Welcome to Harmonious Workplaces, where we tackle the most pressing issues transforming the modern workplace. In our 85th podcast episode, “Is HR Ready for AI?”, co-hosts Rich Cruz, an organizational development consultant, and Ben Kleinman dove into the powerful disruption artificial intelligence is bringing to Human Resources (HR). The central question facing the profession is critical: What happens when routine paperwork becomes fully automated, and how can HR professionals avoid being bulldozed by AI?.
The rapid evolution of AI technology, particularly agentic AI (which automates tasks based on rules and pattern recognition) and generative AI (like ChatGPT and Gemini), is already here. As automation accelerates, HR professionals must recognize that irrelevance is no longer a risk, but potentially a “roadmap” for those who do not adapt.
The Automation Wave: Goodbye Routine Paperwork
AI excels at handling templatized, structured, and mundane documents and processes. We are already seeing AI agents automate call center services and online help chats. The next logical step involves the full automation of backend HR processes, such as traditional benefits, onboarding, and offboarding paperwork, as well as surveys and assessments.
This automation is not just affecting entry-level roles; it is displacing some well-paid, white-collar technical jobs, such as Extract, Transform, and Load (ETL) data movement, which has seen large parts of its workload moved over to AI.
The industry philosophy, particularly exemplified by Microsoft’s concept of AI as a “copilot,” suggests that AI should augment, rather than outright replace, human roles. Tools dedicated to specific business functions—such as the Project Management Institute’s (PMI) agent—can handle mundane, calculation-heavy tasks (like forward/backward passes or finding the critical path in scheduling). This frees up the human professional to focus on critical thinking and decision-making.
AI’s Core Applications in Human Resources
The key applications of AI in HR are diverse and growing, driven by the need for efficiency and data-driven decision-making. Research sourced for the podcast identified the following major areas of transformation:
- Recruitment and Talent Acquisition: AI streamlines resume screening, candidate sourcing, and initial interviews, leading to faster, more accurate hiring. A compelling case study showed that Unilever, a massive consumer product conglomerate, used an AI-powered recruitment process to cut time-to-hire by 75%—from four months to just four weeks—and increased the diversity of its hires by 16%, hypothesizing that the AI tool removed human bias.
- Performance Management and Development: AI enables objective, continuous performance tracking and offers personalized learning pathways, supporting employee adaptability and growth.
- Administrative Efficiency: Automation reduces transactional times, administrative costs, and burdens, allowing HR to shift focus toward strategic initiatives.
- Employee Engagement and Retention: AI-powered chatbots and sentiment analysis tools can support real-time feedback, potentially contributing to higher job satisfaction.
While innovative methods like gamified or game-based assessments are being used to evaluate soft skills in a low-pressure way, some professionals—like co-host Ben Kleinman—remain skeptical about whether these methods truly improve the candidate experience.
HR Must Molt: The Shift from Process to People
The most profound impact of AI is the necessity for HR professionals to make a decisive shift. As one expert noted, “HR isn’t dying, it’s molting. The shell of administration is cracking, revealing a creature that thrives on ambiguity, analytics, and authentic connection,”.
The future survival of HR careers depends on professionals leaning into the human-centric aspects of work. In an ideal situation, AI handles the rote, routine, and transactional tasks, allowing humans to focus on the things they do better:
- Building empathy and authentic connections.
- Helping coworkers design their career trajectories.
- Managing organizational culture and resolving conflicts effectively.
- Focusing on the strategic value of human capital and workforce design.
This means the “people-centric” work becomes the differentiator for HR. The value proposition of HR is shifting from simply “keeping things running” to “creating environments where people thrive, bond, contribute and stay”.
These people-focused skills—like change management, influence, culture shaping, and emotional intelligence (EQ)—are no longer “soft skills” or “nice to haves”. High EQ and communication skills are increasingly table stakes for those entering strategic or leadership roles in HR. This required shift in focus aligns with studies, such as the Harvard research tracking human happiness since the 1930s, which found human connection to be the greatest indicator of happiness and health.
Navigating the Challenges: Bias, Ethics, and Readiness
Despite the clear benefits, the path to AI adoption is fraught with challenges. AI systems run the risk of algorithmic bias and fairness issues if their inputs are not carefully monitored, which can perpetuate unfair hiring practices. Furthermore, the collection and use of extensive employee data raise serious concerns about data privacy and security.
Perhaps the greatest internal challenge is the readiness of the existing HR workforce. Many industry leaders believe that the “average” HR professional is not equipped or ready for this skills and mindset shift, facing a significant and necessary learning curve. Resistance often stems from unreadiness, anxiety over job security, and fear of change.
To prepare, HR professionals must embrace the use of AI copilots and invest in their own development. Fortunately, professional organizations are stepping up. The Society for Human Resources Management (SHRM) offers training and resources, including an AI in the Workplace Playbook and ethical guidelines for using AI prompts in communications and onboarding. Likewise, the PMI offers free training on the use of AI in project management, providing a framework for understanding how these tools function as copilots.
The choice is clear: HR professionals can choose to change and become more strategic and people-focused, or risk having the algorithm choose irrelevance for them.
Continue the Conversation!
Did this discussion resonate with your experiences? We invite you to join Rich Cruz and Ben Kleinman for more insightful episodes on organizational development and the future of work!
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