The importance of the human touch in the age of AI-driven HR

Like every other industry, AI is impacting HR extensively. HR Caddy director Nicola Callaghan explains that while the technology could help make complex processes more efficient, there is also a risk that they could distance HR professionals from their workforce.

As artificial intelligence becomes more embedded in the workplace, HR leaders are being encouraged to assess how automation is influencing people management and whether anything is being lost in the process.

AI is helping HR teams become more efficient, offering data-driven solutions across recruitment, onboarding and employee engagement. However, while the technology is rapidly advancing, questions remain about its ability to handle the emotional and interpersonal challenges that HR professionals navigate every day.

Organisations are increasingly using AI to streamline operations. This includes software that can sift through thousands of job applications in seconds, chatbots that respond to employee queries at any time and platforms that identify trends in performance data. These tools are helping HR departments save time, reduce costs and make quicker decisions. Yet HR experts are warning that while AI supports certain processes, it cannot replace the human judgement and empathy that are often required in complex or sensitive situations.

Nicola Callaghan, director of human resources services firm HR Caddy, says to that end, "The human aspect of HR should never be lost. “The moment you're dealing with a grievance, mental health concern or team conflict, it's the emotional intelligence of an experienced HR professional that makes the difference. No algorithm can build trust in the way a person can."

Unconscious bias

The use of AI in recruitment is becoming widespread. However, it is by no means an impartial tool – and may reflect the biases of its creators, or the society whose data has been used to train it. As a result, unconscious bias remains an issue with the technology – but one which is even harder to detect or hold someone accountable for. For example, a BBC report last year found a job applicant, who’d been screened out of an interview previously, applied for the same job but adjusted their birthdate and this change landed them the interview.

Elsewhere, AI is also increasingly involved in employee performance tracking. It can highlight patterns that suggest disengagement or burnout and even recommend tailored development plans. In onboarding, digital platforms are improving consistency by guiding new starters through training materials and policies, often with virtual assistants available to answer questions instantly. These tools are helping HR departments become more data-driven. However, experts stress the importance of using this data alongside human insight.

Callaghan notes, "We’ve seen some great examples where AI has helped identify development needs early, allowing managers to step in before issues escalate. But it only works well when combined with the context a line manager or HR professional brings. We always advise our clients to use AI as an aid, not a replacement, for conversations. It’s the human follow-up that turns insight into action.”

AI remains limited in situations that require emotional understanding. Conflict resolution, wellbeing conversations and sensitive feedback discussions requires the ability to adapt to the needs of the individual. It also struggles with cultural nuance. While it can be trained to flag certain language or behaviour patterns, it often lacks the deeper awareness needed to manage diverse teams and promote true inclusion.

These limitations mean that while AI can inform decisions, the final judgement must still rest with experienced HR professionals who understand the people behind the data. According to Callaghan, this illustrates the importance of keeping people at the heart of HR, especially when dealing with sensitive issues.

Human understanding

“People don't just want to be heard, they want to be understood,” she continues. “That means having someone who can read between the lines, pick up on non-verbal cues and respond with empathy. AI just isn’t there yet. When it comes to personal or difficult conversations, that human connection is irreplaceable.”

Because of this, a balanced approach, where AI is used to enhance rather than replace people-focused practices, is emerging as the preferred strategy. When used thoughtfully, AI can remove administrative barriers, freeing up time for more meaningful work. But beyond that, HR leaders are being encouraged to see it as a tool that supports human-led decision-making. 

This is something Callaghan has seen first hand in her work with HR Caddy. The company is focusing on helping clients to adopt AI without losing their people-first culture – because “the most successful implementations” the company has witnessed are where “AI enhances the employee experience rather than distances it”. 

Callaghan concluded, "We support businesses in introducing smart tech in ways that complement their existing HR strategies. The goal is never to replace people but to give them more time to do what they do best connect, support and lead. "