In 2024 the US restaurant chain Chipotle, which has more than 3 500 outlets across North America and Europe, adopted an artificial intelligence (AI)-based system named Ava Cado for recruiting staff.

‘The conversational hiring system will enable the general managers in Chipotle’s restaurants to spend less time on administrative tasks, including collecting basic information from candidates and scheduling interviews, and allow them to focus on their day-to-day operations and providing excellent hospitality for guests,’ according to a company press release.

‘The technology, underpinned by conversational AI, is expected to reduce the amount of time it takes to hire an employee for an in-restaurant position by as much as 75%. Ava will provide a frictionless hiring experience by chatting with candidates, answering their questions about Chipotle, collecting basic information, scheduling interviews for hiring managers and sending offers to candidates who are selected by managers. Ava is multilingual and can converse with candidates in English, Spanish, French, and German,’ it said.

AI is not just enhancing HR; it is redefining it. For decades, the human resources function has been defined by administration: payroll, recruitment paperwork, compliance and employee records. But the rapid rise of AI is fundamentally reshaping this traditional role.

One of the most immediate impacts of AI on HR has been the automation of repetitive, time-consuming tasks. Activities such as CV screening, interview scheduling, payroll processing and onboarding administration are increasingly handled by intelligent systems. Beyond recruitment, AI is streamlining day-to-day HR operations. From leave management to performance tracking, automation is freeing HR professionals from manual processes and enabling them to focus on higher-value work. This transition marks a fundamental shift: HR is no longer defined by what it administers, but by what it enables.

Since AI can now automate up to 70% of routine tasks in certain sectors, for HR teams this means a reallocation of responsibilities. Administrative roles are shrinking, while strategic capabilities such as workforce planning, organisational design and culture-building are becoming more critical.

This shift is also influencing the types of skills HR departments require. Data literacy, digital fluency and an understanding of AI systems are rapidly becoming core competencies. At the same time, uniquely human skills – empathy, ethical judgement and communication – are gaining prominence as differentiators in an AI-enabled workplace.

Sarah Cheesman, a tech writer for Sage, puts it like this: ‘HR professionals won’t be replaced, but their roles will evolve. With AI handling more repetitive and administrative tasks, new HR roles will emerge, such as AI operations lead, HR data analyst and prompt engineers focused on content generation.

‘Strategic skills like data literacy, ethical AI use, change management and digital communication will become increasingly essential. The most successful teams will not just use AI, they will build a culture around it. That means combining human insight with machine intelligence to make HR not only more efficient but also more human. By experimenting with new tools, investing in skills and keeping ethical use at the heart of every initiative, HR can shape how AI is used – within their teams and across the organisation.’

Perhaps nowhere is AI’s impact more visible than in recruitment. Traditional hiring processes are often slow, subjective and resource-intensive. They are being transformed by intelligent algorithms that can analyse vast volumes of data in seconds.

AI tools, such as Chipotle’s Ava Cado, are now capable of parsing CVs, identifying suitable candidates, predicting job fit and even conducting initial interview assessments. This not only speeds up hiring but also introduces a level of consistency and data-driven decision-making that was previously difficult to achieve.

This transformation is not without challenges. Concerns about algorithmic bias and fairness remain significant. Research shows that while AI can improve efficiency, human oversight is essential to ensure equitable outcomes and prevent unintended discrimination. As a result, many organisations are adopting a ‘human-in-the-loop’ approach, combining AI efficiency with human judgement to achieve better, fairer hiring decisions.

Maureen Phiri, director at Oxyon People Solutions, says the challenge is to strike the right balance between tech and fairness. ‘This tension is most visible in hiring and performance management. AI has enabled organisations to process large volumes of applications with speed and precision, identifying skills and matching candidates to roles more efficiently than ever before. However, this also means that decisions are increasingly influenced by algorithms before a human perspective is applied. As a result, hiring is no longer purely a matter of human judgement, but a hybrid process shaped by both data and discretion. For organisations, the priority should not only be efficiency but ensuring that these systems enhance, rather than dilute equitable decision-making.

‘Once inside the workplace, the influence of AI becomes even more pronounced. From tracking productivity to analysing behavioural patterns, these tools provide organisations with deeper insights into performance and operational trends. Yet, this constant visibility can feel intrusive if not carefully managed. More importantly, it signals a broader shift in the employer-employee relationship, from one guided largely by human intuition to one driven by data. To maintain trust, organisations must ensure that this shift does not remove the nuance, empathy, and context that only human judgement can provide,’ she says.

AI is also transforming how organisations understand and manage their workforce. HR is increasingly becoming a data-centric function, leveraging analytics to inform decision-making across the employee lifecycle. AI-powered systems can analyse employee performance, engagement levels and retention risks in real time. They identify patterns, predict outcomes and recommend interventions whether that’s targeted training, career development opportunities or wellbeing initiatives. The insight enables companies to align their people strategies with business objectives, enhancing productivity and employee satisfaction.

Increasingly, businesses that fail to embrace AI risk falling behind. Josh Bersin was the founder of Bersin & Associates, a research and advisory company for HR and management consulting, now owned by Deloitte.

‘Do we “automate away” our own jobs?’ he asked in a blog piece. ‘Well, in a way the answer is yes. AI, through its miraculous data integration and generation capabilities, can probably do 50–75% of the work we do in HR. All this is far from built out yet, but it’s clearly coming. So here’s my point. HR, like other functional areas in our companies, is going to have a real-life identity crisis.

‘Will HR go away? Well, a lot of the process, data management and support roles will absolutely change. And yes, employees and job candidates will happily use intelligent bots instead of calling their favourite HR manager. But you, as an HR professional will do more interesting things. You’ll become a consultant; you’ll manage and train AI systems; and you’ll have much more real-time information about the strengths and weaknesses of your company. We’re just going to have to lean into this AI wave to get there.’

The influence of AI on HR is profound and irreversible. What was once a largely administrative function is being transformed into a strategic, technology-enabled discipline that sits at the heart of organisational success.

In this new landscape, HR is no longer just about managing people – it is about unlocking their potential in collaboration with intelligent systems. It’s about using data to drive decisions, technology to enhance experience and human insight to guide ethical, inclusive outcomes. AI has the potential to address many of these issues – improving hiring efficiency, enhancing skills development and supporting compliance. But it also requires careful implementation to ensure inclusivity and fairness.

‘Implementing AI systems requires more than technical integration; it demands strong governance, ethical consideration and ongoing validation,’ says Phiri. ‘Organisations must ensure that the data informing these systems is credible and that outputs are regularly reviewed. They must also recognise that performance cannot be measured through a single, standardised lens. Different roles, industries and individuals require context-sensitive evaluation, reinforcing the need for human oversight at every stage.’

For SA businesses, the challenge is not whether to adopt AI in HR, but how to do so effectively. Those that succeed will not only streamline their operations but will also build more agile, engaged and future-ready workforces.

Image:  iStock