Are HR Directors on the verge of being replaced by AI?

Derek H. Suite, M.D.

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An HR’s worst fear coming true

When Jenny, a high-level HR executive, asked me to see her regarding an anxious employee she was worried about, I thought she merely wanted me to consult on yet another case of performance anxiety at her firm. To my surprise, Jenny closed the door, asked me to sit, and whispered that in fact, she was the client. “What’s going on?“ I asked, somewhat puzzled because Jenny was one of the most well-adjusted, sharp, and well-balanced executives I know.

“You won’t believe this, but I am really concerned about these robots that are going to eventually take over my job– and it’s driving me nuts,” she said, in hushed tones. As a psychiatrist, observing her behaviors, I was already processing if Jenny was reality-based with the talk of “robots taking over,” but after giving her some space to vent, I learned that she was sharing a very real concern: AI.

AI software replacing the recruitment process

Basically, the firm had recently begun using AI recruitment software, and it was literally completing assignments in hours that Jenny’s teams would have taken weeks to complete—and the bosses were raving about the AI’s excellent talent acquisition, recruitment, onboarding, training, and data-driven decision-making outcomes.

“You should have heard them complimenting the AI as if it was a human being,” Jenny lamented. “I just know this could be the beginning of the end for me and many of us around here –how are we supposed to compete with this level of efficiency? “

AI apprehension a real thing

Jenny’s AI Anxiety is not unique. Though only 6% of HR leaders reported AI-related job displacement in a 2024 SHRM survey, fears among HR’s rank and file across the country continue to grow as the rapid advancement of AI has stirred growing concern. These fears are not unrealistic because companies are always looking to streamline costs and improve the bottom line, according to Jenny. “Remember what happened to customer service reps and toll booth operators,” Jenny remarked. “No one is safe.”

Almost 50% of HR departments are already using AI

To Jenny’s point, a recent survey by Littler (2004), showed that nearly 50% of organizations are already using generative AI for HR tasks, and the investment bank, Goldman Sachs, recently estimated that as many as 300 million jobs could be replaced by generative AI. IBM also publicly estimates that 1/3 of its workforce could be eventually replaced by AI. “It’s frightening to think about what’s ahead as AI continues to grow, and we have no control over the process, “ says Jenny.

But the news is not all doom and gloom. The reality of AI’s impact on HR is more complex and nuanced than what meets the eye, some experts say.

IBM also publicly estimates that 1/3 of its workforce could be eventually replaced by AI.

AI here to replace or transform?

As part of the therapeutic homework Jenny and I pulled articles and research on AI and HR, and we were pleasantly surprised. Interestingly and perhaps ironically, the very name of the industry is “Human Relations”, which is potentially suggestive of a positive and collaborative pathway forward.

Studies almost uniformly show that AI is likely to transform rather than replace HR.

AI still needs help from you

While AI is undoubtedly proficient at completing and handling the more routine and administrative-driven HR tasks and can do some data-driven decision-making and analytics, it does not have the “human” judgment, emotional intelligence, ethical decision-making, intuitive and critical thinking that HR pros often use to provide expert and compassionate guidance and nuanced navigation of volatile, uncertain, complex, and ambiguous (VUCA) situations.

The human touch vs. AI

Moreover, AI, though exceptionally proficient, cannot replace the “human touch” (and the use of nonverbal cues) so critical in HR for building genuine goodwill, addressing fears, resolving conflicts, and nurturing and building trusting relationships with employees in face-to-face interactions in the workplace—a predominantly social environment.

HR professionals also have a unique ability to create a sense of community, connectivity, cohesion, and team culture within the workplace—and, at the same time, make an employee feel individually heard, understood, and acknowledged.

How to form an alliance with AI

Armed with the positive information gleaned from our discussions, Jenny and I explored a frameshift in her thinking.

What if she could form a “constructive connection” with AI, and conceive of it as providing unlimited support by freeing her to handle more value-added, strategic, and complex tasks and responsibilities requiring human judgment input and oversight?

And what if AI’s predictive analytics and insights for workforce planning, personalized development programs, and employee engagement retention could support Jenny’s decision-making and strategic thinking moving forward?

Interestingly, the research we did showed that nearly 50% of HR professionals expressed unfamiliarity with AI and have not integrated AI into their work. This could indeed create xenophobia–a known relationship killer.

Embrace. Adapt. Upskill.

To thrive in this ever-growing AI landscape, Jenny realized that she, and her colleagues, would need to develop some new skills around AI literacy and technical understanding, ethical AI governance and, at the same time, bolster her data analysis and interpretation skills, as well as emotional intelligence, strategic thinking and problem-solving skills.

Taking a proactive approach to “embrace, adapt, and upskill” in Jenny’s case brought her immediate relief from the suffering caused by her silent AI Apprehension and returned a sense of job security. She no longer perceived and resisted AI as a competitor but embraced it as a strategic partner that would amplify her success and efficacy as an HR executive –an approach she is now encouraging colleagues to follow.

A peaceful co-existence

A few weeks later, I had a follow up lunch with Jenny, and she was in great spirits. “Arthur AI” (her newly named companion) and she had formed a close bond. “I can’t believe how connected we are,” said Jenny with a chuckle.

It was clear that she had moved past merely accepting the technology to forming an intimate alliance. Jenny shared that she and “Arthur AI” had recently pioneered several critical, data-driven polices, including a successful, evidence-based employee mental resilience program, that aligned with her company’s mission to cater their employees’ diverse needs.

The future of HR and AI

“Arthur AI” had recently pioneered several critical, data-driven polices, including a successful, evidence-based employee mental resilience program, that aligned with her company’s mission to cater their employees’ diverse needs.

When I commended Jenny on her innovative use and integration of AI around employee mental wellbeing and professional development, she quickly responded, “Oh, this is just the beginning! Arthur and I are working on some big ideas I have for near future.”

Is HR on the verge of being replaced by AI?

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Who is Dr. Suite?

Derek H. Suite, M.D. is a member of the Academy of Occupational and Organizational Psychiatry and a board-certified psychiatrist who consults for elite sports, business, and entertainment entities. He is the Founder & CEO of Full Circle Confidential Wellness, an award-winning employee mental health and performance wellbeing resource.