How is artificial intelligence reshaping the HR function and with what implications? A qualitative exploration in the service sector

Abstract

Purpose This study examines how the adoption of artificial intelligence (AI) is reshaping the HR function in large organisations. Addressing the predominance of normative accounts and limited empirical evidence in the AI–HRM literature, it explores how AI influences HR roles, the strategic positioning of the HR function, employee well-being and the professional future of HR specialists. Design/methodology/approach The authors used a multi-case qualitative research design to examine AI adoption and impacts in the HR function, studying five large financial services organisations in France and Canada with similar AI–HRM maturity. Data were collected through semi-structured interviews with HR analytics leaders overseeing AI–HR applications, HR professionals and line managers. Findings The study highlights certain trends and identifies two trajectories underpinning the AI–HR interaction: an “AIHR” model, prioritising automation and cost-minimisation through AI, and potentially compromising employee well-being and deprofessionalising the HR function; and an “HAIR” model, placing greater emphasis on maintaining a human-centric, well-being-oriented approach, one in which “shepherding” of AI applications by HR specialists helps to entrench HR professionalism and to minimise perversities. Practical implications The choice between an AIHR or HAIR model requires periodic assessment of HR sub-functions and evolving HR roles. Under an HAIR model, closer collaboration between AI developers and HR professionals is essential to reduce opacity and mistrust, requiring the development of HR “fusion skills” and the implementation of a formal AI–HRM strategy encompassing governance, data, training, communication and stakeholder engagement. Originality/value The fast-paced rise of AI in HRM is reshaping the activities and roles of the HR function, with significant implications for organisational performance, employee well-being and the future of the HR profession. Despite growing interest and limited empirical research on the AI–HR interaction, this study explores how AI is being implemented in the HR function and its impacts on HR roles and the tensions they entail.