Artificial intelligence is reshaping human resources and recruitment, offering major efficiency gains while prompting debate about transparency, fairness and the limits of automation.

According to Andreas Grohn of Rexx Systems, AI’s greatest value lies in automating repetitive, time-consuming tasks, freeing HR teams to focus on people. Routine duties such as shift scheduling, payroll processing and leave management can be handled reliably by AI systems, allowing professionals to dedicate more time to employee engagement and organisational development.

In recruitment, AI speeds up candidate sourcing and screening by scanning large volumes of CVs for skills, qualifications and experience. Automated systems can tag key competencies and assign matching scores to identify strong candidates quickly. Yet risks remain: spelling errors, missing synonyms or biased training data can result in unfair exclusions or reinforce existing inequities.

The forthcoming EU AI Act will require employers to inform applicants when AI is used in hiring decisions, a step designed to build trust and strengthen compliance with data protection rules under GDPR. The legislation aims to ensure AI enhances fairness and transparency rather than undermines them.

Beyond hiring, AI can support tailored onboarding, personalised learning recommendations and sentiment analysis to detect early signs of low morale. These tools help create more responsive and positive workplace cultures.

However, experts warn against allowing AI to replace human connection. Empathy, trust and nuanced communication remain central to effective HR. Gabriela Zitsch, Lead Employer Branding at Exxeta and winner of the Rexx Recruiting Award 2025, said, “A standard rejection email after two interviews misses the mark entirely.”

Surveys show that 80% of candidates feel AI-led recruitment lacks personal touch, and 65% question its fairness, though many have yet to experience AI-assisted hiring directly. Familiarity and transparency could gradually shift perceptions as technology becomes more widely adopted.

To realise AI’s potential responsibly, organisations must pair innovation with ethics. Compliance with data protection and fairness laws is essential, but so too is respecting the emotional and social dimensions of work.

Handled with care, AI can deliver major advances across HR—from smarter recruitment to personalised employee development—while reinforcing rather than eroding the human element. This balanced approach positions the UK and other forward-looking markets to lead in responsible AI-driven HR innovation.

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