HR departments are facing their biggest budget cuts in years as companies invest in AI and prioritize other departments, with only 29% of chief financial officers planning to increase HR budgets this year, while nearly the same percentage plan to decrease them. "Some firms are looking to reduce HR operating costs by 20% to 40%," says Ron Seifert, leader of Korn Ferry's North America Workforce Reward and Benefits practice.

Gloat has introduced Gloat Agentic HR, a toolset that leverages business rules and security from major HCM systems such as Oracle, Workday and SuccessFactors to build AI agents that integrate with Microsoft Copilot, Teams and Slack. The move positions Gloat against established players such as ServiceNow, SAP and Oracle in a competitive HR technology market.

HR is at a crossroads because AI is expanding the gap between its traditional role as a cost center and its potential as a strategic partner, writes Brian Elliott, the CEO of Work Forward. HR leaders must embrace AI, focus on strategic thinking, use data-driven metrics and eliminate low-value tasks to remain relevant and drive organizational transformation. Otherwise, HR risks becoming marginalized as AI automates more functions.

Since 2023, Cincinnati Children's Hospital has seen a dramatic 184% increase in active users of its Phenom AI recruiting platform. This growth in adoption is credited to intentional efforts to engage recruiters and hiring managers through targeted peer-led project teams, comprehensive training and ongoing support. The structured approach, which emphasized user benefits and professional development, helped overcome early adoption barriers and ensured that AI recruiting tools were integrated widely and effectively across the organization.

Employee engagement in the US has dropped since 2020, with 8 million fewer engaged workers, according to Gallup. AI has increased productivity but has also led employees to feel less connected and supported, according to a Resume Genius report. Frequent users of AI are more engaged but less loyal, with many actively seeking new jobs.

Employee morale has declined sharply across American offices, with workers describing their environments as joyless and demoralizing. The combination of layoffs, heavier workloads and the removal of small perks like free coffee has created a sense of malaise. Many employees report feeling unfulfilled and fearful about their prospects, while managers struggle to maintain team spirit amid increased responsibilities.

Implementing a new point of sale system requires effective staff training to avoid operational disruptions. This article recommends starting with basic tasks, using a sandbox environment for hands-on practice and identifying lead adopters to assist peers. Creating quick-reference materials and establishing a post-launch feedback loop are also essential for a smooth transition and ongoing proficiency.