AI and HR: How automation forces HR to redefine its strategic value

Although the release of the first LLMs feels like only yesterday, artificial intelligence is now a major part of our everyday working lives. And HR is no exception. 61% of HR leaders were in the advanced stages of GenAI (Generative AI) implementation in January 2025. So, how can your team get the most out of AI and HR while keeping the “human” in Human Resources? 

AI is already transforming your HR processes 

For those not seriously considering bringing AI and HR together, we’ve got some bad news. You’re at risk of falling behind if you haven’t started already. As we’ve previously noted, businesses are already using AI to transform HR. 

Gartner predicts that AI will perform 50% and automate 100% of HR functions. In real terms, the percentage of HR leaders in the advanced stages of implementing GenAI (61%) is now more than triple what it was in 2023 (19%). 

And it’s not over yet. As of May 2025, 81% of HR leaders planned to deploy agentic AI in the following twelve months.

What should HR’s value proposition be? 

A value proposition is basically how you contribute to the organization and its success. Traditionally, HR’s value proposition has been that HR teams have total understanding of and control over vital internal processes, allowing them to keep costs manageable. Connecting AI and HR allows you to automate formerly complex functions, which may make human HR expertise seem less valuable.

That’s why you must redefine your HR team’s value based on strategic guidance and innovative, employee-centric services. Take training, for example. In 2024, Gartner found 85% of business leaders agreed there would be a surge in skills development needs within three years due to an evolving tech landscape. 

While AI agents can automate content curation and streamline course creation, human HR team members are still responsible for developing the right courses, redesigning roles, and creating new workflows. In a world where agents manage processes, HR must redefine its value by owning outcomes. 

As Gartner puts it, “This shift could drive a significant increase in HRBP productivity, with the current ratio rising from one HRBP per 423 employees to potentially one HRBP per every 800 to 1,200 employees within the next one to five years.” 

Your two choices when it comes to AI and HR 

According to Gartner, AI’s growing impact “[…] leads CHROs to a critical inflection point: Fundamentally reinvent HR, or risk the HR function becoming obsolete.” 

In theory, you have two choices on how to proceed with AI and HR. But, as you’ll see, there’s only one real choice if you want HR to stay relevant. 

Path 1: Dissolution 

This means handing AI and HR automation over to IT and letting them handle it. This could produce strong tech implementation, but means ultimately outsourcing a lot of HR’s responsibilities. It risks an overfocus on productivity over the human elements of HR and could lead to your HR department being dissolved into the rest of the business. 

Path 2: Reinvention 

Have HR proactively lead AI implementation. This allows you to drive productivity by enabling human-centric innovations. Things like more in-depth learning support, sentiment analysis for engagement, and AI-powered goal-setting. 

To be successful, however, you’ll have to prove HR’s unique value proposition to convince key stakeholders. Otherwise, they may not see your team’s value until it’s too late. 

Connecting AI and HR means operating model transformation 

Speaking of your unique value, AI and HR won’t deliver value through tools alone. As Gartner puts it, “Simply deploying more AI solutions is not sufficient to harness AI’s potential.” 

When preparing HR for operating model transformation, start from a blank sheet. In other words, throw out everything you think you know about how it should work. Then follow these steps: 

• Data readiness: AI is only as good as its data. Invest in robust data collection and knowledge sharing tools to keep HR metrics centralized and ensure reliable outputs. This creates a foundation for AI in HR. 
   

• Tech readiness: AI can process a lot more data than you ever could manually. That’s why you need to “elevate HR operations into digital HR solutions and delivery.” So, your systems need to be scalable, secure, and capable of processing vast amounts of info without issue. 
   

• Process readiness: Create standardized, streamlined processes for your HR system focused on customer needs as a new form of best practice. Automate processes where you can, and don’t be afraid to reinvent them from the ground up. 
    

• Upskill HR operations: Your team won’t adapt overnight. Train them in AI fluency, prompt design, scenario planning, and HR product delivery so they know the best ways to streamline and automate their work.

HR is most effective when it’s human + AI 

The implementation of AI for HR seems set to absorb a good number of your team’s responsibilities, like tier 0 (self-service) and tier 1 (query response) functions. But don’t lose the human aspect of your work in the pursuit of greater efficiency. Combining AI and HR is most effective when it frees up members of your team to support people directly. 

If you’re still stuck on using AI to support HR processes, explore how to use AI-powered HR solutions in ways your people will appreciate.