From automation to agency: Why agentic AI is a new era for HR tech

AI in HR has come a long way, from basic automation handling repetitive tasks, to generative AI (Gen AI) creating job descriptions and analyzing employee sentiment.

But the next evolution is here: Agentic AI – systems that don’t just analyze or generate, but act.

Unlike traditional AI or automation, agentic AI agents can autonomously orchestrate tasks, adapt in real time, and collaborate across systems.

Imagine a recruiter bot that identifies top candidates, schedules interviews with hiring managers, and reschedules when conflicts arise – all without human input.

That’s not science fiction anymore; it’s the next frontier in HR technology.

Still, understanding this shift remains a challenge for many.

In a recent Everest Group poll of HR leaders, only 22% said they fully understand the difference between traditional AI and agentic AI, while 49% admitted they “kind of know but could use a refresher”, and 29% said they were completely unsure.

The takeaway? There’s growing curiosity, but also confusion, around how agentic AI truly changes the game.

Agentic AI maturity: It’s still early days

Despite the excitement, agentic AI maturity remains low.

According to a live poll conducted during a recent Everest Group webinar, 86% of respondents believe agentic AI solutions are still in the early or mid-stages of maturity, with 38% placing them around Level 2 (AI assistants) and 48% between Levels 2 and 3 (Quasi agents).

Only 1% believe we’ve reached ‘Level 4 autonomy’ (true agents), where systems make strategic, self-directed decisions.

This confirms that fully autonomous, self-reflecting ‘true agents’ are still on the horizon, though early adopters are beginning to unlock measurable value at the ‘AI assistant’ and ‘quasi-agent’ stages.

Why HR is leading the agentic AI charge

Everest Group’s research reveals that 73% of agentic AI adoption today is happening across horizontal functions.

HR is emerging as one of the top targets, ahead of Finance, Customer Service, and IT.

Why HR? Because it sits at the intersection of process complexity and human nuance.

Recruiting, onboarding, learning, and performance management all involve data-rich, repeatable processes that also require context and personalization – a perfect testing ground for agentic AI.

What’s working with AI agents: Tangible gains and early wins

Organizations experimenting with agentic AI in HR are already reporting clear value across five key dimensions:

1. Operational efficiency – Automating complex workflows like onboarding and benefits administration has reduced manual effort and turnaround time.
2. Productivity uplift – HR teams can now focus on workforce planning and DE&I rather than administrative tasks.
3. Cost optimization – Routine processes are being streamlined, cutting external vendor reliance.
4. Quality and compliance – Agentic systems improve consistency and auditability.
5. Employee experience – Personalized, context-aware interactions enhance engagement and support — especially in hybrid work environments.

Together, these improvements position HR not just as an adopter, but as a catalyst for enterprise-wide agentic AI transformation.

Where enterprises are on the agentic AI journey

When asked about their organization’s stage in adopting agentic AI, 53% of HR and business leaders said they’re still in the pilot or experimentation phase (Phase 1), testing targeted use cases to build confidence and return on investment.

Meanwhile, 21% have progressed into multi-function scaling (Phase 2), and just 3% have reached transformation-level integration (Phase 3). A cautious 17% are still in pre-pilot readiness (Phase 0), while 6% haven’t yet started.

This data reflects an early but accelerating adoption curve – one where data readiness, leadership vision, and cultural openness determine who pulls ahead.

Choosing the right partners with AI agents

Agentic AI in HR isn’t a one-vendor solution.

In Everest Group’s survey, 42% of participants said they prefer partnering with enterprise HR platforms (e.g. HCMs and other HR-focused platforms) to build agentic capabilities, 32% with specialized providers (e.g. Ema), and 17% with service firms (e.g. Accenture, IBM) that offer broader transformation support.

Interestingly, only 8% favor hyper-scalers such as AWS, Microsoft, or Google as their starting point.

This underscores a practical trend: HR leaders want integrated, domain-specific intelligence, not just AI infrastructure.

How to avoid the agentic AI hype trap

Agentic AI is not plug-and-play.

Everest Group’s readiness framework highlights the four pillars that make or break adoption:

• Leadership and cultural readiness: Visionary sponsors and openness to change.
• Data and systems maturity: Integrated, high-quality datasets.
• AI and digital infrastructure: Scalable, secure platforms.
• Process governance: Clear ownership and compliance mechanisms.

Organizations lacking these foundations risk creating ‘islands of automation’ that look impressive but fail to scale.

The road ahead for HR and agentic AI

As agentic AI evolves, HR has a critical role to play along with other teams such as IT and AI transformation offices.

In HR, what started as automation of the mundane could soon mean self-optimizing ecosystems – where agents learn, collaborate, and improve continuously.

The journey is still early, but the direction is unmistakable. Agentic AI won’t just support HR – it will transform how people, processes, and technology interact across the business.

For now, HR leaders can take a pragmatic approach: start small, measure relentlessly, and build for scale.

The organizations that do will not only keep pace with the technology – they’ll define what the future of work looks like.

Sharath Hari is Vice President at Everest Group – he will be digging more into the agentic AI topic at UNLEASH World 2025, 20-22 October. There’s still time to grab a pass!