AI Takes Centre Stage In Transforming HR Across The UAE And GCC

Artificial intelligence is rapidly becoming the backbone of human capital transformation across the UAE and wider GCC, with organisations shifting from simple HR digitisation to intelligent, insights‐driven workforce management.

According to Tayfun Topkoc, Head of International Operations and Drive Strategic Growth at PeopleStrong, the region has entered a decisive phase where AI tools are no longer experimental add‐ons but core enablers of competitiveness.

“AI in HR is moving from simple digitisation to enterprise transformation,” Topkoc explains, highlighting that HR is increasingly being seen as a lever directly tied to productivity, compliance, and business resilience. With labour costs representing a significant share of operational expenditure, companies are turning to AI to speed execution, improve workforce planning and sharpen decision‐making.

Topkoc points to a global surge in adoption, noting that Gartner data shows HR leaders planning or deploying GenAI rising from 19 per cent in mid‐2023 to 61 per cent by early 2025. This global momentum is magnified in the GCC by national digital agendas and localisation frameworks such as Emiratisation and Saudisation. These mandates require companies to maintain real‐time visibility of skills, talent pipelines and compliance‐ready workforce data - making AI essential rather than optional.

PeopleStrong recently launched its AI Co‐Recruiter and Employee Relations Agent in the UAE, tools designed to reduce screening time, accelerate hiring and resolve routine employee queries at scale.“The response we are getting from the market is phenomenal,” Topkoc says, noting that organisations increasingly want solutions that act not just as automation tools but as“a decision‐and‐execution layer linking talent to enterprise priorities.”

Real‐world impact

Topkoc stresses that the real value of AI emerges when it becomes embedded in daily workflows.“Organisations see real business impact when AI acts as a workforce acceleration layer,” he says. This acceleration appears in faster onboarding, improved service reliability, and reduced reliance on manual follow‐ups.

Skills intelligence - one of the emerging frontiers of HR transformation - enables real‐time mapping of talent strengths, early identification of capability gaps, and more fluid internal mobility. This supports agility in industries where rapid shifts in priorities are common.

Which sectors are leading?

In the UAE and GCC, adoption is strongest in sectors with large, distributed, and operationally intensive workforces: retail, hospitality, logistics, healthcare and diversified conglomerates. High‐volume hiring, dynamic shift scheduling, high attrition and frontline productivity pressures make these industries prime beneficiaries of intelligent HR automation.

Topkoc adds that banking, financial services, and insurance (BFSI) and government entities are also accelerating adoption, driven by governance, compliance needs and national competitiveness priorities.“The strongest pull is coming from banking and financial services, retail, healthcare, manufacturing, and IT/ITeS,” he notes.

Boards now see workforce tech as strategic

Leadership teams are no longer viewing HR tools as back‐office systems.“Boards increasingly see workforce technology as a strategic need because it directly impacts profitability, resilience and reputation,” Topkoc says. Executives now demand transparency, governance, and predictive human capital dashboards that track skills readiness, retention and engagement just as rigorously as financial KPIs.

Opportunities and challenges

One of the biggest opportunities lies in moving from discrete AI experiments to fully integrated, multi‐agent AI ecosystems. PeopleStrong's MAAX (Multi‐Agent Architecture Driven Experience) framework exemplifies this shift. According to Topkoc, the company's AI Co‐Recruiter can reduce screening time by up to 80 per cent and shorten time‐to‐offer by 40 per cent, while its ER Agent can potentially resolve 80 per cent of routine queries and cut HR ticket volumes by 70 per cent.

However, clean data and robust integration remain key challenges. Change management - ensuring adoption sticks across all levels - is equally critical.

Looking ahead, Topkoc expects AI‐enabled workforce platforms to shape the competitiveness of GCC organisations for years to come.“AI will help organisations run with reliability at pace,” he says, by accelerating decisions while keeping human judgment in the loop. With HR AI budgets set to increase tenfold by 2026, and six in 10 workers requiring upskilling before 2027, organisations that balance innovation with trust and governance will define the region's next era of growth.

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