The future of work isn’t simply more automated; it’s going to be more collaborative. AI agents are emerging as powerful partners, augmenting human capabilities and creating a more efficient and engaging work environment. By assisting with tasks or those which are more repetitive in nature, these agents empower employees to focus on what they do best: thinking critically, solving complex problems, driving innovation – all while working with colleagues and clients in a more human way. This collaboration between people and AI in some ways makes us all leaders and coaches, directing the activities of our AI “interns” so to speak.
With many organisations globally already exploring some type of AI agents, the business world is excited by the promise of a significant shift towards agentic AI. This trend underscores the potential of agentic AI to drive automation resulting in operational efficiency and business impact. It’s important to note that the term AI agent can be as simple as chatbots/assistants or using generative AI solutions that provide what providers call reasoning or chain of thought (CoT), to systems where multiple agents interact to complete tasks.
So what do we mean by “agentic” and how does that work with generative AI capabilities? For our purposes here we can define agentic as an autonomous AI that is capable of multi-step goal achievement both learning and adapting. Clearly this is a goal that is aspirational in most applications today. If we think of the creativity of generative AI (generating text, images, voice, and video for example) it is then coupled with the ability to act, learn, and make decisions to achieve a goal.
For HR to remain competitive and relevant, it’s crucial to understand and embrace this agentic AI revolution. By automating aspects of work, AI agents can support HR professionals, allowing them to focus on strategic initiatives, talent development, change management, and fostering a more engaging employee experience. This shift promises to enhance HR’s impact on employee engagement, productivity, and ultimately, business success.
However, amidst the excitement, it’s crucial to take a step back and ensure we’re not simply chasing the latest tech trend, as powerful and alluring as it may be. A thoughtful, human-centric approach is essential for successful AI integration in HR. Far from eroding or displacing our human instincts, if it’s done right, AI can enable us to be more human in the workplace. That’s especially crucial for a people-focused discipline such as HR.
Rethinking AI’s role in HR
The integration of AI within HR is undergoing a significant transformation. While the transformative capabilities of generative AI (Gen AI) and AI agents remain undeniable, a shift is occurring from a period of experimentation to a more strategic and measured approach.
Early AI adoption in HR often reflected an understandable “rush to build” mentality. Driven by the allure of new technology, organisations are quick to implement AI solutions, sometimes without clearly defined goals or methods to evaluate success.
However, a growing sense of pragmatism is emerging. Recent research reveals a cautious approach within HR. With only 12% of HR teams actively using AI, compared to 34% in marketing and sales, the function is taking a more deliberate path.
This evolution is crucial for ensuring that AI investments yield tangible value. Organisations are increasingly scrutinising whether AI is the optimal solution for every HR challenge. As such, a more nuanced approach is gaining traction, recognising that a targeted and thoughtful application of AI often leads to better outcomes.
By prioritising well-defined adoption strategies, comprehensive training initiatives and rigorous ROI measurement, HR can use AI effectively. This collaborative approach, where AI and humans work in tandem, will drive transformation and business success. AI will transition from a fleeting trend to a powerful tool in HR’s arsenal, enabling a future of enhanced efficiency and strategic decision-making.
A roadmap for integrating AI agents
To successfully integrate AI agents into HR functions, organisations must prioritise a strategic, approach with clear boundaries around AI governance which includes the guardrails and appropriate places for human-centric decision making. There are three steps to achieving this goal:
- Crafting a vision with people at the core:
Before developing or deploying AI agents, businesses must define their vision. Is your focus on efficiency and productivity improvement, or transformation of your organisation? What specific, discreet tasks or activities (meaning multiple tasks in sequence) can AI agents handle? How will they empower employees and improve the overall HR experience? Start simply and build.
One approach to this is to imagine you are looking to hire summer interns to work in your HR team. While they may have received general training at school, they will need to be directed, coached, and managed – and their work will require approvals. Ask yourself, “What are the activities you imagine these ‘AI Interns’ initially doing?” You wouldn’t let an intern handle particular kinds of tasks without reviewing their work, therefore you wouldn’t let AI tooling do the same without human oversight. This should emphasise the “human-in-the-loop” principle, acknowledging that the first step in using AI agents is based on augmenting human capabilities, rather than replacing them.
Determining the acceptable level of autonomy for AI agents is important, as this will vary depending on the specific task and organisational context. Given the current point of maturity of truly “agentic” agents we mentioned earlier, these tend towards more multi-step goals or tasks. Finally, consider how AI agents can reshape existing business processes to unlock transformative benefits. Use the opportunity to also remake the process while you build a portfolio of agent possibilities from simple to complex
- Building trust through transparent AI agent policies:
Data privacy, security, and ethical considerations are paramount when integrating AI agents into HR. To address these concerns, businesses must establish clear policies that outline how employee data will be accessed, used, and protected by AI agents. Bias mitigation strategies are crucial to ensure fairness and inclusivity in AI-driven decisions.
Transparency is essential in fostering trust and confidence, so employees should have a clear understanding of how AI agents interact with their data and contribute to decision-making processes. For example, at Dayforce, we empower our customers to stay compliant by giving them options to restrict their AI capabilities. By prioritising these principles, organisations can build a foundation of trust and ethical responsibility in their AI initiatives.
- Fostering innovation with AI agent sandboxes:
Create dedicated “sandboxes” – safe, experimental environments where employees can explore AI agent capabilities and applications without impacting core systems or sharing data with unauthorised third-party AI tools (such as LLMs). This hands-on approach empowers employees to identify novel ways to leverage AI agents within their specific roles. Sandboxes also provide a platform for collective learning and creativity, allowing employees to contribute meaningfully to the organisation’s AI strategy.
Upskilling for the AI-driven HR landscape
The transformative power of AI is undeniable, offering automation, autonomous processes, and insightful data analysis. However, a significant skills gap within organisations hinders its successful implementation. In the UK alone, millions of workers lack the necessary digital skills to fully take advantage of AI’s potential. To unlock the full benefits of AI and drive HR innovation, bridging this gap is paramount.
One crucial step is democratising AI knowledge within the organisation.
Investing in comprehensive training programs and establishing clear AI guidelines is essential. These programs should encompass a wide range of topics including privacy and security. Additionally, training should include prompt engineering, teaching employees how to craft effective prompts for interacting with large language models. Finally, ensuring fairness, transparency, and accountability in AI-driven processes through ethical AI interaction training is paramount.
AI agents are here to stay, offering a transformative opportunity for HR. By investing in upskilling initiatives and a human-centric approach, businesses can use AI agents to enhance employee experience, boost productivity and achieve significant positive outcomes.
