Will the modern workplace experience a lasting shift as tech companies and other orgs increasingly downsize, choosing AI over human hiring? Pavel Shynkarenko, founder of HR platform Mellow and a 20-year veteran in financial and HR technologies, says the world is entering a new wave of workforce transformation.
“Shopify and Duolingo are just the beginning—more major tech companies are now openly stating that hiring will only happen when AI cannot handle the task,” warns Shynkarenko.
He says this isn’t merely a temporary cost-cutting measure at a few orgs, but rather a growing trend. “Not long ago, Apple, Amazon and Meta were running pilot projects to optimize workflows using AI without adding new headcount,” he says, insisting that now it’s becoming a system-wide approach.
“Read between the lines and you’ll see,” says Shynkarkeno. “The money isn’t flowing like it used to, hiring is more expensive, but the pressure to grow is still there.”
Downsizing and AI: The impact on HR
For HR professionals specifically, the impact will be profound. “Even before, [HR leaders] were often responsible for explaining the unknown,” says Shynkarenko. “Now, that ‘unknown’ has multiplied tenfold.”
According to the tech founder, the traditional focus on recruitment is becoming less central as organizations downsize by half or even more. He predicts this will impact human resource leaders.
“The HR function will shift toward L&D, process building and managing engagement, rather than just recruitment,” says Shynkarenko.
Shynkarenko’s bottom line is clear: “AI is not a passing trend. It’s here to stay, and this shift won’t be something you can just ‘ride out.’ ”
HR tech in the news
People platform Confirm launched One-Click Performance Reviews, an AI-powered solution that writes performance reviews for managers and employees. This is based on the firm’s Organizational Network Analysis factor (ONA) to measure and visualize workplace interactions.
Salesforce has partnered with Epoch, an employee experience platform, to enhance engagement for its more than 76,000 employees. Epoch aims to help orgs manage internal events and provide post-event metrics for ROI and future planning.
Data and technology company Experian received the National Association of State Workforce Agencies Outstanding Performance Award for the second consecutive year, highlighting its commitment to reducing fraud and maintaining integrity.
Benevity, a social impact software provider, appointed Ian Goldsmith as its first chief AI officer, marking a milestone for the organization. Goldsmith will lead AI deployment to enhance value through machine learning and AI-powered analytics.
WellTheory, a health tech company, in partnership with Maven, revealed outcomes for its virtual solution for autoimmune disease. Employers reported savings, fewer work disruptions and reduced ER visits, plus improvements in pain, anxiety and sleep.
Digital employee experience management Nexthink released research on AI-driven digital transformation. Most IT leaders (92%) foresee increased digital friction, with only 47% of employees ready for technological changes.
Appcast, a recruitment marketing platform, launched Appcast Search Ads, a programmatic recruitment search solution. This new feature within AppcastOne helps employers engage high-intent candidates and improve recruitment marketing.
Payroll Integrations partnered with Dynamis to expand third-party administrators’ (TPAs) access to payroll providers. TPAs can now automate access to payroll data from over 200 providers, improving accuracy and efficiency.
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