Will AI replace humans in the HR function?

As artificial intelligence (AI) develops, Kiwi organisations are experimenting with integrating it into everyday business operations, but new data from the Employment Hero survey “SuperHuman: AI Adoption Shaping the Future of HR” revealed one big concern from HR leaders.

Survey respondents overwhelmingly agreed that AI can help the HR function – 76% said it helps to save time and makes their job easier  — but more than a third (36%) of HR leaders are concerned they might lose their job to AI.

“The data from our latest study represents the HR industry in the midst of a transformation due to the influence of AI technology,” said Dave Tong, co-founder and head of product at Employment Hero.

Instead of jobs being at risk, AI is empowering HR professionals to be more strategic in workforce planning and employee care, he said.

“Through AI integration, they are crafting what their roles will look like in the future, shifting from more admin-heavy work to a strategic people and culture focus.”

With over 86 per cent of HR operations actively using AI-powered software, what is clear from the data is that the adoption of AI into the HR industry is delivering substantial benefits.

Mel Tan, group services manager at aged-care provider Sound Care Group said, “If you remember, lots of people were frightened of the internet when it first came about — now we can’t live without it. I think AI, like any form of technology, should make people’s lives easier and be used with the best of intentions.”

What skills will AI replicate?

The survey revealed that processes, analytics and efficiency are the benefits that AI can bring to the HR function, but respondents believe that retention and culture are still seen as human-first areas.

Training and development were identified as the areas where AI will have the most significant impact (34 per cent), followed by employee analytics (32 per cent) and employee self-service (29 per cent).

On the other hand, employee offboarding (12 per cent), reward and recognition (14 per cent), and remuneration and benefits (16 per cent) are seen as the least affected areas of HR.

“The possibilities are exciting,” said Tan. “Automation can already pre-screen applicants based on set criteria, but with AI, we should be able to go further by actually identifying the best person for the job. It shouldn’t just analyse attrition and retention data but help us anticipate market and staffing movements, so we can hire enough people at the right time and never be short of staff again.”

AI not going away

Looking ahead, 72 per cent of HR professionals predict that the use of AI in their role or HR function will increase in the future, with most expecting it to take a paced approach - with 46 per cent believing it will increase slightly and 26 per cent believing it will grow significantly.

“This could reflect how they’d like to see AI rolled out, so they have time to learn and adapt as these new tools are introduced. These findings showcase how HR leaders today see AI tools helping employees become self-sufficient when advancing their careers and giving managers an easier way to check in and analyse progress and performance,”Tong added.

Tan would like to see AI do more for HR, such asfurther cut down hiring times or help make decisions on which engagement programmes work best.

“It would be like having a purely objective member of the team on the table pointing us in the right direction,” she said.

“At the end of the day, we shouldn’t lose sight of the fact that human resource management is for and by humans, not machines — no matter how intelligent these machines may be.”