AI is Reshaping the HR Operating Model: Here’s What 15 Leading Companies Discovered

Written by Volker Jacobs, CEO and Founder of TI People, board member at FOUNT Global

This research was co-created with 151 human experts from 15 major companies who provided more than 2,500 data points to validate and train multiple large language models. Industry experts including Andrew Spence , Jonathan Ferrar , Jörg Stegert , Stefan Hoffmann and others contributed to validating the findings.

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The Traditional HR Model is Being Squeezed from Both Directions

The HR function stands at a pivotal moment. After decades of following the three-pillar model (Centers of Excellence, Business Partners, and Shared Services), the HR operating model is being fundamentally disrupted by AI from two directions simultaneously:

From the top: Business leaders increasingly demand integrated solutions to complex people challenges rather than siloed HR expertise.

From the bottom: AI is rapidly automating transactional tasks while extending into domains previously considered territory for experts.

Our groundbreaking research, co-created with 15 major European enterprises including BASF, Deutsche Bahn, Novartis, thyssenkrupp, Symrise AG, Brose Group, GXO Logistics, Inc. and validated by industry experts including David Green 🇺🇦, John Boudreau, Thomas Otter, and others reveals exactly how AI is transforming HR roles and activities.

The Numbers That Matter

For a 30,000-employee company, our research shows:

• 29% average efficiency potential across HR functions
• €5.2M in annual cost savings potential that can be reinvested
• HR Specialist Operations roles face 50% efficiency impact (highest among all roles)
• HR Business Partners see 19% efficiency potential while being pushed to deliver more strategic value

The data reveals that AI isn’t just automating HR—it’s transforming how value is created across three dimensions:

1. Efficiency: Automating routine tasks to free up HR capacity
2. Innovation: Enabling entirely new HR services that were previously impossible
3. Personalization & Democratization: Extending high-quality HR services to broader employee populations in a more personalized way

“Really fascinating work – and based on the work, it’s made me realize that the impact on HR may be higher than I’d previously thought.” @David Green, Co-Author of Excellence in People Analytics

The research leading up to these and many more detailed insights can be easily infused in any large organization. It has been compiled into an ‘AI Impact Assessment’ tool, providing comprehensive, company-specific insights in just two days.

The New HR Operating Model

Our research validates a shift toward product-oriented HR structures, where:

• Product Managers own end-to-end HR products aligned to key user needs
• Problem Solvers work across traditional boundaries to address complex business challenges
• Service Delivery teams orchestrate AI-human collaboration
• AI handles increasing portions of transactional and analytical work

What’s striking is how differently AI impacts various HR roles. While operational roles like HR Operations Specialists (50%) and HR Controlling/Analytics (32%) show the highest efficiency potential, even strategic roles like HR Business Partners (19%) will see meaningful transformation.

Three Critical Steps for CHROs

Based on our research with companies like GEA Group, R+V Versicherung, and SEW Eurodrive, here are the essential first steps:

1. Assess your starting point: Evaluate your current operating model maturity, AI readiness, technology landscape, workforce capabilities, and value creation potential.
2. Define your target HR operating model: Design your product-oriented structure with clear role definitions, governance framework, and value measurement system.
3. Build product management capabilities: Most HR functions have limited experience with product management approaches.

Organizations implementing these principles show 40% higher returns on technology investments by redefining HR offerings around user needs rather than functional domains.

The Skills Gap Challenge

The transformation extends beyond technology. Nearly half (47%) of organizations cite insufficient training as their primary barrier to AI adoption. Our research shows HR functions need a balanced approach of 60% reskilling existing staff and 40% strategic hiring across most roles.

The five most critical skills for future HR professionals:

• AI & Machine Learning Literacy
• Human-Centered Design
• Digital Product Management
• Data Science & Analytics
• Ethical AI Governance

What’s Next?

The tipping point for AI in HR has arrived. Generative AI represents the most significant opportunity to reshape HR in decades. ‘Squaring the circle’ and delivering more (business value) for less (HR cost) becomes possible.

For the full research or to discuss how these findings apply to your organization, contact Volker for a personalized readout session.

He’ll share detailed AI impact projections by HR role, skills gap assessments, and practical implementation strategies using product management principles.

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