Mumbai: If HR once hired by hunch, it is now clocking in with code. Across corporate India, people decisions are increasingly being driven by data rather than instinct, as companies embrace artificial intelligence and workforce analytics to rethink how they hire, train and retain talent.
A new study by Deloitte, based on responses from more than 85 organisations across India, shows that HR departments are moving beyond their traditional administrative role to become strategic partners in business growth. The shift comes as artificial intelligence reshapes workplaces worldwide, prompting employers to rethink both jobs and skills.
While AI has often been linked with job losses, the broader employment picture is more nuanced. According to the World Economic Forum’s Future of Jobs Report, automation could displace around 85 million roles globally but is also expected to create 97 million new jobs requiring digital expertise, critical thinking and cross-functional collaboration.
The trend is echoed in the Economic Survey 2023-24 by the Government of India, which says artificial intelligence has the potential to significantly improve productivity while highlighting the need to carefully manage workforce transitions in a labour-intensive economy.
The Deloitte survey suggests Indian businesses have already begun that transition. Half of the organisations surveyed have integrated AI into their core HR and operational processes. More than 60 per cent reported a clear shift away from repetitive, task-oriented roles towards jobs that require creativity, judgement and complex problem-solving.
HR’s new playbook
The report argues that the familiar HR framework of “Attract, Develop and Retain” is giving way to a more agile “Access, Curate and Engage” model.
Nearly 80 per cent of organisations have strengthened contingent workforce strategies and flexible staffing models, reflecting the rapid expansion of India’s gig economy, a trend also highlighted by NASSCOM.
On the skills front, 76 per cent of companies are actively assessing capability gaps, while 59 per cent are investing in cross-functional learning, personalised development programmes and internal mobility instead of relying solely on conventional training.
Employee retention is also being reimagined. Around 81 per cent of organisations are redesigning retention strategies with greater emphasis on employee experience, wellbeing and broader career opportunities. At the same time, 80 per cent are working to strengthen workplace culture and inclusion, while half are using AI-powered collaboration tools to support hybrid work environments.
From paperwork to predictive analytics
The report shows how people analytics is steadily transforming HR from a process-heavy function into a strategic business adviser.
Generative AI and agentic AI are increasingly supporting recruitment through automated CV matching and virtual interview screening. These technologies are also being used to personalise onboarding, monitor employee performance, identify skill gaps and even predict potential resignations through workforce sentiment analysis.
Instead of reacting to problems after they emerge, HR teams are increasingly trying to anticipate them before they affect the business.
Progress, but at different speeds
Deloitte’s four-stage People Analytics Maturity Model highlights gradual but consistent progress over the past four years.
The proportion of organisations at the lowest maturity level fell from 46 per cent in 2022 to 28 per cent in 2026. Meanwhile, organisations operating at advanced maturity levels rose steadily from 18 per cent in 2022 to 33 per cent in 2023 before reaching nearly 40 per cent in 2026.
The technology and IT-enabled services sector continues to lead the way, with more than 55 per cent of organisations reaching advanced maturity. FMCG and FMCD companies have also made notable gains, while life sciences and healthcare firms have seen a significant number move into higher maturity categories.
Retail continues to face challenges because of limited resources and fragmented data systems, with only around 30 per cent of organisations reaching advanced levels. Manufacturing also trails, with more than 60 per cent still in the early stages of maturity. Energy, resources and industrial companies remain the slowest adopters, with almost 80 per cent continuing to operate at lower maturity levels.
Governance gets stronger, infrastructure slows
Among the six pillars measured in the study, alignment between business strategy and people analytics recorded the strongest improvement, underlining the growing role of workforce data in boardroom decision-making.
Data governance emerged as the highest-scoring category overall, driven in part by compliance requirements under India’s Digital Personal Data Protection Act. User engagement, data culture and HR team capability also improved steadily, although the report notes that many organisations still struggle to embed data-driven decision-making across middle management.
One area where progress has slowed is data infrastructure. While many companies rapidly built foundational systems over recent years, integration across platforms has not kept pace, limiting the full value of workforce analytics.
Plenty of data, room for better decisions
Despite growing investment in AI, the report highlights several challenges ahead.
More than 70 per cent of organisations still rely on static presentation slides instead of real-time dashboards to communicate workforce insights. Many also continue to face difficulties translating predictive analytics into day-to-day business decisions, pointing to the need for stronger data literacy and better-connected technology systems.
As India’s workplaces continue to blend human expertise with artificial intelligence, the companies that combine data-driven decision-making with a people-first approach are likely to gain the biggest competitive advantage. In HR’s next chapter, instinct still has a role to play, but increasingly, the numbers are calling the shots.