For years, businesses have relied on rigid rules to automate tasks. Then, classic AI arrived, introducing a layer of personalisation. Today, generative AI is taking it further, enabling machines to understand and interact using human language—redefining operations and personalisation across industries. 

Nagaraj Nadendla, Senior Vice President of Product Development at Oracle Fusion Cloud HCM, explains how this evolution is not just about advancing technology but about empowering people to achieve more. 

“As Larry Ellison, Oracle's CTO and Chairman, says, ‘It's all about the experience.’ We've made it a core part of our offerings, democratising access to this powerful technology.”

The recent economic shifts, from the Great Resignation to the Great Layoffs, have accelerated the adoption of technology. AI, in particular, has played a significant role in helping organisations adapt to these changes. From streamlining HR processes to improving employee experiences, AI is driving innovation and productivity.

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In this conversation, Nadendla, a veteran in product development, delves deep into the rise of AI agents, Oracle's approach to data privacy, and the role of dynamic skills in shaping future workplaces.  

Here are the edited excerpts.

Mastufa: Given your extensive experience in HR tech and AI, how do you see the future of work evolving?  

Nagaraj: The way work is done is transforming beyond HR tech. We’ve moved from rule-based automation to classic AI, and now to gen AI. At Oracle, we’ve focused on using AI for tasks like content generation and feedback summarization. For instance, it can help generate survey content for managers looking to gather feedback from their teams. Recently, we introduced AI agents at CloudWorld, which allow users across all functions to streamline tasks quickly, marking a significant shift in how technology is used in the workplace. It’s exciting to see our customers and partners have adapted and evolved alongside these advancements.

Mastufa:  The post-pandemic world has been tumultuous, with rapid shifts in the job market. How has technology, particularly AI, influenced these changes?

Nagaraj: It's been fascinating. In a short span, we went from the Great Resignation to what I call the Great Layoffs. This compressed economic cycle, coupled with rapid technological advancements, has reshaped the workforce. Technology often gets credit—or blame—for such shifts.

Take the automobile industry, for example. Initially, car manufacturers could only produce a limited number of vehicles. With the advent of assembly lines and robots, production scaled exponentially. Technology didn’t just increase output; it enhanced the experience for consumers and the entire supply chain.

Similarly, technology has always driven productivity. HR has long invested in automation and AI to help organisations focus on more strategic tasks while automating repetitive work. Generative AI, however, marks a significant leap. Its ability to enable natural language interaction—whether for employees, HR specialists, or managers—has transformed how people get work done.

Mastufa:  From your perspective, what are the most exciting opportunities AI offers for HR, and how do you see businesses integrating AI into their HR practices?

Nagaraj: At Oracle, we take a different approach. Unlike many competitors, we don’t charge extra for generative AI. It’s not an add-on; it’s a fundamental enhancement of the experience. As Larry Ellison, our CTO and Chairman, said at CloudWorld, "It's all about the experience." We believe AI should be embedded within the system, as that’s how humans naturally interact.

We've seamlessly integrated generative AI into our offerings. For example, our Redwood design system, now part of our Fusion Applications suite, redefines the user experience. We’ve made significant progress, and many AI functionalities are already available, with just a few components still being refined.

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Historically, we’ve evolved from mainframes and green screens to client-server models, web-based applications, and mobile-first experiences. Now, we’re moving into the era of generative AI-enabled applications—whether it’s for agenda management or other future tools. The goal is to make AI a part of the experience, not just a technology. This seamless integration is central to how we’re shaping the future of work.  

As for how businesses are leveraging AI, we’re seeing a mix of reactions. Many are excited and eager to adopt AI. For example, AI is helping with employee experience by generating goals, crafting personalised recruiter emails, and creating survey questions for managers. Career sites are also benefiting—some customers are using AI to provide candidates with instant feedback on their match to job requisitions.

While the adoption is strong, larger organisations tend to be more cautious, ensuring everything is thoroughly vetted before integrating AI.  

Mastufa: Are there any regional differences in AI adoption rates?

Nagaraj: While there isn't a significant regional variation, we do see differences across industries. Highly regulated sectors like the public sector may be more cautious due to compliance requirements. However, many organisations, regardless of size or location, are eager to adopt AI, especially when it comes to streamlining processes and improving efficiency.

Mastufa: Given the competitive landscape, what sets Oracle's HCM solutions apart, especially when it comes to AI integration?

Nagaraj: We’re constantly rolling out new features every quarter, with generative AI being our latest milestone. What really sets us apart is our focus on improving the user experience.

We’re also deeply invested in skills-based organisations. We believe that skills are the new currency in the workforce, and understanding what employees know—or need to learn—helps organisations run more smoothly. This is something we’ve embedded throughout our HCM solutions.

Another exciting development is our AI agents. These agents are designed to make work easier and more productive for everyone—from employees to managers, HR teams, and leadership. 

Mastufa: Data privacy is a major concern when implementing AI-powered HR solutions. How does Oracle address this challenge?

Nagaraj: At Oracle, data privacy has always been a top priority, long before AI became a major focus. With regulations like GDPR in place, we make sure that customer data is fully isolated and stored securely within their own environments.

We don’t use personally identifiable information (PII) for AI functions, including generative AI. Your data isn’t used to train models, and even the data you provide is temporary and never retained.

Mastufa: You mentioned AI agents. How will AI agents accelerate the adoption of AI in HR?

Nagaraj: Absolutely, AI agents are designed to speed up adoption by making tasks more efficient. For example, if you're a manager handling promotions, the agent can quickly provide important details like salary adjustments or context, simplifying the process. Employees can also use agents to get fast answers during benefits enrolment, helping them make informed choices without sifting through lengthy documents.

While the agents assist with decisions, the final choice always lies with the user. These tools are powerful for improving workflows, from routine tasks to more complex ones. As for data privacy, we ensure that these agents follow strict guidelines to protect user information while providing valuable insights.

Mastufa:  What advice would you give to organisations facing challenges during implementation? Any best practices for a smooth rollout?

Nagaraj: From talking to our customers, we’ve noticed a variety of approaches. Many start with simpler features, like having agents help employees with basic tasks—things like checking leave balances or answering common questions. These types of rollouts are usually well-received, as they improve productivity and don’t raise any red flags.

When it comes to more sensitive areas, like diversity and inclusion, organisations tend to take a bit more time to evaluate and fine-tune their approach. But overall, we’re confident that these features will be widely adopted, as businesses recognise the value of delivering seamless and intuitive experiences for their teams.

Mastufa: How do you see human interaction evolving with increasing AI integration?

Nagaraj: AI won't replace human interaction; it will enhance it. While AI can automate routine tasks, complex decisions and empathetic interactions will always require a human touch. Consider the promotion process: AI can streamline communication by providing relevant information, but the final decision, especially regarding global transfers with tax implications, will still require human expertise.

We'll likely see AI initially applied to simpler tasks like goal-setting or basic queries. As organisations become more comfortable, AI will gradually integrate into more complex workflows. However, the human element will remain essential, ensuring ethical decision-making and fostering strong employee relationships.

Mastufa: Do you foresee any specific job roles or new positions emerging in HR as AI continues to evolve? 

Nagaraj:  If we look at history, the evolution of technology has always reshaped job roles—some disappear, while others transform. This is nothing new with AI, whether generative or classic; we’ve seen similar shifts with tools like social media or earlier productivity software.

In HR, we’ll see existing roles adapt to incorporate AI-driven tools. New positions, like AI Specialists for HR or Data Ethics Officers ensuring compliance and fairness, could emerge. At the same time, traditional roles will evolve, integrating AI to improve efficiency and decision-making. It’s a natural progression as technology continues to reshape our work.

Mastufa: What's your vision for the future of AI and Oracle's role in it?

Nagaraj: AI is a big part of our focus, but we see it as just one piece of a much bigger picture. We’ve evolved from rule-based automation to AI agents, which have the potential to solve complex problems, assist with negotiations, and improve the user experience in so many ways.

But it’s not just about AI. We're also focused on helping organisations become skills-driven. This shift, similar to the transition from traditional to electric vehicles, is going to change the way we work. Our goal is to create seamless, intuitive experiences that not only empower people but also help businesses thrive.