By fostering human skills alongside artificial intelligence, organisations can better prepare their workforces for success – Pete Humphreys explains
The integration of artificial intelligence (AI) into the people profession has become crucial in order to remain competitive. As candidates and employees increasingly embrace AI-powered tools, Human Resources (HR) departments must swiftly adapt to remain relevant and effective. This shift presents both opportunities and challenges, particularly in talent management.
The most successful HR departments will be those that strike the right balance between leveraging AI’s analytical power and maintaining the human touch
The increase of AI in the people profession
The adoption of AI in people operations has been nothing short of revolutionary and, as Gartner points out, 76% of HR leaders believe they may be left behind if they do not implement AI into their organisational strategies in the next 24 months. As we move through 2025, now is the time to take the next steps!
Recruitment processes
It’s no surprise that recruitment processes have evolved and no longer look the same as before. Tasks such as CV screening, candidate matching and even initial interviews are just some of those AI-powered tasks employers are choosing to adopt, and 38% of HR leaders are trialling and/or implementing GenAI, a 19% increase in just six months! (Gartner, 2024)
Employee engagement
AI is also significantly shaking up employee engagement and retention strategies and, as Superworks shows, approximately 40% of HR departments are now using AI to analyse employee feedback through surveys, emails and chat experiences. Interestingly, Microsoft has used AI to analyse employee feedback and engagement data which resulted in a 15% improvement in overall employee satisfaction (Cubeo.ai, 2024).
Performance management and training
AI-driven performance management systems are becoming increasingly common and have positive outcomes for organisations. General Electric (GE) use of AI to analyse employee performance data and provide personalised feedback, has led to a 10% increase in employee productivity (Cubeo.ai, 2024).
The above insights showcase just how powerful AI can be in terms of utilisation and adoption of new processes; after all, 2025 seems to be set to focus on change. However, HR practitioners should take heed of their own skills’ development to successfully navigate the trending era of AI.
Critical skills for professionals
Refining the following critical skills to effectively harness the power of AI should underpin HR department strategies this year:
1. Problem-solving and decision-making will require us to be adept at interpreting AI-generated insights and translating them into actionable strategies.
2. The ability to define the scope of AI projects and critically analyse their outcomes is crucial for successful implementation.
3. Understanding of the broader business context to ensure AI solutions align with organisational goals.
4. Essential human skills such as empathy, creativity and emotional intelligence remain irreplaceable and must be cultivated alongside AI proficiency.
Challenges and opportunities
While AI enhances the speed and quality of people department deliverables, there are also several challenges companies will need to address.
AI cannot replicate key skills such as:
- Building relationships and managing diverse stakeholder interests remains a uniquely human skill.
- Professionals must develop their personal brand to gain trust and support for AI-driven initiatives.
- Navigating organisational change, especially in the context of AI adoption, requires nuanced human understanding.
- Translating complex AI recommendations into clear actions for non-technical employees is crucial.
However, human skills such as those discussed here are in decline, especially within the younger pool of talent (DBL, 204).
‘Humans first’ approach
This poses a significant opportunity for change which I strongly recommend for HR practitioners to consider in order to achieve the best outcome for their organisation:
- Review their workforce’s human skills with the right assessment tools.
- Address the gaps with thorough development plan, and then…
- Implement AI to future proof their business.
Although it’s obvious to adopt the ‘humans first’ approach, many companies still fail to do so in favour of rapid investments in AI technologies. Pivoting this will set businesses apart. Additionally, the alignment of AI investments with broader business objectives will ensure a progressive edge in today’s dynamic HR sector. Ethical considerations and transparency must be the turning cog of the well-oiled AI implementation plan.
AI in 2025 and beyond
This year, we can expect several trends that will shape the AI landscape in HR.
We are likely to see a surge in jobs related to ‘AI transformation’, with teams responsible for choosing AI tools and building workforce strategies to keep organisations agile and productive.
AI will also enable companies to tailor approaches to employee development and engagement resulting in personalised employee experiences based on collected data. This could, for example, lead to addressing absenteeism.
There’s a high chance that AI will improve predictive capabilities in areas such as workforce planning, performance management and retention strategies, with companies able to leverage analytics to reduce employee turnover.
Nonetheless, the emphasis will remain on ethical use of AI and human skills within an AI driven environment.
The path forward
The AI revolution in HR presents a wealth of opportunities for organisations to enhance their talent management practices. By fostering essential human skills alongside AI adoption, organisations can maximise the value of their technological investments and create a workforce that is well-equipped to thrive in the AI-enhanced future of HR.
As we navigate this transformation of the workplace, it’s crucial to remember that AI is a tool to augment human capabilities, not replace them. The most successful HR departments will be those that strike the right balance between leveraging AI’s analytical power and maintaining the human touch that is so essential to effective people management.
Calling upon specialists in human skills development will become the norm for progressive companies that are tuned in to their workforce’s needs, enabling them to thrive and the business to grow.
Pete Humphreys is CEO of Development Beyond Learning
