HR technology is rapidly evolving, and 2025 could be a tipping point, particularly with the rise of generative and agentic AI. This has been driven by the tremendous growth and use of technology to automate HR operations. While AI continues to evolve, agentic AI represents a giant leap forward beyond traditional AI tools that simply assist. The term Agentic comes from the idea of an "agent" that exhibits autonomy. It implies that the AI doesn’t just respond to commands but can proactively pursue objectives, make decisions, and take initiative with minimal human input, much like a capable assistant.
Powered by advanced technologies like Generative AI, Natural Language Processing (NLP), Large Language Models (LLMs), agentic AI is uniquely suited to augment the workforce more broadly, mimicking human reasoning and interaction to work effectively alongside human employees and function much more like a co-worker would.
Agentic AI could be a game-changer across HR functions. Some examples include:
- Conversational agents that handle initial candidate screenings and answer employee questions, freeing recruiters for more strategic work.
- Functional agents that manage benefits enrollment and leave administration, improving accuracy and efficiency.
- Supervisory agents that help managers monitor performance and give real-time feedback driven by data from the operation.
- Utility agents that personalize learning and development pathways based on employees' individual goals.
Implementing sophisticated AI, particularly agentic AI, presents significant challenges that HR leaders must navigate. According to Mercer’s recent digital article “Heads up, HR: 2025 is the Year of Agentic AI,” connecting agents to company data, systems, and operations introduces significant risks for organizations. While agents can self-optimize and act on their own, this autonomy may leave room for harmful decisions and unintended consequences.
To mitigate these risks, the article states, creating safeguards and keeping humans in the loop will be essential. Beyond the technical and data-related risks, these new tools can bring stress and uncertainty. This stress, in turn, can harm trust, engagement, and productivity within the workforce.
Implementing agentic AI also requires HR teams to rethink processes and roles. While AI can automate routine tasks, it creates room for HR to focus more on areas where human skills matter most, like:
- Talent strategy and workforce planning
- Organizational culture and development
- Employee relations and advocacy
Much of the discussion around agentic AI in HR emphasizes that it is not about replacing staff, but about augmenting their work and enhancing efficiency. By taking repetitive tasks off their plates, AI frees the Human Resource staff to focus on high-impact, strategic work that drives real value for their organizations. However, like any new technology organizations need to lead with a clear understanding of the problems they are trying to solve, prioritize user experience, and stay focused on the human side of work.
HR is in a great position to shape how organizations use agentic AI — keeping workplaces both innovative and human-centered as we head into the future. To lead successful adoption of agentic AI, HR professionals will need to build fluency in AI capabilities, data governance, and ethical risk management. Just as important, they must strengthen their roles as change agents and helping organizations understand the risks and the benefits of these new tools.
ASE Connect
Source: Mercer