Artificial intelligence is being used more frequently in HR, particularly within employee relations, and its adoption is expected to continue growing over the next several years. A SHRM study found that 43% of organizations already leverage AI in HR-related tasks. One result of this shift is a reduced demand for certain HR roles. For example, IBM reportedly laid off approximately 8,000 employees, with many of the cuts occurring in HR, and had already replaced about 200 HR roles with AI agents. In addition, a growing number of AI-powered HR tools claim they can replace frontline HR business partners, employee relations professionals, and other HR roles.

From drafting performance reviews to conducting exit interviews, AI is taking on more traditional HR responsibilities at a lower cost. Because HR is often viewed as a cost center, this approach may deliver short-term savings. Over the long term, however, it could prove more costly than maintaining human oversight. AI is already being used to write job descriptions, handle entry-level recruiting and candidate searches, and analyze compensation and pricing decisions. When used thoughtfully, AI can also help predict benefits usage and streamline open enrollment, potentially improving cost efficiency. Payroll may eventually be part of this evolution, but given ongoing wage and hour complexities, widespread adoption in that area is unlikely anytime soon.

The larger question is how employees feel about this shift. Do they want to interact with AI, or will it simply become accepted, much like automated customer service systems? Survey data suggests that most employees still prefer human feedback and personalized communication, particularly when dealing with sensitive matters such as performance concerns or workplace conflict.

AI is also increasingly being used to intake employee complaints and grievances. Employees may not always communicate clearly or concisely, resulting in lengthy, unedited submissions. This can make it more difficult for HR teams to interpret issues and respond appropriately. Research from Myers-Briggs shows that time spent on workplace conflict doubled between 2008 and 2022, with managers now spending more than four hours per week addressing conflict. This number is expected to increase, especially as managers report feeling unprepared to handle the growing volume and complexity of employee issues. Many HR professionals report feeling overwhelmed as well.

At the same time, Gen Z is becoming the largest segment of the workforce. This generation brings clear expectations around work-life balance, flexibility, and self-advocacy. While they may be comfortable using AI tools, they are also more likely to expect empathy and human connection when navigating workplace challenges.

If employers focus solely on cost reduction and rely too heavily on AI, they risk creating an opening for unionization. Work remains fundamentally relational, and when that is overlooked, a new dynamic can emerge that ultimately costs more than the savings AI provides. Technology paired with the empathy and judgment of HR professionals allows organizations to build stronger workplace cultures. At least in the near term, AI cannot replace the human role HR plays in navigating complex employee relationships.

For this reason, HR professionals must be trained in all aspects of AI, including its capabilities, limitations, and risks. This includes understanding how prompts and responses work, particularly as AI systems move beyond simple rule-based commands and begin learning from data and patterns. When employers view HR solely through the lens of expenses and cost savings, unions are likely to respond. Recent data shows unions winning representation elections at rates approaching 85%.

Sources: Forbes 12/8/25, LinkedIn 5/27/25, People Managing People 11/24/24