AI-powered productivity: Human resources

Is your talent strategy ready for the AI revolution?

Over the next two years, the human resources function is set to undergo its most significant evolution in a generation. It’s a shift that will move beyond simple digital tools and into a new era of intelligent automation, driven by AI. The question for every C-suite executive is no longer if this is happening, but how fast and how prepared you are to lead it.
 

Our latest report reveals that while many executives are still in the early stages of using AI for workforce analysis, the floodgates are about to open.

Our latest report reveals that while many executives are still in the early stages of using AI for workforce analysis, the floodgates are about to open. By 2027, the majority of HR professionals will be augmenting their employees with advanced AI tools, and some will even be experimenting with fully autonomous automation.

The data is clear: HR leaders are prioritizing touchless automation in key areas like recruitment, talent acquisition, and employee self-service. Their goal is simple yet ambitious: to streamline operations, boost efficiency, and create a better, more personalized experience for every employee.
 

The rise of agentic AI: A new kind of intelligence

The most transformative force behind this shift is agentic AI. Unlike the AI you’ve heard about, which simply reacts to commands, agentic AI can act autonomously. It learns from historical data on employee turnover, promotions, and performance to predict future workforce needs with uncanny accuracy. Imagine an HR function that doesn't just react to talent shortages but proactively forecasts them, providing precise recommendations on who to acquire, train, and develop.
 

HR leaders anticipate that over half of their workforce will need upskilling to adapt to this new environment. Interestingly, this doesn’t mean a smaller team. Instead, we project a slight increase in headcount as roles shift and new specializations emerge.

Early adopters are already seeing the impact. They’re using AI agents to analyze vast datasets, translating them into actionable insights that optimize benefits, refine compensation plans, and integrate employee feedback more effectively than ever before. This is the future of strategic HR—moving from a reactive support function to a proactive driver of business success.

Virtual assistants, powered by these same AI agents, are also on the verge of a major upgrade. They won't just answer questions; they'll serve as a unified interface for employees, handling everything from travel bookings to complex compensation analysis. This frees up HR professionals to focus on what matters most: strategic initiatives and genuine human connection.
 

The leap to value: Productivity, skills, and a new kind of workforce

The returns on this investment are compelling. Our research projects significant increases in key metrics, including a 35% boost in productivity and a 30% improvement in training effectiveness. The research also points to a 20% rise in retention rates and a noticeable improvement in employee sentiment.

But this transformation requires a new set of skills. HR leaders anticipate that over half of their workforce will need upskilling to adapt to this new environment. Interestingly, this doesn’t mean a smaller team. Instead, we project a slight increase in headcount as roles shift and new specializations emerge.

To manage this rapid change, many organizations are turning to external expertise. Our data shows high outsourcing rates for new AI initiatives, a clear sign that leaders understand the specialized knowledge required to implement and manage these advanced systems.

Download the data story now for more details on how HR is using AI to transform itself, along with recommendations on preparing your workforce for the future.