Smarter, faster, human: Reimagining HR in the age of predictive analytics

As businesses race to stay ahead in a fast-evolving world, the pressure on HR leaders has never been greater. From boosting engagement to reducing churn and aligning talent with tomorrow’s strategy, HR is being called to lead, not follow. But can traditional models keep up? The answer, increasingly, is no. 

Legacy HR systems, while essential in their time, often struggle to meet the pace of transformation. Artificial Intelligence has come forth as a transformative and game-changing force that is not just supporting HR’s evolution, but accelerating it. With AI now embedded in nearly every functional area, Human Resources has become a key player in digital transformation. By leveraging predictive analytics, organisations are moving from hindsight to foresight, anticipating attrition, optimising recruitment, aligning talent with future business demands, and identifying the DNA of high performers before roles are even posted. AI is helping HR move from reactive to proactive, from operational to strategic.

At the recent People Matters SurgeHR Conference in Ahmedabad, Professor Manjari Singh, renowned faculty in Human Resource Management at IIM Ahmedabad, delivered a powerful session titled ‘AI-Powered Workforce Optimisation: Driving Business Performance through Predictive HR Analytics,’ her presentation spotlighted the critical intersection of data, people, and purpose.

Drawing on deep academic insight and industry perspective, she examined how predictive analytics can revolutionise workforce planning while emphasising the need to strike a balance between process optimisation and human centricity at the heart of every AI-driven decision.

Debunking the myth of job losses

Professor Singh opened with a critical reflection on the Luddite Fallacy, the long-standing fear that technology will lead to mass unemployment. “Every technological revolution, from textile mills in the 19th century to AI today, has sparked fears of job losses. But history shows that while some roles become redundant, many new opportunities are created.”

The real challenge, she emphasised, is not job displacement but keeping the workforce upskilled. “Technology adoption is not an option anymore. The question is: how to do it effectively.”

Repositioning HR: From cost management to value creation

One of the central themes was the need for HR to break free from its identity as a cost centre. “HR often ends up managing costs rather than creating value. But now, with tools like ChatGPT and predictive analytics, there’s a real opportunity for HR to become a value creator.” AI can help HR move from administrative functions to strategic workforce planning, enhancing productivity, reducing attrition, and aligning talent with business objectives.

Data-driven insights: Use with caution

Professor Singh cautioned against the blind use of data in decision-making. “When HRIS was being implemented 25 years ago, we warned: implementing a bad process only speeds up bad outcomes. The same applies to AI today.”

With AI, data quality becomes critical. She highlighted the “Rare Class Problem,” situations where AI may miss exceptional but rare employee behaviors or skills due to algorithmic limitations. “If you’re doing something rare but valuable, AI may not reflect that. It might get lost in the data.” Organisations must carefully plan what data they collect and analyse, and ensure they “do not miss out on key data that could have changed the decision entirely.”

Becoming strategic instead of fire-fighting

Despite decades of discussions on strategic HRM, the reality is often different. “Since the 1980s we’ve been talking about being proactive. Yet, most HR professionals are stuck in fire-fighting mode.” AI can finally offer a breakthrough, freeing HR from reactive operations to engage in long-term workforce strategy. But Professor Singh cautioned against superficial claims. “We also need to be wary of AI-washing, claiming to use AI when it’s actually just a buzzword. Always ask: what is the real impact?”

AI + human centricity: A dual mandate

While AI is powerful for process optimisation, HR must never lose its human-centric essence. “HR’s biggest strength is its focus on people. It’s not just about optimising a process; it’s about understanding the person behind the process.” She cited the example of AI-powered real-time assistants for customer-facing roles. These tools, integrated with CRMs like Salesforce, help employees better understand customer profiles and needs, thereby enhancing customer engagement and creating value.

AI for employee engagement and upskilling

Employee engagement, often a difficult KPI, can now be tracked and improved with AI tools. “Predictive analytics helps HR understand where engagement stands, what drives it, and how it can be improved.” She also emphasised the inevitability of upskilling. “Jobs are being reshaped. Competency building is no longer optional.” Today's workforce often sources its own learning tools. HR's role is to channel and quality-control learning, tailoring it through predictive analytics to meet individual needs.

Knowledge management and attrition preparedness

With rising attrition, AI-powered knowledge management systems become vital. “When both employees and bosses are new, the system must guide them. The focus should be on managing attrition, not just reducing it.” Predictive models can help identify where such systems are most needed.

The imperative of job redesign and crafting

AI is also accelerating the need for job redesign, especially for a Gen Z workforce that demands more autonomy and purpose. She introduced the concept of job crafting, which “If AI tools are to be implemented effectively, cognitive crafting, the mindset change, becomes crucial.”

However, bottom-up job crafting, though effective, is challenging to implement. “Top-down processes are more accepted. Bottom-up ones often get lost, despite their value.” 

In her closing remarks, Professor Singh emphasised the importance of striking a balance between process optimization and human centricity in the use of AI. She highlighted that while some HR processes can benefit from automation and efficiency, others require a people-focused approach that prioritizes empathy and understanding. Her session served as a thoughtful and practical reflection on how AI, when applied judiciously, can transform HR into a more strategic, emotionally intelligent, and data-driven function.