HR Must Introspect and Transform

Rise of AI and its Implications

Major technology companies have in recent weeks laid off thousands of employees as a result of artificial intelligence (AI). As that technology automates functions and processes, many roles in companies are disappearing.

For business leaders and talent managers, the rise of AI presents a conundrum. As roles and jobs disappear, such executives have to lean on AI to improve the skills of their teams struggling to stay relevant.

Automation is disrupting legacy information technology services and AI bots are replacing human coders on a mass scale. More than 150,000 tech professionals were laid off in 2024 globally, according to various estimates. More than 50,000 were in the first five months of 2025. Microsoft, Google, Amazon, and CrowdStrike are among companies that have laid off thousands as part of sweeping restructuring efforts. While traditional back office services shrink in India, hiring is increasing at global capability centres (GCC). But even among GCCs, AI will temper the intake of IT professionals. Other industries are witnessing similar changes. While the number of jobs is shrinking, many other role descriptions are changing. AI is transforming job profiles across various sectors and an estimated 19 million jobs are at risk.

Even the role of human resources (HR) itself is being transformed by AI. Talent managers are as impacted by AI as professionals in tech companies. From in-person hiring and selection process, talent managers have moved decisively to AI-based systems.

A report by US-based Society of Human Resource Management (SHRM) highlights the new paradigm that HR managers face. “Technology is not a barrier — it’s an enabler. As SHRM research shows, AI combined with human intellect delivers significantly better ROI (return on investment) for organisations. The future belongs to those who adopt technology to simplify jobs, not eliminate them. While machines can enhance efficiency, it’s people who bring purpose. At SHRM Tech, we champion this synergy where innovation empowers, not replaces, the workforce,” says Achal Khanna, Chief Executive Officer of SHRM India, APAC & MENA.

According to SHRM, Indian companies are using AI for three HR functions: recruitment, training and development, and performance management. The three challenges observed when implementing AI in HR across industries are integration with existing systems; resistance to change, and lack of technical expertise. “In India, HR professionals have been early adopters of AI, particularly in talent acquisition, where AI-powered tools are being utilised to source, recruit, evaluate, and communicate with candidates more efficiently. Within organisations AI-driven solutions are already streamlining operations by automating repetitive tasks, enabling data analysis, and supporting decision-making processes,” says SHRM’s India report. Another report by SHRM Singapore says that HR teams will not increase in tandem with the growth of business or size of their company.

Companies across the world are redrawing their business models and their worker and workplace profile are changing consequently. Enterprises are hiring fewer employees and are increasingly reliant on part-time workers. Employees are no longer bound by being in their office all the time. Despite the pushback against work from anywhere, flexible options will remain.

It is clear that as companies evolve, HR professionals will have to upskill themselves in order to help their own organisations. In most companies, HR teams will shrink as many of their tasks will be conducted by AI agents. IBM has laid off a couple of hundred HR professionals already.

HR professionals will manage fewer people and that too by using technology. 

As a result, they will have to change their skillsets and job profiles. While HR leaders deploy generative AI and related technologies for their organisations, they must also look inwards at their own roles. HR professionals will have to face transformation in their own roles as most of their work is automated. From being process managers, they will have to focus on enterprise culture. Instead of people managers, they will have to become HR technology managers.

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