AI agents use Natural Language Processing (NLP) and Large Language Models (LLMs) to automate workflows, identify goals, and execute complex tasks. For Human Resources (HR) departments at small and medium-sized businesses (SMBs), adopting agentic AI boosts efficiency and helps them enhance employee experience.
At TSL Tech Research, we wanted to understand AI-adoption trends for small and medium-sized businesses (SMBs), so we asked Human Resources (HR) Directors at almost 150 firms with between 500 and 5,000 employees how they expect AI agents to be used in their industry over the next two or three years.
We found that HR Directors at SMBs predict that AI agents will be used for recruitment and screening, answering employee questions, and workforce development.
When we asked 147 HR Directors at SMBs how they thought their industry would be using AI agents, such as virtual assistants and autonomous bots, over the next two to three years, the results were as follows:
Key Takeaways:
HR departments at SMBs are planning to use AI agents to automate processes related to finding new employees and serving the current workforce. HR Directors identified recruitment, employee service, and employee development as the top 3 use cases for AI agents.
Almost all the HR leaders surveyed predict AI agents will be used in the next few years. This finding is good news for IT service firms that offer services related to AI adoption and agentic AI.
According to our online research, the top HR use case for AI agents that SMBs are planning for the next few years is recruiting and vetting employees, coming in at 69%. Answering employee HR or benefits questions came in a close second at 66%.
Learning and development recommendations was the third most popular planned use case, with slightly less than 50% of SMBs choosing this option. Onboarding new employees wasn’t far out of the top three at 46%.
HR Directors at SMBs predict that AI agents will be used to automate workflows that handle hiring practices and employee relations. While employee sentiment monitoring and performance were lower ranking use cases, they are still part of workforce relations.
Understanding and tracking trends in IT adoption helps managed service providers (MSPs) develop marketing strategies for reaching and engaging target audiences. Based on our survey results, IT service firms that work with SMBs should promote their expertise in agentic AI.
IT service providers can take advantage of trends toward agentic AI adoption by running campaigns that market their ability to uncover opportunities in HR departments for running AI agents, as well as services for developing and implementing AI agents.
Our research findings show that HR departments at SMBs have plans for adopting AI agents to automate many key functions. MSPs play an important role in helping companies progress in their AI journey. By understanding agentic AI trends, IT service providers can craft messages that attract and engage SMBs by addressing their needs and business goals.
TSL Tech research is dedicated to tracking IT trends with our online surveys. We can help your company run one of our surveys or design your own.
Find out more about what TSL Tech Research can do for your IT service firm or B2B tech company.