According to 86% of respondents, AI has heightened the level of competition in business. This suggests that businesses are leveraging AI to optimise operations, innovate, and to keep up with more technologically advanced competitors, underscoring the importance of AI adoption for survival and growth. The SHRM India report sheds light on AI’s transformative role across HR functions, highlighting its potential to enhance operations and workforce efficiency. Embracing AI will require organisations to invest in learning, innovation, and inclusivity, empowering employees to gain a holistic view of talent management, skill distribution and potential risks within the workspace.

The report on HR priorities and AI in the workplace underscores that AI is evolving beyond simple automation and functioning as an augmentation tool that empowers HR professionals with real-time insights, predictive analytics, and personalised experiences for employees.

Here are a few key findings that demonstrate AI's increasing role in HR:

• 70% of HR professionals believe AI will redefine HR functions while equipping teams with new skills.
• 57% of respondents anticipate that Generative AI will reduce manual workload, shifting HR’s focus to strategy and innovation.
• 31% of organisations have already integrated AI into their HR functions, with the IT/ITeS sector leading the way.
• Recruitment, training and development, and performance management are the top HR functions where AI is being widely utilised.

While AI’s benefits in HR are evident and clear, the report also highlights significant challenges in adoption. Data privacy, integration with existing systems, and resistance to change remain key hurdles for organisations looking to embrace AI; 59% of HR professionals express ethical concerns about AI’s role in decision-making, emphasising the need for a robust regulatory framework and responsible AI.

To fully leverage AI’s potential, the report suggests that organisations must focus on ethical AI implementation, invest in workforce reskilling, and develop comprehensive AI policies. The future of HR lies in blending AI-driven efficiency with human-centric leadership, ensuring a balanced, inclusive, and innovative workplace.

As the global workforce continues to evolve, AI’s role in HR will only become more significant. Organisations that proactively embrace this transformation will be well-positioned to attract top talent, optimise workforce management, and drive long-term business success.

This article is authored by Achal Khanna, chief executive officer, SHRM India, MENA & APAC.