From change to opportunity: the leadership role of HR in strategic AI change

When HR systems fail, it is rarely due to the technology alone. More often, it is due to a lack of employee involvement, legal issues or a corporate culture that does not support change. Whether AI-supported applicant tools, digital time recording systems, global HR platforms or people analytics solutions: Anyone who implements such tools without actively involving the works council, data protection and employees risks not only resistance and acceptance problems, but also costly legal conflicts.

Successful change management in HR therefore means understanding the introduction of new systems as a holistic process: Innovations must function technically, be legally secured and culturally anchored. This is the only way to create the trust needed to sustainably shape digital HR transformations and fully utilise their potential.

For this reason, HR departments today are far more than administrative units, but should be seen as central drivers of strategic transformation and taken seriously. A structured approach that combines the following three elements positions HR not only as an implementer of new systems, but also as a driving force for sustainable change.

1. Involve stakeholders at an early stage: Employees, managers and the works council should be involved in the process from the outset. Only if their interests and concerns are taken into account will the necessary acceptance for change be achieved.
2. Clear communication and targeted training: Transformation requires transparency. Providing clear information about goals, benefits and effects and creating parallel training programmes promotes security and motivation.
3. Take the legal framework into account: Every change in HR also touches on labour law issues, ranging from co-determination and contract design to data protection. If these are integrated at an early stage, conflicts and delays can be avoided.

Changes in HR processes (human resources processes) are legally sensitive. Section 87 of the Works Constitution Act (BetrVG) in particular obliges companies to involve works councils in the introduction and use of certain new technical equipment. Violations can not only lead to legal proceedings, but also cause lasting damage to employee trust. It can therefore make sense to involve a conciliation committee at an early stage in the event of conflicts.

Employment contracts, working hours or areas of responsibility must not be tacitly adjusted either. Changes should be made by means of a change agreement. Cancellation in accordance with Section 2 of the Protection against Dismissal Act (KSchG) is only the last resort. Hidden changes, for example through the creeping expansion of responsibilities, can be seen as a breach of the right to issue instructions in accordance with Section 106 of the German Trade Regulation Act (GewO).

Digital HR processes access particularly sensitive employee and applicant data. Strict requirements of the General Data Protection Regulation (GDPR) apply: Data may only be processed for a specific purpose, transparently and for a limited period of time. HR departments must create secure processes for this, train employees regularly and check the legal basis of all data processing. Consent is a particularly sensitive issue: In the employment relationship, its voluntariness is often doubtful due to the power it confers. It is only effective if it is unambiguous, informed, specific and given without pressure.

The use of AI in HR promises to increase efficiency, particularly in recruitment processes or salary reviews. At the same time, automated decisions harbour considerable risks. Discrimination can also occur when companies rely on tools from third-party providers. Employers are liable in any case. In order to utilise opportunities and avoid risks, three measures are once again key:

1. Regularly test algorithms: AI systems must be continuously checked for possible bias. Only through continuous evaluation can discriminatory patterns be recognised and corrected at an early stage.
2. Ensure human control: Decisions should not be based on AI alone. Professionally qualified HR managers must evaluate, categorise and, if necessary, correct results.
3. Offer further training on AI skills: Employees need expertise in dealing with AI in order to be able to critically scrutinise systems and use them responsibly. Training on data ethics, transparency and practical application scenarios creates trust.

The current study "Generative AI in the German Economy 2025" shows that only 26% of the companies surveyed have developed a company-wide strategy for the responsible use of AI, meaning that the majority are still working on establishing the technology through clear guidelines, bias tests and accompanying training. A company training strategy, for example via company agreements or funding programmes such as the Qualification Opportunities Act, also supports acceptance and skills development.

As part of a global transformation project, a new software solution was introduced in 42 countries with an impact on over 28,000 employees. The complexity of the project lay not only in the technical implementation, but in particular in the large number of departments involved, the different expectations of the stakeholders and the cultural and organisational differences between the markets.

The decisive factor was an integrated approach consisting of change management, taking into account applicable legislation, communication and training, supplemented by regular lessons learnt sessions for continuous improvement.

The result: the transformation was implemented successfully, legally effective and sustainably in all 42 countries. The change, communication and training measures met with a high level of acceptance among local stakeholders and attracted widespread attention throughout the company. This example impressively underlines how important a structured and adaptable change management approach is for the success of digitalisation projects in HR departments.

HR is not at the edge, but at the centre of the transformation. It is crucial to adhere to legal guidelines, actively involve employees and communicate openly. Legal expertise does not act as a brake, but as a driver, shaper and pioneer, because it can create the security on which innovation and cultural change can build.  If you recognise yourself in these challenges, become active and bring change to your organisation with the right expertise in order to implement new technologies quickly, compliantly and transparently.