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Is the boom in HR coming to an end?

David T.

17 Mar 2025

The HR profession has experienced significant growth over the past 15 years.

This has been both in terms of its size and its strategic importance within organizations. In the UK, the number of HR managers and directors increased by 66% between 2011 and 2019.


From 2011 to 2021, the HR profession grew by 42%, compared to just 10% for the general workforce in the UK.


This could all be about to change. By 2030, AI is expected to significantly impact the HR and recruitment industry. While it is difficult to predict an exact number, some estimates suggest that AI and automation could replace or transform a substantial portion of HR and recruitment jobs, especially tasks that involve repetitive processes, data analysis, and screening.


Overall, predictions suggest that AI could automate up to 30-40% of HR-related tasks by 2030, this could wipe out the gains in HR related employment enjoyed over the last 15 years. However, the degree of job replacement depends on how rapidly AI technologies are adopted and the specific needs of organizations.


With the likes of IBM and Microsoft launching AI agents in 2025 and AI agent platforms already successfully operating AI agents for HR administration, the disruption to the profession has already begun.


By the end of 2025, there is the real prospect of deployable AI HR agents beginning to replace administrative HR employees, with some substantial financial savings as a major benefit.


Here is a breakdown of some areas within HR and recruitment that could see significant automation:


  1. Recruitment and Screening: AI can automate tasks like resume screening, candidate sourcing, and initial assessments. Platforms already use AI to match candidates with job descriptions based on data, which could reduce the need for recruiters to spend time on manual screening.


  2. Interview Scheduling and Communication: Many administrative tasks like scheduling interviews, sending follow-up emails, and answering candidate inquiries can be automated with AI chatbots or virtual assistants.


  3. Employee Onboarding: AI tools can streamline onboarding processes by automating document management, training scheduling, and providing employees with necessary resources.


  4. HR Data Analytics and Reporting: AI-powered analytics can help HR departments make data-driven decisions regarding employee performance, retention strategies, and workforce planning, automating much of the decision-making processes.


While AI will likely take over many of the administrative tasks, human involvement will remain crucial for high-level decision-making, strategic planning, and building relationships with employees. AI is more likely to augment HR professionals’ work rather than fully replace them.


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