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Support/Replace? The future of tech in HR

by Leigh Lacy | Jul 30, 2025 | HR Tech and Data

As a disruptive influence technology (and AI in particular) is second to none. It is also central to the future of tech in HR. Head of Content, Simon Kent consults with some of The HR World’s technology partners about what might happen next.

HR is at the centre of significant and fast moving technological change. This is not just a question of how technology is impacting the function, but what AI, automation and more might do for the wider business. HR is faced with a twin challenge: to manage the impact of technology on their own work and to manage its impact on the work of everyone else.

Not only is change significant and far reaching, it is coming at a pace. According to Paul Bauer, Head of Content at Cezanne, the next twelve months will see a wider adoption of AI-powered HR tools. “It’s no longer hype,” Bauer says, “it’s becoming a very real, very practical part of working life – and for HR in particular, AI is already starting to drive some genuinely transformative changes. We saw it happen with HR tech and automation over the past decade. AI is the next logical evolution, and it won’t take long for the impact to be felt.”

Bauer expects this impact to fall in two ways. First, there will be yet more opportunity for HR to drop the admin side of their work and concentrate on delivering clear value to their businesses: “It’s about giving HR teams back the time to focus on people-first, strategic work,” says Bauer, “the things that actually make a difference to culture, engagement, and business growth.”

The second area where Bauer sees an impact is on HR’s own skill set. The use of solutions such as ChatGPT will speed up research, improve communications and could therefore help HR make more informed decisions. “Put simply, AI won’t replace HR, but HR professionals who harness AI will have a serious edge,” he says. 

Skepticism and reservations

But while the potential may be there, it is clear that unlocking the full value of AI and related technologies is going to require work and consideration. There is real skepticism and often justified reservations around AI and trust in these solutions needs to be earned – which is the work of both the venders and the employers who deploy such solutions. The idea that AI will simply take jobs is a clear part of this suspicion or the type of view HR and others need to manage going forward.

“The only way AI will deliver lasting value is if it’s introduced with transparency, care, and a clear purpose,” says Bauer. “For HR, that means tools that support people, not sideline them. It means being crystal clear about how AI works, where it’s being used, and what guardrails are in place.”

Impact on early careers

One example of how AI can be used to replace or support people comes from Sian Wilson, Executive Director, Commercial at Day One. Wilson is particularly concerned about the impact of AI on early careers with employers. She cites the case of KPMG who have cut graduate intake by 33%, appearing to view AI as a replacement for early career roles rather than as a complement to human talent. “When KPMG announces a significant reduction in its graduate program, citing AI as a factor, it raises fundamental questions about how organisations view their talent pipeline,” she says. “This approach reflects a shortsighted understanding of both AI’s capabilities and the essential role that early career positions play in organisational health.”

Wilson worries that if AI replaces entry-level jobs then where will the next generation of senior professionals come from? “Early career roles involve more than just completing tasks,” she says, “they provide opportunities for professionals to develop skills, gain business knowledge, and build industry understanding not typically covered in academic education.”

As routine tasks become automated, the uniquely human skills become more valuable, not less.

As an example of a business where AI has been introduced alongside early careers Wilson gives the example of Accenture where junior consultant roles have been re-imagined by pairing new graduates with AI tools that handle routine analysis and data processing. “Rather than reducing headcount, this approach allows junior staff to focus on developing higher-order skills from day one,” she explains.

To some extent the influence of AI in the workplace is highlighting where the real value of human employees lie: “As routine tasks become automated, the uniquely human skills become more valuable, not less,” notes Wilson. 

She goes on to say that the immediate future will see a contrast emerge between organisations that view AI as just a cost-cutting tool and those that leverage it as a talent multiplier. “The winners won’t be those who simply replace humans with algorithms but those who thoughtfully integrate AI in ways that amplify human potential at all career stages,” she says. “The future belongs to organisations that understand that AI at its best doesn’t replace humans – it makes us more human by freeing us to focus on what we do best.

“It is an absolute game changer in the growth of SME’s where early careers may not have always been front of thought,” she says. “Now is the time to re-prioritise early careers and AI together as a winning combination.”

HR continues professional trajectory

While change may be challenging to take on board and manage, what is encouraging is that technology promises to help move HR towards an increasingly professional role. Tali Sachs, Senior Content Marketing Manager, HiBob, agrees with Bauer that administration and low value work will be less of a concern for HR in the future and that the function will become increasingly important for companies as a result: “As it matures, forward-thinking HR tech is becoming a foundational part of the business tech stack for companies of all sizes,” she says.

However, Sachs also believes the most powerful HR tech does more than streamline operations. “It supports growth for everyone across the business, from individual contributors and people managers to the C-suite, and across various industries like manufacturing, retail, and tech,” she says.

“Looking ahead, we’ll see HR tech driving company-wide self-service, identifying real-time insights for faster, more intelligent decision-making, and fuelling L&D programs that help people and businesses stay competitive,” she says. “It will help organisations run leaner, smarter operations that deliver higher output and quality with the teams they have today.”

AI – the power behind the system

Oriol Pesa, Head of Global Partners at Factorial is adamant that AI is a critical part of the future of HR technology. He doesn’t see this as being a radical change in the way things are done, just that AI will inevitably power systems in a smarter, more intuitive and useful way. “Over the next year, HR teams will move away from bloated tool stacks toward integrated systems that reduce complexity,” he says. “AI will play a key role in simplifying tasks and untangling inefficient workflows. The most effective AI in HR will be embedded into systems, working in the background like a copilot that anticipates needs before they arise.”

It’s about leveraging technology to reduce admin workload so teams can focus on what matters: their people.

Factorial are already introducing AI copilots to support HR teams with meaningful, time-saving assistance – instantly finding key documents, drafting routine responses, proactively flagging payroll or time-off discrepancies. “This isn’t about replacing HR professionals,” emphasises Pesa, “it’s about giving them a head start each day. It’s about leveraging technology to reduce admin workload so teams can focus on what matters: their people.”

Pesa also wants to see all HR departments benefit from this technology, regardless of size. Factorial are already building a platform that brings enterprise-grade intelligence to teams of all sizes, with tools that are powerful yet easy to adopt.

Encouragingly there is no sense here of technology for the sake of technology or change occurring just because it can. “HR tech is changing in a more thoughtful and practical way,” asserts Pesa. “It’s bringing real-world usefulness and tools that empower teams rather than overwhelm.” As Pesa concludes if there’s one thing HR leaders don’t need it’s more complexity. To that extent the creation of systems that work, and that help HR adapt quickly will always be welcome.

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