Technology, particularly artificial intelligence, remains at the forefront of most HR leaders’ minds.
In 2025, many organisations experimented quickly by launching pilots and testing tools in an effort to ‘keep up’. As a result, we witnessed the rise of AI fatigue: sense of pressure, confusion and scepticism fuelled by rapid change, inflated expectations, and unclear business cases. The conversation is shifting from fear to co-creation with AI – particularly in shaping how it’s used in the workplace. The question is no longer whether AI will replace people, but how humans and AI can complement one another in daily work. AI is no longer viewed as a threat or a novelty. Instead, we’re seeing it as an enabler of human connection – a Digital Ally. Your role as a HR leader is to use AI as your Digital Ally to enhance decision-making, streamline workflows, and free up time for meaningful human interaction. This trend marks a broader shift from automation to humanisation. When AI manages repetitive and time-consuming tasks, HR professionals can focus on coaching, collaboration, problem-solving and culture building – the areas where human insight is most valuable.
However, this transformation won’t happen on its own. To make AI truly supportive rather than disruptive, your business will need to treat implementation as a strategic design effort. This means establishing deep-rooted foundations in three areas:
Intelligence How AI informs human decision-making.
Real-time responsiveness How easily employees can interact with work systems.
Trust How transparent and fair these systems are.
In 2026, success will depend on how well you embed these foundations to make your technology genuinely human-centric.
Digital Ally: Intelligent HR
HR is progressing from manual, gut-instinct decision-making to AI-augmented intelligence. AI is now a very real and very permanent part of our work.
Our People Director, Bruce Fecheyr-Lippens, explains: “We must recognise that AI is now an additional element in our workforce. Just as we have employees and contractors, we now also have AI agents.” In 2026, these AI tools can analyse data, automate tasks, and anticipate workforce needs ahead of time. However, they cannot replicate your human ethics, empathy, or context. According to our Head of AI, Amarendra Gandhi, “The most responsible AI systems are human-in-the-loop systems. The combination of human judgment and AI assistance isn't just safer and fairer, it's more powerful than either acting alone. It will amplify human decision-making.” This year, success will depend on HR leaders’ ability to rethink the operating model: clarifying where automation creates value, where human insight is essential, and how these elements can harmonise in daily work. Intentionally orchestrating these three elements will ultimately create a more responsive and meaningful HR function.
What will Intelligent HR include?
AI-augmented decision-making AI can be used to support decision-making by analysing data to spot patterns, risks, and opportunities, which should then be combined with your human insight to create meaningful action. Agentic AI automating tasks Agentic AI can separate the manual from the meaningful in HR. Repeatable steps can be automated in the background, while people focus on the moments where human insight, relationships and connection truly make a difference. HR & IT collaboration When embedding AI into your strategy, collaborating with an IT team is essential. This blended approach allows you to design secure, ethical AI systems that deliver people-centric outcomes. Redesigning roles and workflows As some functions will inevitably be better served using AI, HR leaders will need to redesign roles and workflows to clarify what will need to be done by humans and what will be augmented by AI.
What will Intelligent HR include?
AI-augmented decision-making AI can be used to support decision-making by analysing data to spot patterns, risks, and opportunities, which should then be combined with your human insight to create meaningful action. Agentic AI automating tasks Agentic AI can separate the manual from the meaningful in HR. Repeatable steps can be automated in the background, while people focus on the moments where human insight, relationships and connection truly make a difference. HR & IT collaboration When embedding AI into your strategy, collaborating with an IT team is essential. This blended approach allows you to design secure, ethical AI systems that deliver people-centric outcomes. Redesigning roles and workflows As some functions will inevitably be better served using AI, HR leaders will need to redesign roles and workflows to clarify what will need to be done by humans and what will be augmented by AI.
Digital Ally: Real-Time HR
The days of rigid systems are over – according to our Business Solution Manager, Magnus Eklöv: “Real-time HR is no longer optional.”
With AI making processes more efficient, employees are no longer happy to wait days or even weeks for responses to queries or reimbursement. Speed and immediacy have become the standard.
In 2026, HR leaders will need to catch up with these evolving demands, especially as younger generations continue to enter the workforce.
Our Global Sales Manager, Pirashan Nagalingam, says, “Companies can no longer ignore digitalisation. Younger employees won’t accept clunky, manual processes. They live with instant apps, and they expect the same at work.”
As more employees expect instant access and mobile-first experiences, HR must shift from reactive support to proactive action to deliver answers, insights and actions in real-time.
What will Real-Time HR include?
Digital Ally: Trustworthy HR
As AI becomes more commonplace in the workforce, trustworthy HR becomes even more important.
HR is shifting from working quietly on opaque processes to delivering transparent, explainable practices that earn employee confidence.
However, as explained by Magnus Eklöv: “Building trust means not only understanding AI’s decisions but also training staff to use it confidently.”
“Most companies haven’t done enough to explain AI to their employees. People see the results but don’t understand how they’re produced.”
In 2026, trust will be a measurable HR metric. Companies that invest in open communication, ethical AI distribution, and watertight employee training will be better positioned to build a resilient, future-ready workplace.
What will Trustworthy HR include?
Transparent, ethical AI practices Studies show that, when AI decisions are explained clearly, employees will view the technology as a support tool instead of a threat, which will significantly improve acceptance. Psychological safety and trust in people HR leaders need to create an internal environment where employees feel safe to speak up, share ideas, and raise concerns, especially as AI reshapes how we interact, collaborate and feel valued. AI Act obligations With the rules of the EU AI Act becoming applicable in August 2026, businesses need to be transparent about how their AI systems work, using tools such as model cards during rollouts to meet compliance and accountability standards. Explainable systems and governance Trust in AI does not come from accuracy alone. It comes from systems that are understandable, auditable, and open to questions. Creating robust governance frameworks ensure technologies remain fair and auditable.
What will Trustworthy HR include?
Transparent, ethical AI practices Studies show that, when AI decisions are explained clearly, employees will view the technology as a support tool instead of a threat, which will significantly improve acceptance. Psychological safety and trust in people HR leaders need to create an internal environment where employees feel safe to speak up, share ideas, and raise concerns, especially as AI reshapes how we interact, collaborate and feel valued. AI Act obligations With the rules of the EU AI Act becoming applicable in August 2026, businesses need to be transparent about how their AI systems work, using tools such as model cards during rollouts to meet compliance and accountability standards. Explainable systems and governance Trust in AI does not come from accuracy alone. It comes from systems that are understandable, auditable, and open to questions. Creating robust governance frameworks ensure technologies remain fair and auditable.
How can HR Leaders use AI as their Digital Ally?
Clarify the operating model
AI integration should be intentional and layered across the organisation. Define which tasks are best handled by AI automation and where human expertise is essential and implement these in your strategy.
“Divide your business into three layers—strategic, operative, and resources. Then cascade an AI strategy through all of them. Without a clear plan, you won’t get value.”
Magnus Eklöv Business Solution Manager, SD Worx
“Technology alone doesn’t solve anything — you need service levels, operations, and continuous improvement.” Pirashan Nagalingam Global Sales Manager, SD Worx
Modernise your service delivery
Meet your employee expectations by implementing instant, responsive support. This would ideally include self-service HR tools, real-time payroll, instant reimbursements, and AI-powered chatbots. You should also integrate real-time compliance tracking and workforce insights to stay ahead of regulatory shifts.
Build trust through responsible AI
You should always ensure your AI systems are transparent, easily explainable, and aligned with ethical standards. This includes encouraging feedback on AI-driven processes, making it easy for employees to raise concerns or ask questions, and preparing for regulations like the EU AI Act.
“HR leaders must build documentation, human-in-the-loop review, transparency and risk management into AI systems rather than adding them afterwards.” Amarendra Gandhi Head of AI, SD Worx
“The most responsible mindset is not ‘we have governance,’ but ‘we are improving governance.’ Treat it as a continuous behaviour, not a one-time rollout.” Amarendra Gandhi Head of AI, SD Worx
Embed ethical AI into your HR strategy
Collaborate with your IT, data, and legal teams to ensure you are embedding AI responsibly. This cross-functional approach will ensure your digital tools are secure, ethical, and reflect your organisation’s values and people-first culture.
Provide digital literacy training
Equip your HR teams and employees with the skills to understand, challenge, and work with AI. This means providing training for AI fluency, fostering psychological safety, and encouraging feedback on digital workflows.