In 2025, as CEOs navigate industry shifts, their expectations from HR teams are also evolving. They seek more from their HR functions, backed by data and Artificial Intelligence, to transform HR into a more value-adding and insight-driven function.

The roles of CHROs and Chief People Officers have taken center stage, offering a unique opportunity to elevate HR into a true strategic partner.

In a keynote session at People Matters TechHR India 2025 held last week, David Green, a global leader in the HR industry, examined the key factors enabling this shift, sharing case studies from leading companies to help HR teams enhance their impact, value, and strategic focus within their organisations.

Here are the key insights from the session: 

Setting the context, Green said, “Over these past six years, we’ve navigated a pandemic, ongoing geopolitical uncertainty, leaving us unable to predict what world leaders will do next..Deep into the Fourth Industrial Revolution, we’ve also faced economic volatility and rapid technological advancements…Now CEOs are reinventing their companies, and for HR, this is a defining opportunity to be at the heart of that transformation.”

He also underlined the fact that the speed of tech transformation today is a bit overwhelming, it's faster than ever, but at the same time slower than what we’re to see in the near future. 

Sharing insights from a recent Gartner study, he said “In 2024, 0% of companies were using agentic AI but in next five years, over 15% of organisations will be using Agentic AI. 

What does this shift mean for HR?

Green shared that over the past decade, HR's role has evolved from simply adopting technology to making it work for people. HR stands at the bridge between technology and humans, and that’s an incredibly important role. And the key areas are: AI, Skills, and Culture. 

#1 Artificial Intelligence

Green shared, “For AI, we’re all seeing the headlines, TCS recently announced automating 12,000 jobs using AI. CEOs love to talk about jobs being replaced by technology. What they talk less about, but is just as important, is the new jobs that will be created.”

He explained, “for HR, AI is a powerful tool, it can replace repetitive tasks. But AI isn’t making judgements or decisions yet. That’s where HR comes in, to create a culture where AI guides, but humans decide. We need to keep the “Human” in HR.”

Impact of AI in HR

Sharing insights from Insight222’s global report 2024, he shared that about 62% are still in their first year of using AI in HR, reflecting how generative AI has been a catalyst, moving AI from theory to action.

“People Analytics teams are leading this charge. Many are hiring AI specialists, UX experts, and product managers to scale AI solutions within HR. But AI is only as good as the data behind it,” he explained.

Additionally, another positive trend observed was that 60% of organisations are investing in building strong data foundations. “Without good data, AI simply can't function effectively, or ethically,” he added.. “Governance is another area getting attention, with 34% of companies establishing councils to set AI strategy and ensure ethical use.”

HR’s responsibility is clear: prepare the organisation for AI, lead workforce transformation, rethink org design, and champion reskilling, not just for the business, but for themselves too. “Start small with pilots, measure impact, and build momentum,” he added. 

Case study: IBM’s HR used AI to streamline their promotion cycle in IBM Consulting. HR Business Partners spent 10 out of every 13 weeks in a quarter managing this process manually. By automating repetitive tasks with AI agents, they cut the cycle time in half, saving 12,500 hours per quarter, and freeing up HR to focus on strategic work and line managers to spend more time coaching their teams. It wasn’t just efficient, but also impacted business performance and revenue positively.

#2 Skills 

“Moving from jobs to skills isn’t a simple shift—it’s a massive transformation. HR needs to lead this,” emphasised Green

Case study: In 2020, Standard Chartered realised they had 14,000 sunset jobs, many in admin and call centers, and they needed to create 9,000 new roles elsewhere. Rather than laying off 14,000 people and hiring new ones, their CHRO made a business case to reskill their existing workforce. The result? They saved $49,000 per role.

They piloted a talent marketplace in India, which not only enhanced employee engagement and retention but also led to the creation of new products for hard-of-hearing customers. That’s the kind of business value HR can drive when they approach skills strategically.

He underlined, “According to the World Economic Forum’s prediction: 78 million jobs will be created by 2030. But 63% of companies see skills gaps as the biggest barrier to transformation. This is HR’s moment to lean in.”

#3 Culture

“Culture drives HR in the first place. People Analytics and AI can actually help us build fairer, healthier, and more human workplaces,” shared Green

Workforce wellbeing isn’t just the right thing to do; it creates business value.

McKinsey, Oxford, and Indeed conducted a massive study that showed companies investing in wellbeing outperform their peers on the stock market,” he added. 

“But to create thriving workplaces, we need to listen to our people. Microsoft is a great example, as CEO Satya Nadella led the shift from a know-it-all to a learn-it-all culture. They implemented a listening strategy that combined traditional surveys with passive data signals from calendars and collaboration tools, not invasive, but enough to gather insights.”

Such data helps HR in understanding when in-person work truly matters: when onboarding new hires, kicking off new projects, and fostering social inclusion. Other companies might find different patterns, but the principle is the same, use data to design a culture that helps your people thrive.”