Defining tech in 2025 — AI agents

Despite slow take-up in HR and mixed reports about the return on investment (ROI), global executives see AI as the top business priority and the biggest potential value driver in 2025. Agentic AI is transforming company systems, processes and the workforce, and HR leaders who don’t prepare will be left behind.
To clarify, agentic AI isn’t exactly new. It already shapes our lives and can take many forms, from simple thermostats to air traffic control systems. But the next generation of agents running on large language models (LLMs) can function in a way that seems almost human.
The shift from automation to agency
Agentic AI is a complex, autonomous system that uses a mix of technologies to achieve goals without relying on constant human input. It learns, perceives, reasons, plans and even makes decisions by combining:
- The efficiency of robotic process automation (RPA)
- The natural language processing (NLP) of chatbots
- The trial-and-error of machine learning (ML)
- The processing power of LLMs
- The data-driven logic of predictive AI
- The novel outputs of generative AI (Gen AI)
The complementary features of these technologies are critical to delivering the benefits of agentic AI:
The next level of human-machine teaming
Nearly half (47%) of executives believe rethinking talent strategies in light of increased AI use will deliver ROI in 2025.
As companies focus on the tools and capabilities they truly need, vendors and in-house teams are building AI agents that specialize in different functions. These agents might collaborate via multi-agent models, or even human-machine teams that work toward a shared goal.
Here are some common types of agents and how they could work with humans:
- Conversational agents support a range of self-service tasks, from workers’ time-off requests to managers checking employee availability.
- Functional agents can take on certain personas or roles, like a recruiting agent to screen candidates or explain role requirements.
- Supervisory agents might delegate tasks to other agents, assess workforce metrics in real time, and create reports for human managers.
- Utility agents support tasks at the direction of supervisory agents, like completing enrollment forms or sending routine notifications.
- All agents could, in theory, request human input when needed to mitigate risk — though it’s unlikely that every agent will be designed this way.
Navigating this fresh division of labor requires work design: deconstructing jobs into tasks; identifying which tasks are best performed by humans, technology or a combination of the two; and reconstructing new ways of working. The rise of agents allows for human input that’s less constant and more thoughtful, and thus fundamentally changes the nature of work. Many employees will pivot from task execution and prompt engineering to applying uniquely human skills such as empathy, creativity and ethical AI governance.
Enterprise tech and the human workforce are not the same
84% of HR leaders predict the HR function will become more automated and tech-enabled.
Designing talent processes around skills is one of HR leaders’ top three priorities in 2025.
While HR and IT clearly aren’t merging anytime soon, managing human-machine teams will require both functions to work together and learn from each other. IT might focus more on orchestrating the optimal combination of technologies; HR can help business leaders redesign work around AI’s capabilities while ensuring the seamless development and deployment of the new skills required.
These joint efforts might also include a system of record for agents. Much like human capital management (HCM) software or a human resources information system (HRIS), an agent system of record can help organizations manage in-house and third-party agents, from onboarding to monitoring to compliance. This becomes more important as more agents get added to the company roster.
Charting a path to thrive with agentic AI
This is the Year of Agentic AI — and with HR functions on track to show early achievements, the future of work is brighter than ever. Executives think AI and automation will have the biggest impact on cost optimization this year, so conversations around cost and efficiency can help secure buy-in for agents. But the greatest return comes from empowering people to do more impactful work.
As business leaders double down on AI this year, maxing out ROI requires a full-scale digital transformation. It’s about realigning every part of the business around AI: core systems and processes, innovation and strategy, insights and reporting, analytics and decision-making, team structures and tech stacks, governance and compliance, investments and risk management.
Many organizations have begun their AI journey, and they’re ready to keep scaling. If you want to better understand or even deploy AI agents, here’s what to consider:
-
Lead with the problem you already haveThe secret to HR tech success applies to agentic AI, too. Implementing tech is one thing, but deploying for outcomes is another. Business strategy leads technology strategy, which then shapes decisions around tools and use cases. Avoid shiny object syndrome by leading with the problem you’re trying to solve.
-
Technology doesn’t change the way you work; you doAny technology will fall short of its intended value if we fail to design for change enablement, data fitness, strong governance and continuous improvement. This requires a rethink around work and role design, measuring productivity, and optimizing the digital workforce experience.
-
Cost versus valueWe’re all still learning how agentic AI will scale, including how it’s priced and who will absorb the costs. If a vendor offers agentic AI capabilities, prepare for cost models to evolve over time. And lean into workforce analytics, skills-powered work models, and a tech-enabled HR function to drive short-term impact and long-term value.
-
Rethink everythingAgents are only as good as the data, systems and workflows they connect to. Engaging in broader efforts like work design and digital transformation can help maximize the return on your AI investments.
Global HR Digital Transformation & AI Leader, Mercer
Senior Partner, Global Transformation Services Leader
AI Strategy, Innovation and Solutions Leader, Mercer
Global Leader, HR Transformation and Technology Advisor, Mercer
Related products for purchase
-
Talent mobilityA close look at multinational companies' host-based approaches for temporary international assignments across all geographies, whether purely host-based or…
-
Compensation data
Compensation Fundamentals
Build your team’s knowledge with a selection of mircolearning on some of the foundational concepts and activities related to compensation. -
Talent strategy
Workforce Turnover Around the World
Monitor employee movement trends in, out, and within companies around the world with data on turnover, workforce changes, hot skills and more.
Related solutions
-
Attract & retain talent
Strategic workforce planning
Mercer’s strategic workforce planning solutions provide a rational business basis to prioritise, develop and fund the people practices needed to support business… -
Talent & transformation
Organisation design
Mercer’s organisation design consulting can help you transition from a traditional multilayered organisation to a simple, agile and distributed structure. -
Employee experience design
Mercer’s employee experience design uses design-thinking principles to define and shape solutions to meet your people’s needs more effectively and to bring out the…
Related insights
-
Managing people risks in the age of technological disruption. Are you prepared?
Embracing technological innovations is one of the greatest opportunities for organizations today. However, disruptions create significant risks for businesses when… -
Skills-powered organisations
Want AI-Driven Productivity? Redesign Work
Explore how organizations can harness the power of artificial intelligence (AI) to drive productivity and operational excellence. -
People strategy
The impact of increased tariffs on workforce planning: strategies for adaptation
Today’s increased tariffs environment is reshaping the business landscape, from workforce planning, operational strategy to workforce dynamics.