Explore how AI-powered, human-centric HR is redefining the enterprise-and what it means for leaders navigating the future of work. The HR function is at an inflection point. Once a compliance-driven cost center, HR is now evolving into a strategic intelligence hub, orchestrating experiences and outcomes across the employee lifecycle. This transformation is powered by AI, automation, and human-centered design, underpinned by strong governance and agile operating models.

      Why now?

      Disruption is the new normal-skills shortages, hybrid work, and digital overload have left traditional HR models fragmented and reactive. The next phase is flow: an operating state where HR is embedded in business workflows, delivering frictionless experiences and real-time insights. Technology is the catalyst, but human judgment remains the control system.

      Key forces shaping HR’s future

      Digital-first strategies and GenAI adoption are accelerating

      Employee expectations mirror consumer-grade experiences-personalised, seamless, and purpose-driven

      Data-driven agility is non-negotiable: predictive analytics and relational insights are now core to workforce planning and decision-making

      The workplace is being reshaped by these digital-first strategies, hybrid work models, and rising employee expectations. HR now drives decisions on talent, performance, and workforce planning, while automation handles routine tasks and human empathy ensures fairness and trust.


      Key highlights of the report include:

      • HR technology market

        The HR technology market is undergoing rapid evolution, driven by adoption of HCM platforms, LXPs, EX tools, and GenAI copilots. GenAI is already transforming JD creation, onboarding, and performance management, with enterprises prioritising scalability and analytics

      • Governance blueprint

        Strong governance is essential for safe and ethical AI adoption in HR. KPMG recommends an AI-in-HR Center of Excellence, clear data ownership, and prompt standards to ensure fairness, explainability, and compliance-building trust while enabling smarter decisions

      • Implementation roadmap

        A 12-month phased roadmap moves organisations from pilot to production through mobilisation, pilot build, scale-out, and industrialisation. Success depends on product ownership, data excellence, and strict gates for bias, explainability, and adoption readiness

      • Change management

        Transformation requires AI literacy, stakeholder engagement, and cultural readiness. HR teams must adapt through capability building and role redesign, shifting from routine tasks to strategic advisory roles, supported by continuous communication and governance rhythms


      AI is not a replacement but a strategic partner, freeing up significant HR time for high-value priorities like workforce planning, DEI, and employee experience. To unlock this potential, governance is non-negotiable-bias checks, explainability, and human-in-the-loop oversight are essential for trust and compliance. HR must evolve its operating model into a productised, data-centric structure with embedded analytics and agile delivery. To make this real, organisations must invest in scalable AI platforms, upskill HR teams, and foster a culture of augmentation over automation, while tracking value through a balanced scorecard of employee productivity, employee experience, and compliance.

      Smart tech with human touch – The future of HR with AI

      Strategic HR roadmap: Shift from reactive to agile, insight-led enablers via AI tech, human-centered design & governed operating models

      Explainable AI (XAI) and enterprise quality management systems

      Key Contacts

      Akhilesh Tuteja

      Partner & National Leader, Clients and Markets

      KPMG in India

      Sunit Sinha

      Partner and Head – Human Capital Advisory Solutions

      KPMG in India

      Purushothaman KG

      Partner and Head Technology Transformation, Sector Head - Telecommunications

      KPMG in India

      Maneesha Garg

      Partner & Head – Managed Services, Forensic, F&A, HR, Learning, Insight Led sales, Digital business operations and Sourcing

      KPMG in India

      How can KPMG in India help

      In a rapidly transforming world of work, organisations need to continuously evolve and adapt to the changing market dynamics for them to grow, transform and thrive

      Discover endless opportunities with AI – unlock untapped value, innovation, and strategy, underpinned by trust and guided expertise

      Transformation driven by data, enabled by digital technology, and led by business initiatives

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