on ethical grounds. HR leaders need to change perceptions about AI and show that it is not a substitute for humans, but a tool which can increase productivity.
AI can be a powerful tool for data-driven decisions. It can be implemented with skill and a careful design to process large datasets in order to reduce bias and improve HR processes.
AI can identify early warning signs in employee engagement, planning and morale. Real-time tracking allows it to align individual goals with KPIs of the organisation and support tailored benefits. Additional development is supported by personalized learning paths and tools for career planning.
AI can be used to streamline resume screening in talent acquisition and predict cultural fit using data. Chatbots automate the scheduling of interviews and answering FAQs. This frees up recruiters to focus on high-value interactions. AI enhances onboarding by personalizing training schedules and monitoring new hire progress.
Here are three HR leaders must-haves as technology transforms both their roles and the workforces that they support.
AI Ownership is a Mindset
Human resource leaders must ensure AI is fair, transparent and accountable. Human oversight is the first step. The use of AI to screen resumes is logical, but who will be evaluating the AI’s performance and how it performs? It is important to always use a “human-led and tech-enabled” approach.
This goes hand-in-hand with a good understanding of coding. HR leaders are the natural cultural, ethical and moral centre of an organisation. They must therefore be able to ask the correct questions and interpret their outputs.
Change management skills and a learning mindset
Adoption of AI requires agility and experimentation. HR leaders need to embrace failure, learn from mistakes, and test new approaches. This can be achieved by adopting an agile mindset, and evaluating the outcomes of initiatives. Key differentiators will be the ability to drive digital transformation, and have systems knowledge.
Practically, you will need to experiment with the technology. Find out how it can benefit you and your processes. This practical experiment helps leaders reimagine the HR function in line with their organisational goals.
Connecting Mindset
To ensure innovation that is sustainable, HR leaders need to bridge the gap between internal and external stakeholders. They are vital in fostering a collaborative culture, building trust and guiding teams to AI-related changes. This does not only mean connecting people, but also connecting data and identifying ways to fuel a successful AI journey.
AI in HR: Leading the future
HR leaders need to adopt the right technologies, and have the right mindset in order to fully exploit AI’s potential. Ownership, curiosity and connection are key to improving HR functions and ensuring that organisations are future-ready.
