The future of HR: how (Gen)AI and systems thinking are revolutionizing the HR function

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I have noticed more and more that many managers, especially those in HR, tend to underestimate how much artificial intelligence (AI), generative AI, AI agents, and automation will affect their own roles. That’s why I decided to write this blog.

In this blog, I will show what (Gen)AI and automation can already mean today for managers, and especially for HR roles and HR management. Think of automatically scheduling job interviews, screening resumes, answering frequently asked questions from employees, processing expense claims, and analyzing employee satisfaction in real time. These are tasks that often take up a lot of time but require little human creativity or empathy. It is precisely this kind of repetitive work that can be taken over very well by (Gen)AI. For example, a study has shown that at IBM, AI can already handle 94% of standard questions. As a result, the role of the HR Business Partner at IBM has largely disappeared, except at the top level. This has led HR budgets to shift to departments such as sales and engineering (Bersin, 2025a; 2025b).

My intention is of course not to criticize managers and HR managers, but to show what is already possible now, and what is yet to come. What worked yesterday may be outdated tomorrow. HR should not only follow developments but also think ahead and actively shape the future. By using AI in a smart way, more time and attention will ultimately become available for what truly matters: human contact, where it is still needed.

An important consequence of this is that in many processes, the need for human contact will naturally decrease. As a result, many traditional HR tasks will eventually disappear. This will lead to a reduced need for maintaining middle management, of which HR management is often a part.

(Gen)AI is not a replacement for humans, but rather an enhancement, provided it is used properly. In the rest of this blog article, you will read how that works.

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Note: In this blog, I have used a number of terms that are common and reflect important trends in our society. Would you like to know what AI, Gen AI, and AI agents are? Then read this blog in which I clearly explain many common terms. In this blog, you can also read about the differences between all these concepts.

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From administration to strategic partnership

Let’s start at the beginning. The traditional image of HR as administrative support is rapidly disappearing, and this shift is becoming noticeable almost everywhere. Whereas HR used to focus mainly on personnel administration, payroll processing, and basic recruitment processes, the function is evolving into a strategic, data-driven, and people-oriented discipline. This transformation is being accelerated by the rise of artificial intelligence (AI), generative AI (GenAI), and AI agents that take over repetitive tasks (McKinsey & Company, 2024). Various AI tools are increasingly automating routine activities such as resume screening, interview scheduling, and answering standard questions via chatbots and virtual assistants (TalentHR, 2024). As a result, HR professionals have more space to focus on strategic issues such as talent development, cultural change, and employee engagement.

We are also seeing a growing number of AI agents entering the market. These agents distinguish themselves by their ability to reason, plan, and act independently in collaboration with humans (FlowForma, 2024). Skills-based approaches are therefore becoming more important. AI now not only assists in candidate selection but also in analyzing skills and making compensation proposals based on those skills, as IBM’s CogniPay has been doing since 2018 (Bersin, 2025b).

Looking at current practice, many HR departments are still primarily focused on operational processes: recruitment and selection, personnel administration, absence registration, payroll management, organizational development, leadership training, and performance reviews. These activities are largely process-driven, reactive, and dependent on human intervention. In many companies, HR still operates as a support function that follows rather than leads (McKinsey & Company, 2024). However, digitization, automation, and AI integration are increasingly making these traditional tasks automatable.

At the same time, globalization is fundamentally changing our society, labor markets, ways of working, and societal expectations. Many employees, especially younger ones, demand more flexibility, purpose, and development opportunities. Their priorities include meaning, work-life balance, and sustainability.

Because of these developments, organizations must become more agile and data-driven. As a result, HR must add strategic value (TalentHR, 2024). In fact, research shows that the salaries of Chief HR Officers (CHROs) have grown five times faster than those of CEOs over the past twenty years, underlining HR’s increasing strategic importance despite the rise of automation (Bersin, 2025b).

In terms of job roles, this shift means that many permanent positions are being replaced by flexible, project-based structures. Skills-based matching is becoming essential to connect the right talent to the right project at the right time. Traditional performance indicators such as working hours and physical presence are being replaced by output-based metrics. In other words, results-oriented work is becoming more important than being present in the office and clocking hours. Consequently, traditional hierarchical structures are increasingly giving way to autonomous, self-managing teams.

We are also seeing a rising demand for hybrid and remote work. Accelerated by the COVID-19 pandemic, this shift brings new challenges in building digital organizational cultures. HR now needs to develop new strategies for virtual team building, digital communication, and maintaining cohesion in distributed work environments (McKinsey & Company, 2024). More virtual work also enables more automation. For instance, AI can transcribe and summarize virtual meetings, and even generate personal development plans based on one-on-one online conversations with employees. This significantly reduces the workload for both HR staff and employees.

All of these developments indicate that HR is increasingly shifting from administrative and repetitive tasks to a strategic role as a partner to top management. The focus is also shifting toward more meaningful engagement with employees, enabling HR to offer more personalized solutions and truly meet employee needs.

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Technological revolution and new work models

If we look around us, it becomes clear that the automation of administrative processes is playing an increasingly significant role within HR. Tasks such as payroll administration, contract management, absence registration, and onboarding procedures can now be largely or even fully taken over by AI and Robotic Process Automation (RPA), enabling HR professionals to shift their focus to strategic matters (FlowForma, 2024). Recruitment processes are undergoing a true revolution thanks to the use of generative AI (GenAI) and general artificial intelligence (GAI), which can pre-select candidates based on advanced pattern recognition, behavioral analysis, and historical data. This leads to faster, more objective, and more effective selections while minimizing human bias (TalentHR, 2024; Bersin, 2025b).

Research shows that organizations are already reducing their time-to-hire by 30% with the help of AI, and the adoption rate of AI-supported HR processes has reached 96% (Phenom, 2025).

“We’ve reduced our time to hire by 30% with AI… We’ve also seen a 96% adoption rate among our hiring teams. This shows that the technology isn’t just effective but also intuitive and empowering for everyone involved. AI has also driven a significant improvement in the quality of hires, ensuring that every new team member aligns with our culture and contributes to our vision.” (Phenom, 2025)

Recruiters who use AI save an average of 16% of their working time and are able to find qualified candidates faster. At the same time, 64% of HR managers indicate that it has become more difficult to find suitable candidates due to a shortage of technical skills and an oversupply of unqualified applicants. Currently, 37% of European companies are using AI tools in recruitment, a significant increase compared to the previous year (Recruitmenttech, 2025; Hirebee, 2025).

As mentioned earlier, HR is becoming increasingly data-driven, often through the use of predictive analytics. AI models can predict staff turnover, burnout risks, absenteeism patterns, and productivity trends before they escalate, allowing organizations to intervene proactively (McKinsey & Company, 2024).

Hybrid workforce and ethical challenges

More and more organizations are working with a hybrid workforce consisting of permanent employees, freelancers, and autonomous AI agents. This shift introduces new challenges for HR policies and leadership. Optimizing collaboration between people and machines is becoming a new area of expertise within HR (Bersin, 2025b). Additionally, HR is increasingly responsible for ensuring the ethical use of AI within organizations, this includes creating transparency standards, implementing bias detection systems, and establishing AI audit procedures (FlowForma, 2024).

More than 80% of AI projects in HR fail, not because of the technology itself, but due to human factors such as lack of support, insufficient training, and the absence of clear (AI) guidelines (SHRM, 2024).

If you live in Europe, the AI guidelines set by the European Parliament, commonly known as the AI Act, also apply to your HR practices, so it’s important to take them into account. A separate blog post about ethical guidelines for using (Gen)AI, based on the European AI Act, will be published soon. This Act has been in force across Europe since February 2025. One of the key provisions of the AI Act is that employers must ensure their employees who work with AI are sufficiently AI-literate. The use of AI systems that infringe upon fundamental rights, such as social scoring or emotion recognition in the workplace, is strictly prohibited. From August 2025, violations can result in severe penalties of up to 35 million euros. There will also be additional requirements for general-purpose AI models. Other parts of the legislation will come into effect in 2026 and 2027 (SD Worx, 2025; ServiceNow, 2025).

Often, HR plays a key role in guiding organizations through this kind of AI regulation, helping develop AI literacy among employees and enabling effective collaboration between humans and machines (McKinsey & Company, 2024).

A separate blog post with practical do’s and don’ts for using AI in HR will follow soon. Once it is published, the link will be added below.

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Personalized learning pathways through AI

AI is highly effective in enabling personalized learning pathways tailored to individual needs, learning styles, and career aspirations. Through AI, employees can benefit from real-time coaching, continuous skill development, and just-in-time training, often facilitated by virtual learning assistants. This significantly enhances the impact of learning and development programs (TalentHR, 2024).

A crucial condition for success is that HR fosters a culture in which experimentation is encouraged and failure is embraced as a learning opportunity (SHRM, 2024), a culture grounded in creativity and resilience. This mindset is essential as AI continues to disrupt a wide range of sectors and transform job roles. Organizations that genuinely internalize these values consistently show greater innovation capacity and adaptability (Bersin, 2025a; HR Praktijk, 2025).

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The future of HR in the era of Artificial General Intelligence and Superintelligent AI

Artificial General Intelligence (AGI) and Superintelligent AI (SAI) are expected to radically reshape the HR field within the next decade. AGI will be able to perform tasks across domains with human-like flexibility, while SAI will surpass human intelligence and significantly outperform humans in decision-making and problem-solving.

If these developments materialize, AI systems will be capable of independently making complex HR decisions within ten years. This will demand new governance models, robust ethical frameworks, and continuous human oversight to guarantee responsible use (Bersin, 2025a). Moreover, organizations must prepare for emerging work structures such as Decentralized Autonomous Organizations (DAOs) and token-based compensation systems, developments that require in-depth knowledge of digital governance.

At the same time, financial markets are on the brink of major transformations driven by automation and AI, a shift that is becoming unavoidable. The legal and ethical landscape surrounding data, AI, and labor rights will evolve rapidly. HR must take a proactive role in staying current with new legislation and ensuring full compliance (TalentHR, 2024).

HR will also play a pivotal role in guiding employees toward flexible career paths and new forms of livelihood security, as traditional job security becomes increasingly uncertain. This requires a redefinition of employment itself and a shift toward adaptable, future-proof workforce models.

Due to these ongoing developments, HR is becoming the vital link between technological innovation and human-centered organizational growth. It supports employees in navigating an increasingly dynamic labor market, where conventional job structures give way to more flexible and innovative ways of working.

In short, the rise of AGI and SAI brings immense opportunities and challenges for HR. With the right mix of governance, ethical safeguards, and a people-first approach, HR can lead organizations confidently into a future where superintelligent AI becomes the norm.

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New roles and future proof strategies

Let it be clear, the (Gen)AI revolution does not eliminate traditional HR functions, but transforms them and creates new specializations within HR. These roles focus on the smart use of technology and on making work more human.

Below are some emerging HR roles:

• AI Change Agents
  Guide the implementation of AI technologies within organizations and build a culture in which employees embrace technological change (Bersin, 2025b).
• AI HR Business Coaches
  Advise HR leaders on strategic choices regarding AI and analyze the impact of technology on work structures, team composition, and leadership.
• Workplace Futurists
  Identify trends and research how work, roles, and organizations are developing in an AI-driven future (FlowForma, 2024).
• AI Wellness Leaders
  Safeguard the balance between technology, productivity, and well-being. They ensure that AI does not lead to stress, overload, or alienation among employees.
• AI Career Developers
  Support employees affected by automation and actively assist with reskilling and upskilling, so they remain sustainably employable in a changing labor market.

These new roles make it clear, the future of HR is not about less human work, but about working smarter, more future-oriented, and more people-centered with technology.

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Impact of AI on HR challenges and practical tips for success

When we zoom in on the impact of AI on the HR domain, it becomes clear that, in addition to technological applications, numerous new roles are emerging around AI governance, data quality, and ethics. HR managers need to be well-informed about these, as they play a key role in promoting AI literacy among employees. This responsibility is not optional, the European Union sets clear requirements in the AI Act regarding knowledge, transparency, and responsible application of AI within organizations.

It is therefore essential that organizations start now by mapping their existing HR processes and identifying where automation and AI can add value. Think of deploying AI-driven tools for recruitment, onboarding, performance management, talent development, and employee engagement. This not only makes HR more efficient, but also more strategic.

To enable this transformation, HR teams need new skills. Training in AI literacy, data analysis, ethical decision-making, and change management is indispensable. In addition, developing systems thinking is crucial, it enables HR professionals to understand complex organizational dynamics and design smart, coherent interventions. In a rapidly changing world, adaptive leadership becomes essential, the ability to remain agile and provide direction amid uncertainty and continuous change.

Learning must also be seamlessly integrated into daily work. Personalized, on-demand learning experiences are becoming the norm. GenAI can help by developing customized learning paths, providing real-time feedback, and continuously supporting professional growth.

Collaboration with technology experts will become a fundamental part of successful HR transformation. HR will need to build bridges between human needs and technological possibilities, working closely with IT, data analysts, and AI specialists.

Ultimately, one factor remains decisive, culture. Technology may be the accelerator, but it is the organizational culture that determines whether innovation truly takes root. HR must therefore consciously invest in inclusive, transparent, and learning work cultures in which employees feel safe to experiment, make mistakes, and grow. Only with a strong ethical compass and a people-centered approach can AI become a sustainable and positive force within the organization.

According to Gartner, HR professionals must also adapt to hybrid work models, the integration of generative AI, and the growing interest in flexible work structures, such as the four-day workweek. This requires new strategies for personnel policy, mapping the impact of AI on roles and skills, and redesigning work structures. The focus is shifting from degrees to skills, giving HR access to broader and more diverse talent pools (Catalyst Team Building, 2024, Gartner, 2025).

Harvard Business Review also highlights the strategic importance of neurodiversity. Hiring people with autism, ADHD, or dyslexia can lead to more innovative thinking, higher productivity, and stronger team dynamics. AI technology can play a supportive role here by providing these employees with personalized guidance, which not only enhances their potential but also reduces the workload for HR teams.

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AI and systems thinking

Aroun us, we also see that many organizations and companies are facing challenges such as high employee turnover, burnout, and low engagement. These problems are often not isolated incidents, but symptoms of broader systemic failures within the organization. Effective HR interventions therefore require systems thinking, an approach that uncovers and addresses the underlying causes and connections within the entire organizational system, rather than just treating the visible symptoms.

AI can significantly improve this systemic approach. By collecting and analyzing large amounts of data, such as personnel data, employee feedback, work processes, and culture measurements, AI can discover hidden patterns and bottlenecks that are difficult for humans to recognize. For example, AI can detect early signs of work-related stress, identify links between leadership styles and engagement, and predict turnover based on factors such as workload and career opportunities.

To use AI effectively to improve these systems and mitigate risks, the following steps are essential:

• Ensuring data integration and quality, only with reliable and up-to-date data can AI provide valuable insights.
• Transparency of AI models, HR professionals must understand how AI arrives at certain conclusions so they can make well-informed decisions.
• Human involvement, AI is a tool for support, not a replacement for human empathy and judgment. Employees should be involved in interpreting results and implementing solutions.
• Adhering to ethical and privacy guidelines, trust in AI applications is crucial. Organizations must ensure strict compliance with privacy laws and ethical standards.
• Continuous learning and adjustment, AI systems must be flexible and continue to learn from new data so that HR interventions remain effective in changing circumstances.

By integrating AI into a systemic approach to HR, organizations can address not only the symptoms of personnel issues but also tackle the deeper causes. This leads to a healthier, more engaged, and more productive work environment.