Time to Call Your Agent: Agentic AI Enters HRO Tech Space

Let’s start here: Raise your hand if you knew what the term “agentic AI” meant just a few years ago.

Anyone? Anyone?

We don’t blame you—the sheer speed of artificial intelligence-related innovation and advancement is staggering.

Agentic AI is all about automating workflows through autonomous, nonhuman-driven processes that are designed to minimize the need for human intervention, but not replace core decision-making. All this while vastly improving productivity. Agentic AI doesn’t just answer questions; it can actually act, plan and execute tasks.

And, without a doubt, the advancements are moving at an unprecedented pace.

Key characteristics of Agentic AI

How does agentic AI help?

It offers several productivity advancements including:

• Autonomy: Ability for a solution or system to perform tasks without constant human input.
• Goal-Oriented Behavior: The solution or system works toward meeting defined objectives.
• Adaptability: The solution or system responds to changing conditions and interacts with other systems.

How is this different from generative AI?

• Generative AI is predictive and assistive—helps humans make decisions and answer questions.
• Agentic AI is proactive and action-oriented; it also helps humans make decisions but also helps execute tasks.

Some Perspective

The original analog phone was patented in 1876, but the first mobile phone wasn’t patented until 1973. The first smartphone, although it was nothing like today’s technology, was announced in 1993. Keep in mind, it would take many years after their introductions before these technologies evolved into viable, mass-produced consumer products.

Now consider this … When we talked to Daniel Avrutsky from investment banking firm Jeffries’ at PrismHR LIVE 2023 (i.e., less than three years ago at this writing), we discussed an emerging trend called “generative AI,” which can be found in just about every industry these days.

“Generative AI has gone from zero to 100, and I learned about generative AI for the first time probably eight months ago,” Avrutsky said back in 2023. “A person whom I know, who is a very advanced technologist, said, ‘Have you heard about this OpenAI thing?’ and I said, ‘A-what a-what a-what?’ … He said, ‘No one knows about it yet, but three weeks from now it will be on CNN.’ And he was absolutely right. Three weeks from that point, it was on CNN.”

This just shows how fast generative AI took off … but that pales in comparison to agentic AI, which seems to have even faster rocket boosters attached, if that’s possible. While agentic AI has been around for several years, as Amazon Web Services explains, enterprise-level agentic AI emerged in early 2025. That long ago, huh?

The future is now! Download PrismHR’s AI white paper today to learn how artificial intelligence is transforming HR for HROs and SMBs alike.

Unlike traditional AI, which primarily assists humans by providing insights or recommendations, agentic AI can act autonomously within defined parameters to achieve specific goals. In other words, it doesn’t replace humans. 

AI has already transformed many aspects of business from predictive analytics to customer service automation, and agentic AI can be found in many industries—from travel (e.g., making and modifying bookings) to banking (e.g., autonomous interactions) to health care (e.g., through a patient portal, which could alert a nurse that a patient has had a serious symptom develop after a procedure) and more. 

So let’s find out how agentic AI is poised to disrupt the HRO and HCM spaces. 

Agentic AI and HR and the Workforce of Tomorrow

Let’s face it: HR efficiency has changed significantly through the years thanks to advanced technology, but the advancements we are beginning to see now in the areas of generative AI and agentic AI will disrupt HR in unprecedented ways, including in the areas of:

• Recruitment & Talent Acquisition: Agentic AI could automate candidate screening and interview scheduling while proactively sourcing talent based on organizational needs.
• Onboarding: Agentic AI could create personalized onboarding journeys. It could also handle document collection and compliance checks automatically.
• Employee Engagement: Agentic AI could monitor engagement metrics and initiate interventions when needed.
• Performance Management: Agentic AI could provide continuous feedback loops. It could also identify skill gaps and recommend training programs.
• Compliance: Agentic AI could track compliance requirements in real time and send alerts and recommend corrective actions.

Doing It Right the First Time

HR teams often juggle repetitive, rule-based tasks like scheduling interviews, managing compliance and processing employee data. These tasks are essential but time-consuming, leaving less room for strategic initiatives like improving employee engagement or shaping company culture, which are keys to elevating retention and recruitment of high-quality job candidates.

As agentic AI becomes more sophisticated, HR departments will see deeper integration with enterprise systems, predictive workforce planning and even AI-driven employee development programs. HR professionals will shift from administrative roles to strategic advisers, supported by intelligent automation.

It’s an exciting time for sure, but PrismHR is taking a measured approach to agentic AI and AI in general for a reason. Simply put: In a field ripe with regulatorily roadblocks and concerns about data privacy, a methodical approach to AI is not just prudent—it’s an absolute necessity to help you and your clients stay in compliance.

As Kevin Andrews, PrismHR’s president and chief technology officer said, “We view AI as a powerful tool that accelerates growth for our customers and their clients. By integrating AI into payroll, benefits and HR processes, we enable service providers to deliver faster insights, reduce administrative tasks and enhance the employee experience. With AI, our customers can spend less time managing complex tasks and more time creating value for the businesses and people they support.”

In other words, HR outsourcers, it’s about time you called your agent!

Learn more about AI in the HRO tech space by downloading our new white paper.

James Tehrani is PrismHR’s content marketing manager. He is an award-winning writer and editor based in the Chicago area.