Will HR Be Replaced by AI?

September 4, 2024

The rapid advancement of artificial intelligence (AI) is transforming sectors around the globe, and human resources (HR) is no exception. From recruitment to performance management, AI is increasingly being integrated into HR functions, raising questions about the future role of HR professionals. Will AI replace HR entirely? Or will it augment the capabilities of human HR professionals, enabling them to focus on more strategic tasks?

In this blog, we'll explore this question in more detail as we will at the potential impact of AI in HR, its pros and cons, and why, in our opinion, human interaction remains irreplaceable in many aspects of HR.

AI in HR

Over the past while, we’re seeing more of how AI has begun to influence a wide range of HR functions, from recruiting and onboarding to employee engagement and retention.

Let’s investigate some of the areas where AI can provide timesaving assistance:

Recruitment: One of the most visible applications of AI in HR is in the area of recruitment. AI-powered tools can now automate the entire recruitment process, from sourcing candidates to screening resumes. These tools can analyse large datasets quickly, identifying candidates whose resumes match the job description based on specific keywords, past experiences, and even inferred competencies. This drastically reduces the time it takes to sift through hundreds of applications. Taking it one step further, some AI tools can even conduct preliminary video interviews, and analyse facial expressions, tone of voice, and word choice to assess a candidate's suitability for a role.

Employee Engagement and Retention: Beyond recruitment, AI is also making waves in employee engagement and retention. Predictive analytics tools can scrutinise employee data to identify patterns that might indicate dissatisfaction or a likelihood to leave. By proactively addressing issues, companies can improve retention rates and ensure a more satisfied workforce. AI can also be used to personalise employee experiences. For example, AI-driven platforms can recommend professional development opportunities based on an employee’s role, skills, and career aspirations.

Performance Management: Performance management is another area where AI is making a significant impact. Traditional performance reviews often suffer from biases, inconsistencies, and a lack of real-time feedback. AI can help address these issues by providing continuous performance data and insights. For instance, AI-driven tools can monitor employee productivity, track key performance indicators (KPIs), and provide real-time feedback, allowing managers and employees to make data-driven, timely decisions.

As we can see, integrating AI into HR processes clearly brings benefits, especially in efficiency, objectivity, and scalability. However, when compared to human involvement, what are the pros and cons that emerge?

First, let’s look at the Pros:

1. Efficiency and Timesaving: As we have seen from some of the examples above, AI’s ability to automate routine tasks goes a long way to saving both time and resources, freeing up HR professionals to focus on more strategic tasks. Similarly, AI can automate routine administrative tasks, such as payroll processing and benefits administration, reducing the administrative burden on HR teams.

2. Enhanced Decision-Making: AI can enhance decision-making by providing data-driven insights. For instance, predictive analytics can help HR professionals identify trends and patterns in employee behaviour, enabling them to make more informed decisions about hiring, promotion, and retention. AI can also help eliminate biases in recruitment and performance management by analysing data objectively and consistently.

3. Scalability: AI-driven HR tools can easily scale to accommodate a growing workforce. As a company expands, the volume of HR tasks typically increases, putting pressure on HR teams. AI can handle large volumes of data and tasks without requiring additional resources, making it easier for companies to scale their HR operations efficiently.

4. Personalisation: AI enables a level of personalisation that would be challenging to achieve manually. As an illustration, AI can tailor learning and development programs to individual employees based on their career goals, current skills, and learning preferences.

5. Cost Savings: By automating routine tasks and improving efficiency, AI can help reduce HR-related costs. For instance, AI can reduce the cost of recruitment by automating the screening and interviewing process. Additionally, AI can help reduce turnover costs by identifying and addressing issues that lead to employee dissatisfaction and attrition.

Despite the numerous benefits of AI in HR however, there are several challenges and potential downsides to consider. These include:

1. Lack of Human Touch: One of the most significant drawbacks of AI in HR is the potential loss of human touch. HR is fundamentally a people-oriented function, and many HR tasks require empathy, emotional intelligence, and human judgment. For example, AI may struggle to understand the nuances of human behaviour, such as the difference between a candidate who is nervous during an interview or one who lacks confidence. Similarly, AI may not be able to provide the same level of empathy and support as a human HR professional when dealing with sensitive issues, such as workplace conflicts or mental health concerns.

2. Potential for Bias: While AI has the potential to reduce biases in HR processes, it can also introduce new biases if not implemented correctly. AI systems learn from historical data, and if that data contains biases, the AI system may perpetuate those biases. So, if an AI recruitment tool is trained on data from a company that has historically favoured certain demographics, it may inadvertently continue to promote candidates from those same demographics. Ensuring that AI systems are fair and unbiased requires careful design, testing, and ongoing monitoring.

3. Data Privacy Concerns: The use of AI in HR often involves the collection and analysis of large amounts of employee data, raising concerns about data privacy. Employees may feel uncomfortable with the idea of their behaviour being constantly monitored and analysed by AI systems. Additionally, there are legal and ethical considerations around how employee data is collected, stored, and used. Companies need to ensure that they are compliant with GDPR data protection regulations and that they are transparent with employees about how their data is being used.

4. Over-Reliance on Technology: There is a risk that companies may become overly reliant on AI technology, neglecting the importance of human judgment and intuition. While AI can provide data-driven insights, it cannot replace the experience and intuition of seasoned HR professionals. Over-reliance on AI could lead to a lack of critical thinking and creativity in HR decision-making. Additionally, if AI systems fail or produce inaccurate results, companies may struggle to respond effectively if they have not maintained strong human HR capabilities.

5. Job Displacement: The rise of AI in HR raises concerns about job displacement. As AI automates more HR tasks, there is a risk that certain HR roles may become redundant. For instance, roles that involve routine administrative tasks, such as payroll processing, may be at risk of automation. However, while some roles may be displaced, new roles are likely to emerge that require a combination of HR and AI skills. Companies will need to invest in reskilling and upskilling their HR teams to ensure they can thrive in an AI-driven HR landscape.

While certainly AI offers numerous benefits, there are certain aspects of HR that require a human touch. Indeed, human interaction is crucial in many HR processes, particularly those that involve complex decision-making, empathy, and relationship-building. For instance, while AI can streamline the recruitment process by screening resumes and conducting initial interviews, the final decision should involve human judgment. Hiring the right candidate requires a deep understanding of the company’s culture, values, and team dynamics, as well as the ability to assess a candidate’s soft skills, such as communication and teamwork. These are areas where AI is still limited, and human recruiters are essential in making the final hiring decision.

Similarly, employee relations is another area where human interaction is crucial. Dealing with workplace conflicts, employee grievances, and mental health issues requires empathy, emotional intelligence, and strong interpersonal skills. While AI can provide data-driven insights, it cannot replace the empathy and understanding that human HR professionals bring to these situations. Building trust and maintaining positive employee relations requires face-to-face interactions and open communication, which are essential components of a healthy workplace culture.

Finally, leadership and strategic decision-making are areas where human input is irreplaceable. AI can provide valuable data and insights to inform decision-making, but it cannot replace the vision, creativity, and ethical considerations that human leaders bring to the table. Effective HR leadership requires a deep understanding of an organisation’s goals, values, and people, as well as the ability to navigate complex challenges and make decisions that balance the needs of the business with the well-being of employees.

The future of HR is not about AI replacing humans, but about humans leveraging AI to become more productive, data-driven, and strategic. The human element will always remain essential in areas that require judgment, empathy, and relationship-building.

To fully harness the potential of AI in HR, companies need to adopt a strategic approach to its implementation. This approach includes several key components:

· Training and upskilling of HR Professionals

· Ensuring ethical use of AI

· Balancing AI and human judgment

· Fostering a human-centred HR culture

· Continuously evaluating the impact of AI

Companies should also be open to evolving their approach to AI as new technologies emerge and the business landscape changes. Staying agile and adaptable will be critical to ensuring that AI continues to add value to HR processes over the long-term.

Conclusion

So, the question of whether AI will replace HR is, in many ways, the wrong question to ask. The real focus should be on how AI can complement and enhance the work of HR professionals, allowing them to be more effective, strategic, and responsive to the needs of their organisations and employees.

AI certainly has the potential to transform HR by automating routine tasks, provide data-driven insights, and enable more personalised and scalable HR solutions. However, the human element in HR - characterised by empathy, judgment, creativity, and relationship-building - remains irreplaceable.

As we look to the future, the most successful HR teams will be those that leverage AI to enhance their capabilities while staying true to the core values of human-centric HR management. By embracing a collaborative approach that combines the best of AI and human expertise, companies can create a more efficient, effective, and compassionate HR function that is well-equipped to meet the challenges of the modern workplace.

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WRC Inspections Continue to Rise

By Tara Daly • December 11, 2025

SMEs Should Prepare Now for 2026 As we reach the end of 2025, the Workplace Relations Commission is continuing to increase its inspection activity. Over the past three years, inspections have become more frequent, more targeted, and increasingly unannounced, a trend that shows no sign of slowing as we move into 2026. For employers, especially SMEs with limited internal HR capacity, this means one thing: the best time to prepare is now, before year-end pressures take over and before the next inspection cycle begins. Inspection Activity Has Risen Year on Year Publicly available data shows a clear upward trend: • 2022: 3,943 inspections, approx. 60% unannounced • 2023: 4,727 inspections, 3,662 unannounced (approx. 77 %) • 2024: 5,156 inspections, with the WRC confirming a further increase in unannounced site visits, particularly in targeted and joint operations (eg. Revenue, Garda National Immigration Bureau, Social Welfare, etc.) That is a 30% rise in total inspections in just two years, and early indications suggest the WRC will maintain this pace into 2026. Why This Matters for SMEs SMEs make up over 99% of businesses in Ireland, and many do not have a dedicated HR or compliance function. This makes them more vulnerable during an unannounced WRC inspection, where documentation must be produced immediately and the consequences of being unprepared are far more significant for SMEs who cannot absorb: • Financial penalties • Compliance orders • Disruption to operations • Reputational damage • Staff time diverted to crisis management With the increasing trend in enforcement activity and unannounced visits, SMEs should assume they could be selected for inspection in 2026 and ensure they have the systems, documentation and records ready. Why Employers Need to Be Ready Going Into 2026 The WRC’s annual reports typically publish in Q2, meaning the full 2025 inspection breakdown will not be available until mid-2026. However, current patterns indicate: • Increased unannounced inspections across all sectors • More joint visits with Revenue, Social Protection and Gardaí • Focus on working time, payroll accuracy, permits and record-keeping • Less tolerance for incomplete or inconsistent documentation Preparing now ensures your business, particularly if you are an SME without in-house support, is not left vulnerable. Key Areas Under Scrutiny During an inspection, employers must produce statutory documentation immediately, including: • Contracts of employment • Working time and break records • Payroll and pay-reference-period data • Annual leave and public holiday records and calculations • Employment permit documentation • HR policies, procedures and statutory records MSS- WRC Inspection Preparation Audit (Particularly designed for SMEs) Our Audit help employers get ahead before year-end, MSS The HR People offer a structured WRC Inspection Preparation Audit, specifically designed to support SMEs who may not have a full HR team. Our six-step process includes: Compliance Audit: Review of contracts, policies and statutory documentation Record-Keeping & Documentation Review: Templates and statutory checklists Corrective Action Plan: Clear and practical steps to close any gaps Mock WRC Inspection: A simulated visit with a full written report On-Call Support on the Day: Expert HR assistance during a live inspection Post-Inspection Follow-Up: Support responding to any findings or compliance orders This proactive audit protects SMEs from risk, disruption and penalties and provides peace of mind heading into 2026. Prepare Now, Avoid Pressure Later We are observing instances where a WRC inspection coincides with an employer having a live or upcoming WRC complaint listed for hearing. While this does not indicate any direct link between the two processes, it highlights an important practical point for employers: if you have a pending WRC case, it is prudent to ensure that all employment records, contracts, policies and statutory documentation are fully up to date and compliant. A scheduled hearing can often prompt an employer to review their practices, but by that stage it may be too late to correct underlying non-compliance identified during an inspection. Taking proactive steps early can significantly reduce risk and demonstrate good faith if those records become relevant in any subsequent proceedings. December and January is an ideal time for employers, particularly SMEs, to review compliance, update records and identify any gaps as the new year begins. Preparing now ensures you are fully inspection-ready for 2026. If you would like support preparing for a WRC inspection or wish to arrange a pre-inspection audit, our HR Partners are ready to assist. info@mssthehrpeople.ie , Ph: +353 1 887 0690, www.mssthehrpeople.ie

Two Major Employer Compliance Portals go Live

By Tara Daly • December 11, 2025

What Employers Need to Do Before Year End

Plasterer Wins €16,940 at WRC After Underpayment

By Tara Daly • December 11, 2025

A Warning for Employers and the Importance of Compliance

Increases to the Minimum Wage Ireland Rate 2025

By Tara Daly • December 11, 2025

With effect from on 1 st January 2026, the national minimum hourly rate will become €14.15. The full rate applies to any employee who is at least 20 years of age except as detailed below; EMPLOYEE MINIMUM HOURLY RATE Aged 20 or more - €14.15 (100%) Aged 19 - €12.735 (90%) Aged 18 - €11.32 (80%) Aged under 18 - €9.905 (70%) Who does it not apply to? The National Minimum Wage rate does not apply to the remuneration of a person who is; The spouse, father, mother, grandfather, step-father, step-mother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister of an employer, employed by the employer, or A craft apprentice within the meaning of or under the Industrial Training Act, 1967, or the Labour Services Act, 1987. Alternative minimum rates may be set down under Sectoral Employment Agreements (SEAs) or created by Employment Regulation Orders - Workplace Relations Commission . Working Hours Full time, part time, temporary, casual or seasonable employees are all entitled to the National Minimum Wage for hours worked. Calculation of Hourly Pay (Reckonable Pay) Reckonable pay means payments that are allowable in calculating an average hourly rate of pay under the National Minimum Wage Act. The following payments may be taken into account when determining average hourly rate of pay. Basic Pay Shift Premium Piece/Incentive Rate. Commission Any payments under section 18 of the Organisation of Working Time Act, 1997 (zero-hour protection) Productivity-related bonuses Service charge paid through payroll Board of Lodgings- If you receive board or lodgings, that is food or accommodation from your employer, the maximum amounts that can be included from 1 January 2026 are for: - - board only €1.27 per hour worked - accommodation only €33.42 per week or €4.77 per day Non- Reckonable Pay The following payments cannot be included to make up the national minimum wage rate: Overtime, call-out premiums, service pay, weekend and public holiday premiums, expenses incurred by the employee in carrying out their employment, unsociable hours premiums, tips or gratuities paid through the payroll, and allowances for special or additional duties may not be included, benefit in kind payments (except board of lodging), payments while absent from work i.e. sick pay, pension contributions, redundancy payments, compensation for injury, employer loan, an advance on wage/ salary, any sum payable to an employee in lieu of notice of termination of employment. Pay Reference Period The period over which you may calculate the average earnings (Pay Reference Period) may be a week, or a fortnight but must not be longer than one month. Employers are obliged to advise employees of the pay reference period they are selecting for calculations of minimum pay. Employees must be notified in writing as part of their Terms and Conditions of Employment. An employee may request from his or her employer a written statement of the employee's average hourly rate of pay for any pay reference period (other than the employee's current pay reference period) falling within the 12-month period immediately preceding the request. Employee Complaints An employee may make a complaint to the Workplace Relations Commission to investigate allegations of failure by the employer to pay the National Minimum wage or victimisation of an Employee. Such a referral must be within 6 months from the date of receipt of a written statement or from the latest date the employer should have given a written statement. Employees may not refer a complaint before requesting a written statement from their employer. Steps for Employers Employers should now implement the required changes to the rate of pay for those who are currently earning less than the new National Minimum Wage. There is no automatic right of an increase to those who are already earning in excess of the minimum wage. However, it is likely that some employers may face requests for the same. Whilst ordinarily there is no need for an Employer to notify an Employee that the National Minimum has been increased, some employers choose to issue a letter confirming their new rate of pay and the date on which it will be reflected in their pay. A template for this letter can be found on our HR Hub. Minimum Wage in Review With this most recent increase in the National Minimum Wage, an employee on minimum wage who works a full 39-hour week will now receive an additional €40.90 per week, or an extra €2,129.40 gross per year. It remains to be seen how employers will cope with these increases. As the new National Minimum Wage rate takes effect from 1 st January 2026, employers should take the time to review their current pay structures, budgets, and payroll systems to ensure full compliance. Staying proactive and informed will help employers manage these adjustments smoothly and maintain positive employee relations in an evolving pay landscape. If you require any assistance in reviewing pay structures, updating employment contracts, or ensuring full compliance with the new National Minimum Wage obligations, our team is here to help. You can contact MSS The HR People on 01 8870690 or email info@mssthehrpeople.ie and we will be happy to support you.