Smarttechwith

humantouch-

ThefutureofHRwithAI

September2025

/inKPMG.MaketheDifference.

Contents

01

Executivesummary

04

02

Settingthestage:ThefutureofsmartHRtechwithahumantouch

05

03

TheChangingHRLandscape:

ForcesShapingtheFutureofWork

07

04

TheHRTechnology:CurrentMarketLandscape

10

05

ReimaginingHRwithAI-EnabledSolutions

13

06

AgovernanceblueprintforAIenabledHR

15

07

ImplementationRoadmap

16

08

ChangemanagementandRisks:Howtomakethenewwaysofworkingstick

17

09

Conclusionandimplications

18

10

Acknowledgements

19

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

withahuman

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR4

1.Executivesummary

Inaneradefinedbydisruption,theroleofHumanResourcesisundergoingaprofound

transformation.ThisKPMGinIndiaHRTechWhitePaper,SmartTechwithHumanTouch,

outlinesastrategicroadmapforHRfunctionstoevolvefromfragmented,reactiveoperationsintoagile,insight-drivenenablersofbusinessvalue.ThistransformationisanchoredintheconvergenceofAI-poweredtechnologies,human-centereddesign,andgovernedoperatingmodels.

HR’sStrategicEvolution

HRisshiftingfromacompliance-drivencost

centertoastrategicintelligencehub.The

future-readyHRfunctionisembeddedin

businessworkflows,orchestratingexperiencesandoutcomesthroughpredictiveanalytics,

dynamictalentmarketplaces,andpurpose-drivensystems.

ChangingHRLandscape

Themodernworkplaceisshapedbydigital-

firststrategies,hybridworkmodels,andrisingemployeeexpectations.HRisnowacenter

ofintelligence—drivingdecisionsontalent,

performance,andworkforceplanning.Whileautomationhandlesroutinetasks,human

empathyremainscentral,ensuringtechnologyaugmentsratherthanreplacesjudgment.

TheHRTechnology:CurrentMarketLandscape

TheHRtechmarketisprojectedtoreach

$76.4Bby20301.Organisationsare

adoptinglayeredecosystemscomprising

HCMplatforms,LearningExperience

Platforms(LXPs),EmployeeExperience(EX)toolsandGenAIcopilots.GenAIisalready

transformingJDcreation,onboarding,andperformancemanagement.Enterprises

prioritisescalabilityandanalytics,whilemid-marketfirmsseekcost-effective,AI-native

solutions.

AGovernanceBlueprintforAI-EnabledHR

StronggovernanceiskeytousingAIinHR

safelyandeffectively.KPMGinIndia

recommendssettingupanAI-in-HRCenter

ofExcellence(CoE),cleardataownership,andpromptstandards.ThishelpsensureAItoolsarefair,explainable,andcompliant—buildingtrustwhileenablingsmarter,fasterdecisions.

ImplementationChallengesandRoadmap

A12-monthroadmapguidesorganisationsfrompilottoproduction.Keyphasesincludemobilization,pilotbuild,scale-out,and

industrialization.Successhingesonproductownership,dataexcellence,andpredefinedgatesforbias,explainability,andadoption.

ChangeManagement

SuccessfulchangemanagementinHR

transformationmeanshelpingpeopleadapttonewwaysofworking.Thisinvolvesbuildingtherightcapabilities—likeAIliteracyforHR

teams—andcreatingarhythmforregular

check-insandupdates.HRBPsaresupportedtoshiftfromroutinetaskstomorestrategicroles.

1.HRTechnologyMarketSizeandShareAnalysis-GrowthTrendsandForecasts(2025–2030),MordorIntelligence,July2025.

Smarttechwithahumantouch–ThefutureofHR5

2.Settingthestage:ThefutureofsmartHRtechwithhumantouch

HighlevelnarrativeofHR’sevolution

Formostofitshistory,HRoscillatedbetween

complianceengineandcostcentre,butthelastdecadeintroducedanewchallenge:constant

disruption.Skillsshortages,hybridwork,and

digitaloverloadleftmanyHRfunctionsina

stateofflux2—fragmented,reactive,andtool-

heavy.Thenextphaseisflow:anoperating

statewhereHRisembeddedinthebusiness,

experiencesarefrictionless,andinsightsguidedecisionsinrealtime.KPMGInIndiaframesthishallmarkofleadingHRorganisations—those

thatintegratetechnology,analytics,andhuman-centereddesigntodelivervaluecontinuously,

notepisodically.Thus,HR’sevolutionisno

longeraboutefficiency;it’saboutorchestratingexperiencesandoutcomesatscale.

2.TheFutureofHR:FromFluxtoFlow,KPMGInternational,November2022..

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

HR’sStrategicEvolutionfromKPMGinIndia’sLens

KPMGInternationalreport2illustratewhatfuture-readyHRlookslike:

1.BusinessStrategy

connectedtoskillsthroughdynamictalentmarketplaces.

2.Relationalanalytics

embeddedineveryday

workflowsforfasterdecisions.

3.Purposeandwell-being

operationalisedaspartofthecoresystem,notside

programs.

SmarttechwithahumantouchThefutureofHR6

Technologyasacatalyst

Technologyistheenabler,not

thedestination.CloudHCM

platforms,servicemanagement,andAIcreatethecapacityand

resilienceforHRtodeliver

personalised,predictiveservices.GenerativeAIamplifiesthis

byautomatingcontent-heavytasks—jobdescriptions,

onboardingworkflows,

performancesummaries—

whilecopilotingemployeeandmanagerinteractions.ButwitheaseofuseofGenAI,therearerisksinvolved.Hence,value

materialisesonlywhenworkisredesigned,andresponsibleAIgovernanceisinplace.

KPMGTarget

Operating

Model

KPMGPoweredEnterprise

Figure1:KPMGsPoweredFramework3

KPMG’sPowered4HRframeworkenablesthis

shiftbycombiningaTargetOperatingModel

withpre-configuredprocessesanddigitalassets—acceleratingtransformationwhilepreservingthe20–30%ofdifferentiationthatdrivescompetitiveadvantage.

Thehumanintheloopimperative

GenAIbecomesacopilot,notanautopilot;InthecontextofHR,

leadersandprofessionalsshoulddefinethepurposeandethical

boundariesofAIuse(setting

intent),criticallyassessAI-

generatedrecommendations

(validatingoutputs),andremainaccountableforthefinaldecisionsandtheirimpactonpeopleand

culture(owningoutcomes).

“SmartTechwithHumanTouch”isnot

aslogan;it’sacontrolsystem.KPMGin

India’sGenAIguidance4isexplicit:torealisevalueandprotecttrust,HRmustinstitute

human-in-the-loopgovernance—ensuringpeopleremainaccountableforjudgment,escalation,andcontextspecificdecisions.Thatmeansdocumentedguardrailsfor

explainability,biastesting,privacy,and

modelmonitoring,plustrainingthatequipsHRandlineleaderstoauditAIoutputs,

SunitSinha

PartnerandHead,HumanCapitalAdvisory,

KPMGInIndia

overridewhennecessary,andcapturefeedbackforcontinuousimprovement.

Inthenextsection,wecanexaminethe

macroforcespressuringHRtomakethatleap,andhowtotranslatethemintonear-termprioritiesandmeasurableoutcomes.

3.KPMGPoweredHR:AcceleratedHRTransformationFramework,KPMG,May2024.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

4.GenerativeAIGuidanceforHRandBusinessTransformation,KPMG,March2024.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR7

3.TheChangingHRLandscape:

ForcesShapingtheFutureofWork

HumanResourceManagementhasevolvedfarbeyonditstraditionaladministrativeroots.Onceseenprimarilyasthedepartmentthattrackedattendance,processedpayroll,and

organisedculturalevents,HRisnowastrategicpartner5—centraltoshapingworkforcestrategy,drivingbusinessgrowth,andenablingorganisationalagility

FromOperationalBackbonetoStrategicIntelligenceHub

Today’sHRfunctionsareexpectedto

deliverreal-timeinsightsthatguidecostoptimization,skillidentification,attritionrisk,andworkforcesentiment6.

HRnowinfluenceskeydecisions—

fromperformanceandsuccession

planningtocompensation

benchmarkingandproductivitytracking—shapingAnnualOperatingPlans.

Yet,despitethisstrategicrole,HRteamsstillhandleroutinetaskslikepolicy

queries,interviewscheduling,andattendancetracking,divertingfocusfromhigh-impactwork.

TechnologyasaForceMultiplier

TheemergenceofHRTechhasbeenagame-changer.Automation,analytics,andAI—

includingGenerativeAI—aretransformingHRoperations,enablingashiftfromtransactionaltaskstostrategicinitiativeswhilekeeping

apeople-centricapproach7.

AsperETHRWorld8,69%oforganisationshavealreadyautomatedcoreHRoperations.

Considerasimplepolicyquery:insteadof

waiting24hours,employeesnowgetinstant,accurateanswersviaAI-poweredchatbots,enhancingemployeeexperienceand

reducingoperationalload.

5.TheStateoftheHRLandscapein2025,Avature,February2025.

6.HRTrendsReport2025,McLeanandCompany,January2025.

7.AIHRHRTrendsReport2025,AIHR,January2025.

8.TechTransformations2025,ETHRWorld,February2025.

Smarttechwithahumantouch–ThefutureofHR8

KPMGInternationalsurveyfoundproductivityincreaseasthetopoutcomeoftechnology

enablement,followedbywork-lifebalance,asshownbelow.

Figure2:KPMGInternationalReport-TheFutureofHR:FromFluxtoFlow9

TheNewMandate:Data-Driven,

Experience-Led,AI-Enabled

Artificialintelligencedoesn't

replacehumanintelligence—it

enhancesit.Itisacatalystfor

‘speedy’creativityandinnovation.

AIaugmentsthecapabilitiesofHRprofessionalscuttingthroughrepetitivetasks,surfacingdata-driveninsights,andenabling

faster,moreinformeddecision

ThefutureofworkdemandsHRfunctionsthataredigitallyfluent,emotionally

intelligent,andinsight-driven.HRmustnowoperateattheintersectionof:

Digital-firsttransformation:LeveragingAIandautomationtoscaleoperations.

Human-centricworkforcestrategy:Designinginclusive,purpose-drivenemployeejourneys.

ManeeshaGarg

PartnerandHead,ManagedServicesKPMGInIndia

Data-drivenagility:Usingpredictiveanalyticstoanticipateandrespondtoworkforcedynamics.

9.TheFutureofHR:FromFluxtoFlow,KPMGInternational,November2022

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR9

AwideningcapabilitygapbetweencurrentHRreadinessandfuturedemandsisdrivingurgency.KPMGInternational’ssurveyof300HRleadersconfirmsthatwhilestrategictransformationis

recognised,immediateactionisessentialtoclosethisgap.

TopAreaswiththeLargestGaps

53%

57%

46%

39%

32%

36%

28%

27%

31%

25%

25%

18%18%

12%

15%

ImprovingMentalHealth&WellBeing

AutomatingHRService

Delivery

BuildingTalentMarketplace

WorkforceShapingforthenextthreeyears

DeliveringPredictive

Insightsfrom

WorkforceAnalytics

uFutureImportanceCurrentCapabilityuGap

Figure3:KPMGInternationalReport-Gapsincurrentcapabilityvs.futureimportance10

?BuildingaTalentMarketplace

Organisationsneedagileplatformsthatalignskillswithtasksandroles,enablinginternalmobilityandrapidredeployment.

?WorkforceShapingfortheNextthreeYears

HRmustproactivelyplanforchangesinworkforcesize,structure,andskillsusingscenarioplanningandpredictiveanalytics.

?ImprovingMentalHealthandWell-being

Well-beingisnolongeraperk—it’sastrategicimperativetiedtoretentionandproductivity.

?AutomatingHRServiceDelivery

Manualprocessesstilldominate,slowingresponsetimesandreducingemployeeexperiencequality.

?DeliveringPredictiveInsights

fromWorkforceAnalytics

Oneofthelargestgapisturningdataintoactionableintelligence

forbusinessdecisions

10.TheFutureofHR:FromFluxtoFlow,KPMGInternational,November2022

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR10

4.TheHRTechnology:

CurrentMarketLandscape

TheHRtechnologymarketisevolvingatanunprecedentedpace,drivenbydigital-first

strategies,employeeexperienceexpectations,andtherapidmaturityofAIandGenAIsolutions.OrganisationsarenolongeraskingiftheyshouldinvestinHRtech—theyareaskinghowfast

theycanscale.

AdoptionTrends:

Enterprisevs.Mid-Market

?Enterprisesleadinadoption,

prioritizingscalability,integration,andadvancedanalytics

?Mid-marketandSMBsaredrivingvolumegrowth,favouringcost-effective,easy-to-implement

solutions.NicheVendorsaregainingtraction

?Nearly75%ofbusinessesgloballyuseHRtech,and60%ofsolutionsarecloud-based12

?OrganisationsuseanaverageoffourHRtools,withcomplexityincreasingbycompanysize.13

MarketDynamics:

RiseofNicheVendors

?TheHRtechmarketisprojectedtoreach$42.5Bin2025and$76.4Bby2030(12.8%CAGR)11

?Nichevendorsareemergingin

areaslikementalhealth,DEI

analytics,andskills-basedplanning,challengingincumbentswithAI-

nativesolutions

?Buyerprioritiesareshifting

towardAIcapabilities,integrationreadiness,andresponsibleAI

governance.14

DigitalHRtransformationis

thestrategicreinventionof

anorganisation—leveraging

technologyatscaleandspeedtocontinuouslyunlocknewsourcesofvalue,enhanceagility,and

drivesustainablegrowth.

ArunSharma,

Partner,HumanCapitalAdvisory

KPMGInIndia

Nearly66%

ofHRteamsalreadyuseGenAI,withJDcreationandresume

screeningastopusecases.15

11.HRTechnologyMarketSize&ShareAnalysis–GrowthTrends&Forecasts(2025–2030),MordorIntelligence,July2025.

HRTechnologyAdoptionStatisticsandFacts,Market.Biz,August2025.

12.4HRTechTrendsDrivingFutureBuyerDecisions(HRSoftwareTrendsSurvey2025),GartnerDigitalMarkets,August2025

13.OvercomingTopHRTechnologyChallengeswithAI,KPMG,July2025.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

14.“TheRoleofAIinHRContinuestoExpand,”SHRM,2025TalentTrendsReport.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR11

KPMGinIndia’svaluepropositioninarapidlyevolvingHRlandscapeisitsabilitytodeliverAI-powered,human-centrictransformationacrosstheemployeelifecycle16.Byintegratingdigitalsolutionsintoareaslikeworkforceplanning,leadership,culture,andexperience,KPMGinIndiahelpsHRshiftfromoperationalsupporttostrategicimpact17.Fromrecruitmenttowellnessandexit,KPMGinIndiaenablessmarter,faster,andmoreHRoutcomes—whilekeepingempathy

andtrustatthecore.

C.Leadership

?LeadershipAssessment

?LeadershipDevelopment

?LeadershipCoaching

D.CultureandChange

?CultureAssessment

?ChangeExecution

?BuildingChangeCapability

E.Employees/Workforce

?Employeeproductivity

?HR/Peopleanalytics

B.Talent

?Talent

Assessment

HRMS

CAPABILITIES

(ESTABLISHED/

EMERGING)

?JobEvaluation

F.HRandWorkplace

EmployeeLifecyclesolutions

?Workplace

Transformation

?Digital/TechAdoption

?DiversityandInclusion

A.Organisation

?OrganisationHealth

?Organisationmodelandstructure

?Strategicworkforceplanning

Compensation

Rewardsand

Recognition

ContingentWorkforce/GigTalent

LearningandDevelopment

ChatbotandRPA

OffboardingandExit

Engagement

Onboarding

Performance

HRServices

Recruitment

Wellness

Payroll

AIEnabledWorkforceTransformation

16.TheNewRealityofHumanResources,KPMG,July2025.

17.OvercomingTopHRTechnologyChallengeswithAI,KPMG,July2025.

Smarttechwithahumantouch–ThefutureofHR12

AstheHRtechmarketevolvestowardAI-nativesolutions,organisationsmustarchitect

2

ModelLayer

systemsthatembedsdataethics,AIgovernance,andregulatoryadherenceintoeverylayer.

HostsAI/MLmodels—includingLLMsforGenAIcopilots,predictiveanalytics,andpersonalization—trainedonHR-specificdataandcontinuouslyrefinedviafeedbackloops.

?KnowledgeBase:StructuredrepositoryofHRpolicies,FAQs,anddocumentsgroundingLLMresponsesasfirst-linesupport.

?TrainingData:IncludesanonymisedHRhistory,behaviouralsignals,andsyntheticdatasetsforedgecases20.

?BiasDetectionandExplainability:HelpsensurefairnessandcompliancewithResponsibleAIstandards.

?ConfidenceScores:OutputsaretaggedwithconfidencelevelstoguidedecisionsandHITLescalation.

?A/BTestingandSampling:Evaluatesmodelvariantstooptimiseperformanceacrossdiverseemployeeprofiles.

1

DataLayer

Thedatalayerservesasthe

foundationalrepositoryforallHRdata—structured(e.g.,employeerecords,payroll)andunstructured(e.g.,resumes,feedback,

interviewtranscripts).ItsupportsingestionpipelinesfromHCM,LXP,andEXplatforms,and

includesmetadatataggingforlineageandtraceability.Strongdatagovernancehelpsensurequality,accesscontrol,and

compliancewiththeDPDP

ActandCERT-Inmandates18.

Encryptionisenforcedbothat

restandintransit.Thislayeralsofeedscurateddatasetsintomodeltrainingpipelines19.

18.DigitalPersonalDataProtectionAct(DPDPAct),GovernmentofIndia,2023.

19.CERT-InGuidelinesforCybersecurity,MinistryofElectronics&IT,India,2022.

20.ResponsibleAIFramework,KPMGGlobal,2024.

21.KPMGGlobalTrustServicesCriteriaFramework,KPMG,2024.

3

OrchestrationLayer

ThislayerintegratesAIserviceswithenterpriseHRsystemsviaworkflowenginesandAPIs-

?Event-drivenarchitectureforreal-timeHRprocesseslike

onboarding,payroll,andgrievanceredressal.

?Servicemeshforroutingrequestsbetweenmicroservices,ensuringscalabilityandfaulttolerance

4Controland

GovernanceLayer

ThisincludesHuman-in-the-Loop

(HITL)checkpointsforsensitive

decisions(e.g.,hiring,performancereviews,disciplinaryactions).ItwillalsohaveAudittrails,andescalationlogicbasedonconfidencescores,aswellasoverridemechanismsforcompliance.

Securityand

5

ComplianceLayer

CoreLayers

ofHRTechReferenceArchitecture

Controland

GovernanceLayer

Securityand

ComplianceLayer

OrchestrationLayer

ModelLayer

DataLayer

4

3

5

2

1

SecurityisenforcedthroughRole-basedaccesscontrol,identityfederation,andcontinuousmonitoring.CompliancealignmentwithCERT-In,ISO27001,SOC2,andsector-specificnorms(e.g.,RBIforBFSI,HIPAA-equivalentforhealthcare).TransparencyartifactslikeSBOM,CBOM,andAIModelBOM.ComplianceisenforcedthroughDPDPAct(India)whichrequiresexplicit

consent,purposelimitation,anddataminimization.Non-compliancemayattractpenaltiesupto?250crore.CERT-InGuidelinesmandatebreachreportingwithin6hoursandannualthird-partyaudits.ResponsibleAI

Governance:FrameworkslikeKPMGGlobal’sTrustedAItohelpensureethicalAIdeploymentacrossthelifecycle21.

Smarttechwithahumantouch–ThefutureofHR13

5.ReimaginingHRwithAI-EnabledSolutions

AIisemergingasakeydriverofmodernHRstrategy—streamliningoperations,enhancing

decisions,andpersonalizingemployeeexperiences.BasedonKPMG’sPoweredFramework,thischarthighlightsreal-worldAIusecasesacrossHRfunctions,showcasinghowGenerativeAI,ML,andNLP(NaturalLanguageProcessing)enableautomation,insights,andstrategic

workforceplanningacrosstheemployeelifecycle.

TalentAcquisition

?AI-assistedjobdescriptiongeneration

?AI-poweredinterviewscheduling

?GenerativeAIformultilingualofferdocuments

AIUse

Cases

WorkforceAdministration

?AIfordynamicorgchartgeneration

?AIfordetectinganomaliesinpersonaldataupdates

?MLforrootcauseanalysisofincidents

Onboarding

?AI-drivenonboardingchecklistgeneration

?Virtualassistantforonboardingqueries

?AI-drivenITassetallocation

Payroll

?AI-drivenpayrollruleconfigurator

?Intelligentpayrollcalendargenerator

?AI-powereddiscrepancydetector

?BankFileFormatOptimiser

Talent

?PersonalisedcareerpathingusingML

?AImatchingengineformentor-menteepairing

?AI-assistedstrategicgoalalignmentmetrics

TimeManagement

?AI-basedSkillGapAnalysis

?AI-assistedscheduleframeworkoptimizer

?AI-BasedTimeCorrectionSuggestions

Learning

?AI-drivencurriculumoptimization

?Contentrelevanceprediction

?PredictiveanalyticsforlearningROI

?AI-basedSkillGapAnalysis

WorkforceInsights

?NLP-basedsurveyanalyser

?ML-basedpatterndiscovery

?AI-assisteddashboardcreation

?GenAIforexecutivesummaries

TotalRewards

?Predictiveanalyticsforcompensationplanning

?AI-drivenmodelingoftotalrewardsscenarios

?GenerativeAIforpersonalisedrewardstatements

WorkforceShaping

?GenAIforstrategicworkforceplanningdocuments

?AI-assistedbusinessscenariomodeling

?AI-drivenworkforcetransitionplanning

WorkforceExperience

?AI-poweredbrandsentimentanalysis

?GenAIforemployerbrandingcontent

?GenAIforwellbeingcampaign

?AIchatbotforemployeequeries

WhileAIistransformingHRacross

Intheeraofintelligent

transformation,AIis

poweringthenextgreat

shift—revolutionizinghowweworkthrough

automation,innovation,andreinvention.

theemployeelifecycle—fromtalent

acquisitiontoworkforceexperience—thehumantouchremainscentral.

Theusecasesshownhere

demonstratehowAIenhances

personalization,efficiency,and

PurushothamanKG

Partner,BusinessConsulting,

HeadTechnologyTransformation,KPMGinIndia

insight,butit’stheHRprofessionalwhobringsempathy,context,andjudgment.Thissynergybetweenintelligentautomationandhuman-centeredleadershipdefinesthe

futureofHR.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

?2025KPMGAssuranceandConsultingServicesLLP,anIndianLimitedLiabilityPartnershipandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Smarttechwithahumantouch–ThefutureofHR14

MeasuringGenAIImpactinHR

GenAIisredefininghowtimeandvaluearedistributedacrossHRfunctions.AccordingtoKPMGGlobal’sMarch2025analysisofHRmanagersinthetechsector,upto31%oftheirtimecanbefreedannuallythroughGenAIaugmentation—withoutcompromisingqualityorcompliance22.

Thistimesavingstranslatesintotangibleeconomicvalue,allowingHRprofessionalstoshiftfocusfromadministrativetaskstostrategicprioritiessuchasworkforceplanning,DEI,andemployeeexperience.

TomeasureGenAI’simpact,HRleaderscantrackkeyKPIssuchas:

H2R

Process

EconomicPillar(s)

SuggestedKeyKPIs

IllustrativeROIImpact

Talent

Acquisition

ProductivityandValue

Creation

?

?

Time-to-hire

Cost-per-hire

30–50%fasterhiring;15–37%lowersourcingcosts

Onboarding

CostEfficiencyand

Experience

?

?

?

OnboardingCompletionRateNoShowrate

OnboardingIssueResolutionTime

20–40%fasteronboarding;4daysshortercycle,6%ReductioninnoshowviaAINudging,

ResolutionTimeReduction:From10daysto3days

Learningand

ValueCreation

?

LearninghoursperFTE

Completionrateincreaseby20%dueto

Development

and

Productivity

?

?

Trainingcompletionrate

Skillscoverageindex

personalisedlearningpath;acceleratedreskillingandupskilling

Performance

Management

ValueCreationandRisk

Mitigation

?

?

Goalalignmentindex

Biasdetectioninratings

Improvedworkforceproductivity;CompletionsupportedbyAInudges;15%increasein

promotionequityor25%reductioninratinginflation

Compensationand

Rewards

CostEfficiency

andRetention

?

?

Compratio(actualvsmarketmedian)Payequitygap

Optimisedpayspend;improvedretention;reducedpayinequities

Employee

ExperienceandER

ValueCreationandRisk

Mitigation

?

?

?

EmployeeNPS

Grievanceresoluti