The new role of HR in an AI-powered workplace

Artificial intelligence is changing every part of the workplace. From finance and operations to customer service, organizations are rethinking how work gets done and where people create the most value. HR is no exception.

As AI becomes part of everyday work, expectations of HR, Reward and Benefits leaders are changing too. Organizations are looking to HR not only to adopt new technology, but to make better decisions, demonstrate measurable business impact, and help employees adapt to an AI-powered future.

That shift is reflected in Benifex’s latest Energizing Reward and Benefits research. Based on insights from 600 HR, Reward and Benefits professionals and 7,000 employees worldwide, the research shows that AI is becoming a strategic opportunity for HR leaders who are ready to embrace a broader role.

A changing role

The rapid pace of AI adoption has naturally created uncertainty.

More than half (51%) of HR, Reward and Benefits leaders say they’re increasingly concerned about their own job security, with AI cited as a core driver. As automation expands and AI-powered tools become more capable, traditional responsibilities are evolving and expectations continue to rise.

At the same time, the research tells a much more positive story.

Rather than viewing AI as a replacement for HR, many leaders see it as a way to become more strategic. The opportunity isn’t simply to work faster. It’s to spend more time on the work that has the greatest impact on employees and the business.

In other words, AI isn’t reducing the importance of HR. It’s changing where HR creates value.

Moving beyond administration

For many HR teams, administrative work continues to consume valuable time.

Routine processes, reporting, and manual analysis often leave little capacity for strategic planning, even as business leaders expect HR to play a greater role in workforce decisions.

Our research shows that HR leaders see AI helping to shift that balance.

40% say AI will free them from low-value work so they can focus on strategic priorities. Others believe it will strengthen their ability to demonstrate the return on investment from benefits and wellbeing programs, identify workforce risks earlier, and make faster, more informed people decisions.

These aren’t simply productivity gains. They represent an opportunity for HR to spend more time shaping workforce strategy, supporting organizational resilience, and contributing to business performance.

Better decisions, faster

Perhaps the biggest opportunity lies in how AI changes decision making.

Modern benefits technology is already using AI to analyze utilization patterns, forecast future demand, model investment scenarios, and predict costs with far greater speed than traditional approaches.

What once required lengthy analysis or external specialist support can increasingly become part of everyday decision making.

This gives HR leaders access to forward-looking insight that helps strengthen business cases, connect people investment with commercial outcomes, and speak more confidently to Boards and executive teams.

Instead of relying solely on historical reporting, HR can model future scenarios, anticipate workforce needs, and support decisions with stronger evidence.

That shift matters because organizations are asking tougher questions about every investment they make, including investments in people.

Raising expectations

The research also highlights an important reality.

AI is raising expectations of HR leadership.

As technology takes on more routine activity, the value HR brings increasingly comes from judgment, strategic thinking, and the ability to connect people decisions with business outcomes.

Seventy-two percent of HR, Reward and Benefits leaders say they need to use AI more strategically to maintain credibility within their organization.

The leaders who thrive won’t simply be those using AI tools. They’ll be the ones using AI-generated insight to influence decisions, build stronger business cases, and help their organizations navigate change with confidence.

Looking ahead

AI is reshaping the workplace, but it isn’t diminishing HR’s role.

If anything, it’s creating an opportunity for HR, Reward and Benefits leaders to play a more influential role than ever before.

By combining AI-enabled insight with deep understanding of people, organizations, and culture, HR can help businesses make smarter decisions while creating better experiences for employees.

Read the full Energizing Reward and Benefits report to explore this shift in greater detail, alongside four other trends shaping the future of reward, benefits, and the employee experience.