HR bosses predict AI will not cause ‘significant reduction’ in employee numbers

The supposed impact of artificial intelligence (AI) on employment practices and headcount figures is yet to be noticed by Irish human resources (HR) bosses, with only 4 per cent expecting a “significant reduction” in employee numbers within the next three years, research reveals.A quarter of HR professionals in Ireland indicated that AI should have “minimal impact” on their workplace structures, according to a national survey by business group Ibec. One in three foresaw little to no change in employee headcount, albeit with a “significant redesign of existing roles and responsibilities”. Only 3 per cent of respondents expect an increase in employee numbers due to the integration of AI-specialised roles within their organisation. Aside from AI’s impact on those already employed, the survey of 325 HR leaders provided insight on the recruitment process itself: 30 per cent of respondents said AI integration was “not at all” driving a shift from an experience-based competency assessment to a skills-based talent strategy.READ MOREA further 34 per cent pointed to only “minor changes or experimentation” with its hiring process as a result of AI, while 17 per cent named “moderate changes” such as individualised departmental approach.HR leaders listed a number of barriers to full adoption of AI services, with 55 per cent of respondents naming “data privacy and security” as their primary concern. This was a seven percentage point decrease from last year’s finding.The survey recorded a 13 percentage point drop in the proportion of respondents who pointed to a “lack of internal knowledge or skills” as a factor preventing them from fully embracing the new technology, down from 65 per cent in 2025 to 52 per cent this year.Microsoft president Brad Smith: Ireland is “well-positioned for future of AI”Maeve McElwee, Ibec’s executive director for employer relations, said: “Unsurprisingly, AI and workforce transition remain front and centre of HR operations, given the scale of organisational change under way.“However, there is genuine confidence that while some roles may change, the narrative of job displacement does not currently reflect what HR leaders are seeing. “What we are seeing from the feedback is that the challenge for businesses lies in gaining a better understanding of how they capture and measure the productivity benefits of AI across their business operations.”Nearly one in five (19 per cent) of survey respondents said they “do not anticipate AI driving significant value” in their HR departments within the 18 months. Three-fifths said it would improve “HR operations efficiency” such as automating administrative workflows, managing contracts and taking meeting minutes. More than a third of respondents (36 per cent) expected AI practices to improve operational efficiency for “talent acquisition” such as reducing the amount of time it takes to recruit a new employee.