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How AI is reshaping the workplace: restructuring, redundancies, and how HR should respond

Artificial intelligence (AI) is no longer a future concept or a niche efficiency tool. It is already reshaping how organisations operate, how work is performed, and how roles are structured. For many employers, AI adoption is driving changes to workflows, team design and skills requirements. In some cases, this results in reduced hours, redesigned roles or redeployment. In others, it leads to restructuring and redundancies.

At the same time, AI is creating new opportunities, increasing productivity and enabling employees to focus on higher-value work. The overall impact depends largely on how organisations manage the transition. For HR leaders, the challenge is not simply adopting new technology, but ensuring workforce change is handled lawfully, transparently and with empathy.

The scale of the change – what the data tells us

The scale and pace of AI-driven change is significant. The World Economic Forum estimates that approximately 92 million jobs could be displaced globally by 2030, while many new roles are created alongside them. This highlights a fundamental reshaping of work rather than a simple reduction in employment.

Research from PwC shows that sectors with high AI adoption are experiencing almost five times greater labour productivity growth compared to those with low AI usage. PwC also found that roles requiring AI-related skills can attract wage premiums of up to 25%, reinforcing the growing divide between roles that are augmented by technology and those that are replaced by it.

According to the OECD, around 28% of jobs across member countries are at high risk of automation, demonstrating that the impact of AI is not limited to manufacturing or manual roles, but extends across administrative, professional and knowledge-based work.

Enterprise adoption is accelerating rapidly. Studies from organisations such as McKinsey indicate that the majority of executives expect to increase AI investment significantly over the next two to three years. This suggests that workforce restructuring driven by AI is not a short-term trend, but an ongoing reality that employers must plan for.

Importantly, disruption is no longer confined to traditionally “at-risk” roles. White-collar occupations – including accounting, payroll and administrative roles – are now among those seeing the fastest change, as AI systems increasingly perform routine cognitive tasks with speed and accuracy.

Which roles are changing fastest and why

AI does not impact jobs evenly. It affects tasks, and roles that are heavily reliant on routine, repeatable and rules-based activities are most exposed.

In finance functions, for example, accounting, bookkeeping and payroll roles are changing rapidly. Automated reconciliation, expense management systems and AI-driven reporting tools significantly reduce the time required for transactional work. While this does not eliminate the need for finance expertise, it often reduces the volume of work available at junior or processing levels.

Junior finance analysts and transactional finance roles are also being reshaped. Data gathering, basic modelling and standardised reporting can now be automated or supported by AI tools, changing the skills profile required and reducing demand for entry-level roles focused solely on analysis preparation.

Customer service and contact centre roles are another area of significant change. Chatbots and voice-based AI now handle large volumes of first-line enquiries, leaving human employees to manage more complex or sensitive interactions. While these roles remain essential, staffing models are shifting as call volumes and response patterns change.

How AI-driven change leads to reduced hours, role changes or redundancies

AI adoption often leads first to task automation, where systems take over repetitive activities. When this happens, individual workloads can decrease, resulting in reduced hours, role consolidation or redistribution of responsibilities.

In other cases, task shifting occurs. Roles are redesigned to focus more on judgement, problem-solving, relationship management and oversight, while AI handles execution and analysis. This frequently requires reskilling and can result in job redesign rather than job loss.

However, where automation significantly reduces the need for certain functions, or where redeployment and retraining are not viable, restructuring and redundancies may follow. This is most common in roles with a high proportion of routine tasks and limited opportunity for redeployment within the organisation.

For HR: A fair and transparent process for managing AI-driven change

1. Start with a clear business case and impact assessment

Any AI-driven change should begin with a clearly articulated business case. Employers must be able to explain why technology is being introduced, what it aims to achieve, and how it aligns with organisational strategy. This should include an assessment of which processes and tasks will be affected, how roles may change, and where reductions in workload or headcount may occur. Analysing work at a task level rather than focusing only on job titles allows for more proportionate and defensible decision-making.

2. Engage early and consult meaningfully

Early consultation is critical when roles, hours or employment may be affected. Employees should be informed at the point where change is being considered, not once decisions are final. Meaningful consultation builds trust, reduces anxiety and allows employers to consider alternatives that may reduce the need for redundancies. Where employee representatives or trade unions are in place, engagement should begin as early as possible.

3. Apply fair and objective selection and redeployment processes

Where restructuring leads to potential redundancies, selection criteria must be objective, transparent and directly linked to business needs. Employers should clearly document how decisions are made and apply criteria consistently. Redeployment should always be explored first, with employees given access to suitable alternative roles, reasonable time to consider options and appropriate support.

4. Invest in retraining and upskilling

AI often changes roles rather than removing them entirely. Investing in retraining and upskilling enables organisations to retain talent while adapting to new ways of working. Targeted learning in areas such as data literacy, system oversight and higher-value advisory skills can support redeployment and help future-proof the workforce.

5. Manage reductions in hours or redundancies with care

Where reductions in hours or redundancies are unavoidable, these must be handled lawfully and with empathy. Contractual changes require consultation and agreement, and redundancy processes must meet statutory and contractual obligations. Providing outplacement support, career coaching and access to wellbeing resources can significantly reduce the personal impact on affected employees.

6. Communicate clearly and consistently

Clear, honest communication is essential throughout the process. Employees should understand why changes are happening, how decisions are being made and what support is available. Regular updates, opportunities to ask questions and clear appeal routes help ensure the process is perceived as fair and transparent.

7. Monitor outcomes and ensure ongoing compliance

Following implementation, organisations should review outcomes to ensure objectives have been met without unintended consequences. This includes monitoring redeployment success, training uptake, equality impacts and the use of AI tools in workforce decision-making. Ongoing review demonstrates responsible leadership and helps organisations adjust where necessary.

AI is transforming work fast and restructuring is becoming an increasingly common response. While the technology itself can drive efficiency and growth, the way workforce change is managed will define an organisation’s culture, reputation and long-term success.

HR has a critical role to play in ensuring that AI-driven change is fair, transparent and legally compliant, while supporting employees through uncertainty. With the right planning, consultation and people-focused approach, organisations can embrace innovation without losing trust and build a workforce ready for the future.

If your organisation is navigating AI-driven change and would value expert HR support, Consult HR is here to help. Get in touch to discuss how we can support you through every stage of the process.