AI in HR: Action Items for Leaders

OCT 20, 2025

HR leaders remain deeply curious about AI as it continues to dominate strategic conversations. There is no doubt that AI will have a truly transformative effect on HR—and on everything. As we heard at the Charter Summit in New York this month: similarly to how the spreadsheet completely changed how Finance operates, AI will fully restructure the way teams operate.

This doesn’t mean AI has to be scary or overwhelming for HR leaders. Although it may seem like every company is seamlessly integrating AI, the reality is that no organization has fully mastered it yet.

While AI and machine learning within HR processes jumped by 90% last year, formal AI adoption within HR processes is expected to remain less than 50% going into 2026 according to Sapient Insights Group. And among S&P enterprises using gen AI, only 27% have organization-wide adoption, according to a 2025 S&P Global report.

AI in HR was recently a focal topic at an Inspire HR salon—a gathering of forward-thinking HR leaders who discuss the biggest challenges and opportunities shaping the future of the function.

We were thrilled to welcome Ian O’Keefe as a featured speaker, bringing deep expertise at the intersection of HR transformation, analytics, and AI. Ian is the Founder and CEO of ikona Analytics and a globally recognized People Analytics and Data Strategy leader with 20+ years at Amazon, JPMorgan Chase, Google, American Express, and others.

The salon began with Ian outlining how the rise of generative AI is reshaping the HR operating model and accelerating the need for horizontal, data-driven ways of working. He encouraged HR leaders to view AI not as a quick fix, but as a long-term shift requiring new wiring, sensors, mechanisms, and practical entry points to drive meaningful change. These are the highlights and takeaways to help every HR leader become confident in exploring AI.

Slide of key points about AI in HR

Key Themes on AI and HR

The Pace of Change: We’ve Seen This Movie Before

Ian compared today’s AI boom to the dot-com era. Venture capital is flooding into startups, valuations are high, and the hype is intense. The early internet transformed workflows like moving I-9 forms from paper to web forms; AI is doing the same today.

We are at the front end of a 15–20 year arc. Ian encourages HR leaders to take a measured approach, and not feel like they should be doing everything AI all the time. Instead, experiment carefully, pace the change, and learn as you go. The takeaway: This is a long-term shift. Build capabilities thoughtfully.

The HR Operating Model Must Evolve

Traditional HR is organized by Centers of Excellence, for example: talent acquisition, talent management, compensation, and operations. However, this structure does not fit when it comes to data, analytics, AI, and employee experience—all of which cut horizontally. HR has to shift models to one that reflects how work gets done in the age of AI. Ian suggests organizing around the following three core competencies:

Wiring: How systems, teams, technology, and leadership expectations are connected across silos.

Sensors: Data and visibility into how work actually gets done. Most HR orgs have less than half the information they need. For example, succession planning often relies on manual PowerPoint and subjective judgment.

Mechanisms: Not just meetings, but decision-making systems with clear inputs, data inspection, outputs, and accountability. Mechanisms create leadership discipline and drive outcomes.

HR must become more horizontal, data-enabled, and accountability-driven.

Getting Started with AI and Transformation

We speak with leaders every day who are inundated with AI anecdotes, news articles and imperatives from the leadership team, but struggle to determine just where to start. Ian offers some practical guidance, including:

Rethink “process-first” mindsets. Start with workflows, activities, and units of work—not just roles or skills.
Focus on work charts, not org charts. Org charts show hierarchy; work charts reveal how work actually happens across functions.
Start with one flow. Onboarding is a great example because it crosses multiple departments, systems, and processes. Going deep on one workflow teaches you how to scale.
Use agile thinking: Think big, start small, scale fast. Do not wait for a massive, perfect strategy—test and learn.

AI Action Steps for HR Leaders

Looking for the top takeaways? These are the actions each HR leader can take right now around AI:

Map and understand “workflows” and activities, not just familiar processes, so transformation reflects how real work gets done across silos.
Evaluate your data ecosystem’s strengths and weaknesses; plot opportunities on a living work chart.
Start with one workflow—onboarding is a prime example—where improvements in efficiency and collaboration can quickly scale across departments.
Embrace the Agile principle: “Think big, start small, scale fast.” Begin with a manageable, high-impact project, deliver results, then expand.

AI represents a structural shift in how HR delivers value. The path forward is clear: design systems, experiment with intention, and build like a product organization. As Ian said, “We’re not going to eat the elephant in one bite.”