Analyst Perspectives

In the rush to embrace AI and automation, organizations are making a critical misstep: they are treating technology as a replacement for HR rather than as an enabler of its evolution. While AI, machine learning and automation offer powerful efficiencies, HR's core mission has always been about people. The challenge today is ensuring that technology amplifies—not replaces—the human touch in HR. Unfortunately, many organizations are being short-sighted in their approach, failing to fully leverage innovations that could significantly enhance HR’s capabilities and strategic impact.

HR is lagging behind technology, and it’s not because the innovations aren’t there. It’s because HR professionals often don’t fully understand the capabilities. HR professionals are 'people people,' not typically technologists, and as a result, they sometimes approach AI and digital tools as if they are simply the next iteration of automation rather than a fundamental shift in how HR operates.

Too often, HR teams are tasked with implementing technology without a clear understanding of its design and purpose. Even within the same category—learning, compensation, performance management—each technology solution is built with a slightly different intention. Without deep insight into those nuances, HR professionals risk misusing or underutilizing their tools. Worse, the allure of the AI-powered 'easy button' means many overlook the need for governance and human oversight, leading to haphazard adoption.

The most glaring example of this is AI-driven workforce reductions. Many organizations see AI as a way to streamline HR operations and reduce headcount without recognizing the broader implications. Recruiting is more than job postings and resume screening. Learning & Development goes beyond course completions and compliance tracking. By reducing HR to a set of transactional tasks that can be automated, organizations strip the function of its most valuable asset: the ability to connect, support and guide employees. I assert that by 2027, two-thirds of enterprises will expect their HCM software to be utilizing AI for personalization in the interactions between employees and HR.

AI and GenAI have had the most significant impact on HR—both positive and negative. When used correctly, AI enhances HR’s ability to drive engagement, recognize employees and personalize the employee experience. It can remind managers of key milestone events and help analyze trends in engagement and performance. But when misused, it makes HR feel performative, with AI-driven recognition and support coming off as robotic rather than genuine. Employees can sense when something is inauthentic, and an AI-generated message celebrating an anniversary or achievement isn’t the same as a heartfelt acknowledgment from a leader.

Beyond engagement, AI’s impact on analytics and decision-making presents another challenge. Organizations that don’t understand AI’s limitations risk making flawed decisions based on incomplete or biased data. HR teams must take an active role in ensuring that AI-driven insights are interpreted correctly, and that human oversight remains a key part of the process.

The solution is twofold: HR professionals must deepen their understanding of technology, and HR tech vendors must take a more active role in education.

HR leaders should set expectations for their teams to stay informed about the technology landscape, especially in their respective domains. Understanding the why behind AI tools—not just the what—will enable HR to be more strategic in its adoption and application of technology. At the same time, HR tech vendors need to do more than just sell their products; they must educate their buyers. Vendors are uniquely positioned to explain not only how their solutions work but also how they compare to other offerings in the market. Without this education, HR teams may invest in tools that aren’t the right fit or fail to maximize the value of the technology they do adopt.

One of the most overlooked aspects of HR tech transformation is change management. The most successful technology implementations occur when HR works closely with finance, IT and the executive team to ensure alignment and buy-in. AI in HR isn’t just an HR issue—it impacts the entire organization, from workforce planning to compliance and beyond.

Collaboration is key. Without it, HR tech investments can fall flat, leading to poor adoption, employee resistance and wasted resources. Change management strategies should focus on clear communication, stakeholder engagement and practical training to help HR professionals build competence and confidence in new tools.

The future of HR technology isn’t about replacing human expertise with digital tools—it’s about integrating the two in a way that elevates HR’s impact. AI is already transforming HR through writing support, trend analysis and data interpretation. The next frontier will be AI-enabled digital workers—agents that assist HR teams in more complex ways, allowing human professionals to focus on high-value, strategic initiatives. This leads me to assert that by 2027, two-thirds of enterprises will require AI in all HCM and adjacent systems to curate personalized experiences for all workers to enable engagement for productivity and retention.

To prepare for this shift, organizations must invest in structured educational tracks to develop AI competency within HR. AI isn’t an 'either-or' proposition—it’s a shared vision where people and technology work together to create a better workplace. Businesses are integrating AI across every role, equipping their workforce with intelligence and automation that enhance decision-making, streamline operations, and drive productivity—gains that should be acknowledged and strategically leveraged.

When organizations recognize that AI should empower HR rather than diminish its role, they’ll unlock the full potential of both human expertise and technological innovation.

HR has the opportunity—and responsibility—to lead the charge in integrating AI and technology in a way that enhances the employee experience rather than diminishing it. The path forward requires:

• Education: HR professionals must invest time in understanding how AI works, why it was built, and how to use it responsibly.
• Governance: AI requires oversight. HR teams must establish ethical guidelines and frameworks for responsible AI use.
• Collaboration: Success comes from working across the business, ensuring that AI and automation serve a broader strategic purpose.
• Change Management: HR tech transformations fail when change management is underestimated. Organizations must ensure employees at all levels are prepared for AI integration.

Technology should not dictate the future of HR. Instead, HR must take the lead in shaping how technology is used—ensuring that the human element remains at the core of every innovation. Organizations that get this balance right will see AI not as a replacement, but as an accelerator of HR’s true potential.

Regards,

Matthew Brown