'Agentic systems… are being deployed to enable more autonomous and context-aware HR operations'
The use of agentic artificial intelligence is starting to take shape in HR systems as providers explore its transformative potential, according to a new report.
Agentic AI, as described by Nvidia, refers to an AI system that "uses sophisticated reasoning and iterative planning to autonomously solve complex, multi-step problems."
"It's set to enhance productivity and operations across industries," said Erik Pounds, director of product marketing at NVIDIA, in a blog post.
A new report from the Information Services Group (ISG) revealed that agentic AI is beginning to gain traction among multiprocess human resources outsourcing (MPHRO) services providers as they explore its "transformative potential."
"Although still in its early stages, agentic systems that combine large language models with workflow execution capabilities are being deployed to enable more autonomous and context-aware HR operations," the ISG report stated.
It noted that these systems are able to initiate actions, manage routine tasks, and personalise support with minimal human intervention.
"While nascent, agentic AI has the potential to create self-evolving HR services that anticipate employee needs, allowing HR teams to focus on strategic priorities," it added.
The rise of agentic AI comes in an era of hybrid and borderless workforces, which the report noted has seen employees' expectations for seamless digital support reaching new heights.
"AI and agentic systems enable providers to transcend standardised service delivery by analysing behaviour, intent, and sentiment in real time, enabling personalised interactions and the proactive presentation of relevant content."
The introduction of agentic AI systems is the next step for MPHRO providers that have AI integrated across their value chain, according to the report.
Among the processes where AI has been included are triaging employee and manager queries, orchestrating processes, analysing documents, understanding sentiment, and generating predictive insights.
"AI is emerging as the backbone of intelligent HR outsourcing, powering next-generation operations," the report stated. "The objective is to scale AI across HR touchpoints, making it an integral part of everyday interactions, including case management, workforce planning, and talent analytics."
ISG's findings line up with the estimated surge in the adoption rate of agentic AI tools in workplaces.
Chief human resources officers in a recent Salesforce poll said they expect agentic AI adoption to jump by 327% over the next two years.
Four in five of them even expect that most workforces will have humans and AI agents working together within five years.
For MPHRO service providers, the ISG report noted that those who will be able to "align digital transformation with enterprise strategy, deliver intelligent operations, and prioritise employee centricity will lead the next wave of MPHRO partnerships."
"With generative AI (GenAI) and agentic AI redefining service delivery and experience design, the next decade of MPHRO will be characterised by speed, intelligence, personalisation, and purpose."
