Companies are increasingly investing in artificial intelligence to automate routine human resources tasks, prompting a shift in workforce strategy that favours growth and marketing roles over administrative functions.
IBM announced that it has replaced around 200 human resources positions with AI systems that now manage about 94 per cent of repetitive tasks such as payroll processing and handling employee inquiries, according to company disclosures. The move has allowed the tech giant to reallocate staff to higher-value roles in software engineering, sales, and marketing.
“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up, because what it does is it gives you more investment to put into other areas,” IBM CEO Arvind Krishna told The Wall Street Journal.
The trend is not limited to IBM. Workday and Zoho People are embedding AI into their platforms to streamline functions such as talent acquisition, performance tracking, and employee engagement.
Other companies, including HireVue and Oracle, are deploying AI-powered tools to automate video interviews and workforce planning. Platforms such as Eightfold AI and Paradox use machine learning to assess candidate suitability and schedule interviews, reducing time-to-hire and minimising human bias.
Meanwhile, established players like SAP and ADP are enhancing their HR software suites with generative AI capabilities that handle tasks ranging from regulatory compliance to internal career development.
This realignment of corporate resources is also fueling increased investment in marketing and customer acquisition. Analysts say organisations are prioritising growth initiatives that require a blend of human creativity and technology.
According to a McKinsey & Company report, 92 per cent of organisations plan to increase AI investment in HR functions over the next three years while also expanding marketing and sales teams to pursue new market opportunities.
However, the rapid deployment of AI tools is raising concerns about job displacement. Experts warn that widespread adoption could force millions of workers to switch careers without adequate support.
The World Economic Forum estimates that while AI will eliminate about 92 million jobs globally by 2030, it will also create 170 million new roles, resulting in a net positive. But this transition, the WEF says, will require companies to prioritise workforce development.
Its Future of Jobs report found that 77 per cent of companies plan to reskill or upskill employees between 2025 and 2030 to prepare them for more advanced, AI-integrated roles.
