2025 will be the year that human resources (HR) professionals will get real about what artificial intelligence (AI) means for their function, with a view towards moving beyond inflated expectations towards considering how AI tools can help them deliver tangible business outcomes.
That’s according to Sonia Tshabalala, regional people director at Sage Africa and Middle East, who says that there is a growing understanding that AI in HR means ‘augmented intelligence’ as much as it means artificial intelligence. Rather than replacing the human touch, AI should be used to support and assist humans across the business—including in the HR function.
“AI is already playing an invaluable role in human resources, helping HR professionals to streamline processes ranging from screening candidate CVs and onboarding employees as well as to generate data-driven insights to the support decision-making processes about recruitment, employee experience and more,” says Tshabalala.
Amanda Cusdin, chief people officer at Sage says: “As HR professionals become better acquainted with traditional AI tools and look towards the potential of new generative AI and large language model solutions – their focus will shift beyond using AI to save money through automation. Instead, they will look at how AI can support strategic decision-making and enrich the employee and candidate experiences.
A crucial part of this shift is the acknowledgement that AI isn’t a silver bullet. “Following the popularity of ChatGPT, but especially over the past year, we’ve seen a slew of AI-powered HR products emerge across industries and geographies – leading to an industry that is expected to be worth nearly $15 billion by 2031,” Cusdin adds.
“In the coming year, this hype cycle around AI in HR will start to sober. That is not to say that the usage of AI will decrease. It will continue to be used, experimented with, and baked into existing and new products and processes. But as development and usage continues, businesses will start to realise that AI is but a means to an end, and not the end goal itself.”
Tshabalala says that HR leaders will become increasingly sensitive to the ethics and privacy concerns surrounding powerful HR tools as candidates and employees push back against impersonal interactions with organisations. “AI has a powerful part to play in automating routine processes and enriching insights from data,” says Tshabalala.
“A new generation of GenAI tools is opening up new possibilities, such as streamlining HR-related content or documentation or answering complex employee questions via virtual assistants. However, HR leaders also know that the ‘human’ remains central to their function.
“They will work hard to ensure that their AI systems automated processes are free from algorithmic bias and to provide transparency around how employee and candidate data is used in AI processes. In addition, companies will be mindful of the growing fear in the workforce that AI is being used to automate people out of their jobs.”
However, Tshabalala says that AI when used wisely, can help HR personalise experiences, understand emotions, and anticipate user needs through advanced algorithms and learning capabilities. This makes engagement with HR systems and processes – for both HR and employees – feel more intuitive and human-like.
“The magic of AI lies in its ability to adapt and interact in ways that resonate with human behaviour and needs,” says Tshabalala. “But while AI creates significant efficiencies in HR processes like recruitment, performance management, and employee engagement, it is no replacement for human involvement.
“AI isn’t the solution to every HR challenge, but implementing ethically, and strategically will free HR up to be less process-driven, and more people-focused. But the human expertise and empathy remain central, with HR leaders’ years of experience essential in designing people-centric HR experiences and making smart decisions based on AI outputs,” she concludes.