AI in HR: How will artificial intelligence impact the role of People teams?

Artificial intelligence (AI) is no longer just a distant possibility. It’s here, reshaping industries and raising big questions for People teams. In the HR space, AI is already showing its value in areas like recruitment, employee engagement, and workforce analytics—but it’s not without its challenges. Concerns about data privacy, bias, and job displacement have left many People teams cautious about welcoming AI with open arms. 

Surveys show that many HR leaders feel at a crossroads. Roughly a third of HR leaders are piloting, planning implementation, or already using generative AI (up from the previous year), and 76% of HR leaders believe that if their organization does not adopt and implement AI solutions in the next year or two, they’ll be lagging in organizational success compared to those that do. 

The appetite seems to be there, but what’s holding HR teams back today? To help you navigate the impact AI technology may have on your People team, we’re weighing the pros and the cons and what steps you can take to better understand its place in your team’s future. 

The AI opportunity

The big argument for AI in HR has to do with its automation and rapid data analysis. With AI tools, you can streamline repetitive work, reduce manual processes, increase productivity, and crunch data faster. 

The opportunity: more time and resources to focus on big-picture strategy. And faster insights to fuel data-driven decisions.

So, what types of AI are HR leaders exploring to unlock this opportunity? What use cases can it help solve today?

• Generative AI: GenAI, like OpenAI’s ChatGPT or Jasper, can be used for speeding up tasks like creating job descriptions, summarizing resumes, and generating employee communications. These tools save time and improve consistency, especially for repetitive or text-heavy tasks.
• Machine learning (ML): Learning and development tools often use ML to provide custom learning paths for their users. Based on employee data (like skills assessments and career goals) and behaviors (like promotions or performance reviews), these tools can help People teams scale and personalize their learning and development experiences.
  
  
• Predictive analytics: Predictive analytics are just what they sound like. They can help HR leaders analyze past and present data to forecast future outcomes, like workforce trends, to support hiring plans.
  
  
• Natural language processing (NLP): AI tools with NLP are used to understand and interpret human language at scale. HR may leverage NLP through sentiment analysis tools to gauge employee engagement from surveys.

The HR concerns

Despite AI’s potential, many People teams approach the technology with caution. At a time when AI is evolving so rapidly, and with so many options, it’s hard to know what to pursue. And how to use it securely.

The top three concerns of HR teams today are:

1. Data privacy: HR teams manage highly sensitive information and the stakes are high for protecting employee data. A 2024 study by Traliant surveyed 500 folks in HR roles and found that 63% of HR professionals listed data privacy and security as their top concern regarding AI, followed by compliance with data protection laws and regulations (52%).
   
   
2. Limited resources and expertise: Adopting AI often requires technical knowledge to implement it effectively, and not all People teams have the resources to hire specialists or retrain their staff. This lack of expertise can make the technology feel out of reach, particularly for smaller organizations.
   
   
3. Ethical risks: Bias in AI systems is a real concern. If algorithms are trained on historical data, they may replicate or even amplify inequities. For HR, this creates challenges in areas like hiring, promotions, and performance evaluations, where fairness is critical. This Workday lawsuit is a case in point.
   
   
4. Job security: The concern is understandable: If AI can do it, why would my organization keep me around? However, now the conversation seems to have shifted. SAP predicts that employees who use generative AI will actually replace those who don’t.

Should you adopt AI?

The decision to adopt AI doesn’t have a one-size-fits-all answer. For some organizations, the technology aligns well with current goals and resources. For others, it may still feel premature.

Gartner recommends the following approach for assessing AI adoption in your HR practices: 

First, distinguish what’s reality and what’s myth. There are a lot of spooky stories when it comes to AI. But many are outdated or can be overcome with the right preparation. Work with your IT and legal teams to find what works for your business.

Next, evaluate your current processes and outline the best use cases for your business. You may want to start with the more tried-and-tested use cases, like using GenAI for quickly writing job descriptions or using ML-powered tools to curate learning and development pathways. 

Finally, assess and score these solutions based on success criteria. These may differ for each organization, but some key areas to consider are workforce readiness, risks and ethics, and vendor landscape. 

Remember that you can always pilot tools in low-risk areas before rolling out broader initiatives. Take this time to also develop some guidelines for your team. 

Takeaway: How to stay informed on AI trends

AI is constantly evolving, so staying informed is key. As your knowledge on the topic grows, you’ll be able to anticipate and navigate how AI will transform the role of your People team. 

Here are a few takeaway tips to fuel your AI journey:

• Follow industry thought leaders: Experts like Josh Bersin and Jason Averbrook often have insightful things to say on AI, its role in HR, and the future of work.
• ‍Engage with research: Organizations like Gartner or Deloitte are constantly publishing new and reliable research on AI adoption trends.
• ‍Attend webinars and conferences: Events hosted by organizations like HR Tech offer a meeting place to discuss AI use cases and challenges.
• ‍Join peer networks: Connect with other HR professionals to share experiences and learn from their approaches. LinkedIn offers many HR communities and is a great place for finding and following the latest AI conversation.

For more insights on the future of AI in HR and People Ops, check out this episode of Oyster’s New World of Work podcast with Dr. Kait Rohlfing, industrial-organizational psychologist and Senior Leadership Trainer at LifeLabs Learning. If you'd like to simplify your global HR operations, reach out today for a personalized demo of Oyster’s intelligent, automated platform.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

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