AI is redefining what human connection at work looks like.

In a recent roundtable discussion held under Chatham House Rule, HR leaders joined Dr. Caitlynn Sendra, TKTKT at SAP SuccessFactors for a candid conversation into early signals of how agentic AI is transforming organizations and workforces.

Employees are embracing AI as more than just technology

Research from SAP SuccessFactors found some startling trends beginning to emerge as more workers use and become comfortable with AI tools:

• 22% of employees would prefer to celebrate their successes with an AI agent rather than a human coworker.
• 23% of employees would choose to share a laugh during difficult times with an AI agent.
• 30% of employees would prefer having an AI agent listen when they’re stressed or frustrated instead of turning to a human colleague.

This shows workers are acclimatizing to treating agentic AI the same way they would a human colleague, seeking recognition and connection. Furthermore, four in 10 employees already turn to AI for emotional support about work issues.

Boardroom participants expressed differing opinions; some were surprised by the findings, while others stated it is a natural progression of how people use AI in their personal lives being brought into the workplace.

However, the difference in how leaders view agentic AI could not be starker. The research found that just over eight in 10 HR leaders view agentic AI as a tool, as opposed to virtual teammates.

HR and business leaders must look beyond agentic AI as just a tool

The risk for HR leaders is becoming out of touch with how workers use AI and how they feel more broadly. More acutely, there is potentially significant cost of inaction for organizations.

According to SAP SuccessFactor’s research, as many as four in 10 employees already turn to AI for emotional support about work issues – meaning they are not receiving the requisite levels of support from colleagues or managers.

But the drivers for this are unclear: are employees turning to AI for emotional support in a vacuum, or is it also the case that people are feeling unsupported at work?

Discussion participants acknowledged that this is a slippery slope, particularly when AI has no context – such as performance reviews – with which to offer accurate or helpful support.

Leaders will also need to be aware of positive feedback loops that AI can offer workers; without the critical thinking capacity of human workers and managers to challenge employees, they may fall into behaviors based on engagement with AI that borders on sycophantic.

As such, there is both an opportunity and responsibility for HR leaders to implement AI that sits between a tool and a teammate – a ‘toolmate’ – that aligns with the needs organizational strategy and how employees use the tools already.

Managers are in line for the biggest change from AI agents

Agentic AI is also redefining what leadership means, especially the role of managers in an organization where employees are turning to AI for support.

The research found more than half (59%) of employees would prefer an AI agent over the current people manager, but simultaneously 80% of employees believe AI agents should assist their work rather than oversee it.

Dr Sendra highlighted that this evidences that managers are struggling to provider workers support, coaching and feedback, but more importantly raises the question of where does this leave managers in the future of work?

There are two potential futures: One where managers are replaced by AI agents, and one where managers are enabled and improved by AI.

HR leaders in the room agreed that the enablement future was the desired path, with some predicting a mixture of the two outcomes.

Although more integration of AI agents will most likely result in the need for fewer managers in the organizational structure, AI can also strategically help managers to improve and fulfil the human needs of workers.

There was a clear consensus that managers are not currently prepared to focus solely on the responsibilities left over – mentoring, coaching, high strategic work – if AI were to take away administrative tasks overnight.

The challenge for HR leaders is to ensure managers are enabled by AI, understand how employees use these tools, and focus on the human element of management.

The blueprint for an agentic AI future

Wrapping up the discussion, Dr Sendra detailed the SAP SuccessFactor’s four-point blueprint for redefining leadership and connection in the agentic AI era:

• Growing comfort with agents as ‘toolmates’ can offer significant organizational benefits if managed
• As agents are integrated into teams, HR must define the balance between empowering employees to maximize agentic capabilities while preserving the aspects of work that make them feel connected and engaged.
• Use agents to raise the performance floor of managers by providing real-time coaching, conversation guidance, and decision support tools.
• Use agents to scale management excellence by modeling and scaling the practices of your top-performing managers, providing personalized support that is suited to each employee’s unique needs.