As AI revolutionises industries, HR is quickly becoming one of its most impactful arenas. 

With employees expecting seamless, consumer-grade experiences and organisations racing to stay ahead, the role of HR is transforming into a dynamic, data-driven powerhouse.

The rapid rise of AI has brought a need for HR leadership to rethink workflows, integrate innovative technology, and reimagine employee support. But where should HR leaders focus? How can organisations tackle the complexities of AI integration while enhancing employee engagement and satisfaction?

To reflect on these questions, HR thought leaders gathered at the Taj Santacruz on October 24th in Mumbai for an exclusive roundtable hosted by People Matters and IBM. This immersive event, “AI-Powered HR: Driving Efficiency, Effectiveness, and Superior Workplace Experience,” brought together industry experts to discuss the future of AI in HR.

Opening the session, Ramit Gupta, Consulting Partner and HR, Finance, and Supply Chain Transformation Leader at IBM India & South Asia, shared insights on the transformative power of AI in shaping modern HR operations. The conversation set the stage for a deeper exploration into how artificial intelligence is not just a buzzword but a catalyst driving efficiency, effectiveness, and an elevated employee experience.

IBM’s transformation journey began its HR revamp by establishing a Shared Service Center to unify essential functions like HR, finance, procurement, and legal, ultimately saving billions and creating a streamlined, tech-enabled ecosystem. This journey has culminated in the development of a robust digital assistant, which has evolved from a simple Q&A chatbot to a comprehensive digital companion, handling over 10 million interactions annually with a 94% adoption rate. Here are some of the key highlights from the keynote.

The pace of technological advancement: With tech evolving rapidly, Gupta emphasised that HR’s adoption of AI must keep pace, moving away from annual updates to continuous model-based enhancements.

Digital transformation with responsibility: While AI implementation is transformative, responsible AI—focused on data security, governance, and transparency—is critical.

Seamless employee experience: Employees today demand user-friendly, tech-enabled interactions akin to consumer apps. AI-driven platforms meet these expectations across locations and devices.

Cost and efficiency optimisation: Through shared services and AI, IBM has achieved multi-billion-dollar cost savings, demonstrating AI’s potential to streamline operations without compromising quality.

Gen AI and future capabilities: Looking ahead, Gupta highlighted that AI’s full potential in HR is vast, from predictive analytics to personalised engagement. The focus, however, remains on responsible AI, with data governance and security at the forefront.

As companies worldwide explore AI’s role in enhancing HR, Gupta’s insights offer a glimpse into the possibilities when technology and human resources align with purpose, responsibility, and a vision for an improved workplace experience.

This was followed by a moderated roundtable discussion on “AI-Powered HR”, which delved into exploring how technology now supports a purpose-driven and responsive employee experience.

The transformative shift

Leaders reflected on the transformative role of AI in HR, focusing on how it has evolved from simple chatbots to sophisticated digital assistants capable of handling multi-layered information. This shift has allowed organisations to serve both their operational needs and employees’ interests, highlighting AI’s potential to enhance HR functions.

While sectors like healthcare and finance have been at the forefront, leveraging AI for efficiency gains and deeper insights, manufacturing and other industries are exploring ways to catch up. As these industries learn from early adopters, AI in HR is proving to be a key tool for streamlining processes, improving accuracy, and delivering consistent, quality experiences.

Developing Digital Capabilities

For traditional industries like manufacturing and construction or infrastructure, the transition to digital capability requires a shift in mindset and strategy. Many of these organisations have historically relied on manual processes and lack the built-in digital infrastructure found in tech-focused sectors. Leaders emphasised the need to not only acquire digital talent but also to cultivate an environment where these capabilities can flourish alongside core business operations.

Building a mature digital ecosystem requires organisations to consider where technology can most meaningfully improve day-to-day work. For instance, by deploying robotics in manufacturing, companies can streamline plant monitoring and enhance productivity, allowing employees to focus on higher-level tasks. 

Leaders recognised that while AI and automation offer enticing opportunities, success hinges on making these solutions intuitive, relevant, and sustainable for employees who may be new to digital workflows.

Experience through process simplification

In the push towards digital transformation, prioritising employee experience has become a key goal, with organisations focusing on how AI can streamline and simplify processes. Leaders shared examples of identifying common "pain points," such as the reimbursement process, which employees often find cumbersome. 

By addressing these areas first, companies can make immediate improvements in employee satisfaction, making work less frustrating and more efficient. AI-driven solutions, such as automated workflows, can significantly reduce bottlenecks, giving employees easy access to the information they need and enhancing the overall work experience.

In addition to improving routine tasks, AI allows companies to better understand and respond to employee needs through predictive analytics. By analysing employee engagement and feedback data, HR teams can proactively address disengagement and retention issues before they escalate. 

This proactive, data-informed approach helps organisations foster a supportive work environment, showing employees that their concerns are acknowledged and valued. Ultimately, AI’s role in employee experience goes beyond automation; it creates a work culture that supports transparency, responsiveness, and continuous improvement.

Balancing Innovation with Responsibility in HR

The discussion also addressed challenges such as prioritising AI integration, managing initial implementation hurdles, and aligning AI tools with employee satisfaction goals. With many employees still feeling unheard, AI has the potential to bridge communication gaps, personalise employee interactions, and address feedback more effectively.

Across all sectors, the focus remains on balancing AI’s benefits with ethical considerations, ensuring data privacy and security are maintained. This responsible approach to AI integration is paving the way for HR to become a more strategic, responsive function that meets the demands of a rapidly evolving workforce.

Leaders emphasised the importance of aligning AI integration in HR with both technological and human-centric approaches. Balancing automation with empathy was another focus, where AI-driven insights support, meaningful human interaction. The key takeaway was about prioritising employee-centric improvements, such as automating routine tasks, to impact daily work and satisfaction directly. Leaders agreed that this approach will allow AI to drive efficiency and innovation while keeping employee experience and organisational goals at the forefront. Hence, with responsible and purposeful AI use, HR leaders can finally create human workplaces that are efficient, responsive, and most importantly human.