The Key HR Challenge in 2025: Balancing AI with Human Connection

Ed note: Posts published on From the Workplace are written by outside contributors and do not necessarily reflect the view or opinion of SHRM.

A technology revolution was afoot, and it was changing the very nature of work. It wasn’t in 2024 or 2025, though — the year was 2001.  

Many organizations had just modernized or patch worked their IT systems to get past the Y2K bug, and in the immediate aftermath of those projects, organizations found themselves sitting on underutilized resources. Among them were employee and manager self-service tools — Web 1.0 had hit the enterprise. 

I was implementing a similar solution when I met Mary and Susan. They were office administrators in their respective departments, working two floors apart. One of their daily routines was to walk the interoffice mail envelope to each other, Mary to Susan in the mid-morning, and Susan to Mary in the mid-afternoon. Those envelopes often contained various paper forms that required approval signatures, followed by data entry and/or filing — think time cards, vacation approval, and personal information change forms. The self-service tools I was implementing would do away with not just the forms, but also Mary and Susan’s daily mail visits. 

The Value of Face-to-Face

On the surface, the paperwork, and the walks didn’t add value to the organization and were ripe for digitization and automation. But, hidden in those daily interactions were a valuable interdepartmental information exchange, as Mary and Susan could communicate the human stories that the paperwork didn’t collect. Why did an employee move and submit an address change? What did an upcoming promotion mean about subsequent openings?  

All this information was valuable to their respective department heads and leaders to understanding their workforce — but at the time, my younger self couldn’t understand that value. But Mary and Susan did, and they pushed to preserve some of these manual processes in place even as we moved forward with the self-service rollout. As a result, the two office administrators kept their daily routine, even as the interoffice envelope carried fewer pieces of paper.  

Caught at a Crossroad 

A generation later, we find ourselves at a similar inflection point — only this time, the tools are more powerful, and the stakes feel higher. Back then, digitization replaced paper. Today, AI doesn’t just automate — it analyzes, learns, and even makes decisions. 

Generative AI (GenAI) and agentic systems promise a leap in productivity, enabling organizations to do more with less. But with this promise comes a press question: Will AI be used to elevate human potential — or simply reduce headcount? 

As businesses weigh their options, the implications go beyond efficiency. Do we invest in people and expand what’s possible? Or streamline operations and enjoy higher margins? The choices leaders make now will shape not only workflows, but the role of humans in the workplace itself. 

So, where is the balance? 

While AI tools seem to reduce the need for human intervention, there is also a push by many organizations for employees to return-to-office, stemming from a desire to spur human interaction. It’s a little like my dinner table with two teenagers — we each have phones so that we can stay connected with each other throughout the day, but we sit at the dinner table together, all while staring at our phones.  

Tips for Finding the Balance

For organizations and their HR leaders, the question in 2025 is: How do we find the right mix between digital and human connection? Below are three tips. 

1. Create spaces for meaningful human interactions: Just as Mary and Susan’s daily walks resulted in valuable exchanges, HR teams can design intentional opportunities for employees to connect beyond digital workflows. Whether through mentorship programs, team check-ins or casual in-office meetups, these moments can replace the informal, seemingly mundane, interactions that are lost to automation.  
2. Use AI to enhance, not replace, employee engagement: AI-driven tools can streamline administrative work, but they shouldn’t be used to free up time that is meant for deeper, impactful conversations. For instance, AI can handle routine employee inquiries, allowing HR teams to focus on more strategic initiatives and career development discussions.  
3. Build a culture of connection: Technology doesn’t have to isolate employees — it can bring them together. HR professionals can use automation to support collaboration through AI-powered chatbots for pulse surveys, virtual networking events, or peer recognition platforms.  

As we race toward the future of work, I wonder if we shouldn’t look back to Mary and Susan, and how that seemingly mundane paper exchange was actually a way for them to connect at work. Automation and AI tools can help us do more with the resources we have, but we can’t forget the most important part of HR in the process: the human element.  

Yutaka Takagi is the principal product evangelist at isolved, a software company focused on online HR and payroll solutions.