HR finds itself facing an existential challenge – not a threat of extinction, but a profound identity crisis. The cause of this crisis has a name: generative AI and autonomous agents.

Once seen as the guardians of people strategy and culture, HR leaders are now under intense pressure from CEOs and CFOs to automate, deliver more with less, and cut costs.

The message may be wrapped in language about “productivity” and “efficiency,” but many in HR hear the subtext loud and clear: do more, with fewer people, and fast.

Yet this moment of reckoning could be HR’s greatest opportunity – if it seizes the reins and redefines its role in an AI-driven workplace.

HR is more than just process plumbing. It owns the people lifecycle, from recruitment to development, from performance to succession, from pay to wellbeing.

But as transactional workflows and administrative processes become increasingly automatable, the profession is being forced to rethink its value proposition.

In truth, HR’s “pipes” do need upgrading. Much of the function’s day-to-day work – form-filling, policy enforcement, onboarding logistics – is ripe for reinvention. And AI agents are proving more than capable of picking up the slack.

The age of the HR Agent

AI-powered agents are no longer a Silicon Valley fantasy. From virtual recruiters that screen CVs and schedule interviews, to digital coaches that personalise learning and development, the capabilities are advancing really fast.

In fact, according to The 2025 State of People Strategy Report, 51% of high-performing HR teams are already experimenting with AI, compared to just 18% of lower-performing teams. For example, Chipotle rolled out an AI system to automate hiring workflows – so effective that the CEO called it the company’s top “revenue driver”.

And the numbers back it up:

• 94% of HR teams using AI in talent acquisition said it met or exceeded expectations
• 96% saw positive outcomes when using AI to identify promotion-ready talent
• 56% now use AI to write job descriptions
• 44% use it for employee handbooks

Estimates suggest AI could shoulder between 50% and 75% of all current HR tasks. It’s not just coming; it’s already here.

The implications are enormous. As AI agents become more proactive, surfacing employee sentiment, coaching managers, or answering benefits queries, HR’s traditional silos start to dissolve. In this landscape, the HR professional morphs into a “Superworker”: part strategist, part technologist, part ethicist.

But this requires urgent action. “If HR fails to rapidly increase its level of maturity,” warns analyst Josh Bersin, “someone could simply reduce its staff” – what he calls the “Elon Musk approach”. The tools may not be fully ready, but the executive expectations already are.

To stay ahead of the curve, HR teams must:

• Fix the foundational “plumbing” – streamlining outdated processes
• Collaborate closely with IT to build or buy AI systems that fit their organisation’s context
• Redesign how the HR function operates, rather than waiting for vendors like SAP or Workday to catch up.

In other words: don’t be reactive. Be the architect of your own transformation.

What AI can do (and should)

Think of AI agents as relentless, reliable teammates – excellent at repetitive work, lightning-fast at data analysis, and surprisingly helpful when supporting strategic tasks.

As performance consultant Faye Almeshaan puts it, “It’s like having a smart, reliable teammate who doesn’t sleep.”

AI is already transforming specific HR domains:

• Performance management: Analysing reviews, identifying trends, and recommending improvements
• Employee queries: Instant responses to FAQs like PTO, policy questions, and eligibility
• Workforce planning: Monitoring workload data to flag burnout risks and rebalance resources
• Compensation: Automating time-consuming tasks like generating total rewards statements.

And there’s more to come. AI agents will soon evolve from mere doers to collaborators—coaching humans, orchestrating workflows, and making micro-decisions in real time.

What AI cannot (and must not) do

Despite all the hype, AI cannot and should not make final calls on hiring, firing, promotions, or sensitive workplace issues. The risks are too great, and the nuance too human.

“You need to validate what AI is doing before relying on it,” says Almeshaan. “Just like we double-check Excel formulas, we need to validate what AI is doing, especially in HR where decisions affect people’s lives and careers.”

AI is notoriously poor at delivering bad news, addressing grievances, or managing conflict. It lacks empathy, intuition, and context: all of them, essentially human qualities. And relying on it blindly invites not just reputational harm, but potential legal trouble.

As Lorena Gonzalez, president of the California Federation of Labor Unions, warned, “No worker should have to answer to a robot boss when they are fearful of getting injured on the job, or when they have to go to the bathroom or leave work for an emergency.”

In reality, AI will not replace HR. But HR that fails to adopt AI may very well be replaced.

The future belongs to the bold

The future belongs to professionals who embrace AI as a co-pilot, not a competitor. Those who invest in AI and data literacy, develop ethical frameworks for its use, and focus on uniquely human strengths – empathy, judgement, creativity – will thrive.

Institutions like the Aon Learning Center advocate for a “human-first” approach, where AI amplifies what people do best. AI should make work more human, not less.

This means letting AI handle the paperwork, so HR can focus on people work; using AI insights to shape strategy, not just streamline operations; and training HR professionals not just in soft skills, but in how to manage and supervise intelligent systems.