Artificial intelligence is redefining human resources functions worldwide, and in the Middle East, AI adoption is steadily increasing as companies recognise its transformative impact on talent management and employee engagement. Leading this evolution is PeopleStrong, Asia’s leading HR Tech company.

At the recent HR Summit & Expo (HRSE) held on Oct. 23-24 at the DWTC in Dubai, Mrigank Tripathi, President – Growth at PeopleStrong, delivered a keynote titled “HR Trends in the Middle East: How AI Will Be a Force Multiplier.” He explored how organisations are addressing both local and global challenges, prompting a complete rethink of talent management strategies. Also provided valuable insights into trends and expectations from both employee and employer perspectives, illustrating how AI-driven solutions in HR can better align with the evolving needs of today’s workforce and enhance productivity.

Employee Trends: Expectations and Technological Shifts in the Middle East 

Gen Z and Millennials are driving significant changes in workplace expectations. According to Mrigank, “25% of Gen Z regard work-life balance as the number one reason to choose an organisation.” 

This generation prioritizes flexibility, control, and well-being, with many seeking “side hustles” and alternative work arrangements. Notably, 45% of Gen Z and 36% of Millennials have side hustles or participate in the gig economy, and many even choose gap years or delayed entry into the workforce.

To engage this generation fully, companies are beginning to shift away from traditional skill-building towards a holistic approach that considers mind, body, and soul. 

Mrigank explained, “Earlier, it used to be about upskilling on a particular skill. Now, the focus is on engaging the person on all three levels—mind, body, and soul—to create meaningful engagement,” he explained, signaling a more personalised and supportive employee experience.

A third trend among employees is the expectation of advanced technology. They anticipate an easier experience with AI, similar to their personal lives. However, HR departments are not as quick to adopt the technology, with only 22% actively integrating it into their workflows, Mrigank said.  

This disparity shows a need for organisations to bridge the technological gap between employees’ expectations and current practices. Despite this hesitation, 75% of employees already use AI in some aspects of their work, making it evident that AI-driven productivity tools are no longer optional but essential.

Additionally, there is a shift underway from time-based to outcome-based work, with managers increasingly focused on productivity outcomes rather than hours spent on tasks. As highlighted, “71% of businesses are under pressure from management to improve workforce productivity,” underscoring the growing importance of AI in tracking performance and aligning goals with broader organisational objectives.

Employer Trends: AI-Powered Solutions for Talent and Skill Management

For employers, the approach to talent management is also undergoing a transformation, particularly with skill-based talent management coming to the forefront. Companies are revamping employee experience starting from the hiring stage, prioritising candidates’ skill sets over traditional job titles. This shift allows organisations to personalise the employee experience by leveraging AI tools to recommend tailored upskilling opportunities and facilitate continuous learning.

Mrigank pointed out, “An AI-driven system can help people look at courses to upskill and even provide career buddies to guide them,” which adds a level of personalisation to career development. AI-driven talent platforms offer visibility into available roles and growth paths, empowering employees to choose their career trajectories based on transparent, data-informed insights.

However, the pace of AI adoption is a double-edged sword. PeopleStrong’s primary data reveals that 56% of HR leaders feel AI transformation is happening too fast, making it difficult for them to keep up. 

Mrigank emphasised the importance of taking a practical approach, saying, “We at PeopleStrong have been working with AI for a long time, but instead of changing the world, we aim to go back to our customers and meet their needs.”

The Power of AI Agents in HR

One of the most significant shifts that AI brings to HR is through AI agents— AI entities that can autonomously handle specific tasks. Unlike AI copilots that require human direction, agents operate independently, enabling them to perform tasks like drafting job descriptions or assessing candidates without human intervention.

Mrigank described AI agents as “a force multiplier,” adding substantial efficiency to recruiting processes. For example, in recruitment, AI agents can screen resumes and recommend candidates for further assessment, freeing recruiters to focus on high-value activities.

Embedding AI into the entire talent management spectrum, from acquisition to development, opens up new possibilities for HR departments, he explains. 

For example, AI can assist with goal setting in performance management cycles, identify critical roles and succession paths, and provide talent continuity planning through successor recommendations. These features enable a structured, AI-driven approach that is essential for companies aiming to remain competitive in a fast-paced, digital-first environment.

AI is not one-size-fits-all

While AI holds tremendous promise for HR, its deployment requires a tailored approach. Mrigank believes that “every single company will need a different type of agent; you can’t ask for the same one.”

This approach highlights the importance of context-specific AI agents, uniquely designed to align with each organisation’s culture, structure, and goals.

AI is not a one-size-fits-all solution but rather a versatile tool that, when implemented thoughtfully, can significantly boost productivity, engagement, and employee satisfaction. And PeopleStrong’s leadership in embedding Generative AI into HR processes is a testament to the transformative power of technology and its ability to redefine the workplace. As PeopleStrong continues to refine its AI solutions, it is evident, AI’s potential to reshape HR in the Middle East and beyond is just beginning.

The convergence of AI and HR in the Middle East offers immense possibilities, especially as both employees and employers adjust to shifting expectations and technological advancements. 

As PeopleStrong’s work demonstrates, AI is a transformative force capable of addressing the evolving needs of today’s workforce while enhancing operational efficiency.