AI as a catalyst for change
The adoption of AI in HR has generated concrete impacts. According to PwC AI Jobs Barometer 2025 study:
- Productivity is 4.8 times higher in sectors that adopt AI
Result of the automation of repetitive tasks and the integration of intelligent solutions. This frees up employees for strategic activities and improves the quality of services, reducing errors and speeding up operations.
- Salaries offered by companies that adopt Artificial Intelligence in Human Resources for technology professionals are 56% above the market average.
This recognition attracts specialists, drives innovation and ensures competitive advantage, consolidating sustainable growth and technological leadership.
- Revenue growth per employee is three times higher in sectors that adopt AI, highlighting the profound impact of these technologies on financial performance.
This increase goes beyond operational efficiency, reflecting the ability to innovate, personalize offerings, and respond quickly to the market. Thus, AI drives not only productivity, but also the growth and success of organizations in the digital environment.
New Profiles and Core Competencies
This evolution imposes, in practice, a need for strategic repositioning of top leaders. It is imperative to ensure that teams master advanced digital skills, data analysis and critical thinking. Mastery of technological tools and the ability to transform large volumes of information into actionable insights are now indispensable to support informed decisions, optimize talent management, anticipate engagement trends, and proactively respond to organizational needs.
Leadership should also promote the development of skills such as complex problem solving, adaptability, and excellence in interpersonal communication. In a context of accelerated digital transformation, it is essential to foster a culture of continuous learning and innovation, encouraging collaboration between multidisciplinary teams. The success of modern HR lies in aligning the technology strategy with a differentiating human vision.
Thus, new profiles of high strategic value stand out, such as the People Data Analyst and the Employee Experience Designer, which reflect the evolution of Human Resources in the age of AI. For leadership, it is essential to recognize that the ability to interpret data and design differentiating experiences for employees is what allows organizations to create sustainable competitive advantage. The People Data Analyst takes a key role in transforming data into strategy, while the Employee Experience Designer contributes to innovative, motivating work environments aligned with business objectives.
Despite technological advancement, the human factor remains central. AI frees up time for creativity, leadership, and authentic relationships. The success of modern HR depends on the balance between technological innovation and a differentiating human vision.
AI does not replace people, but it frees up time for them to focus on what really adds value: strategy, creativity, and human relationships. It's a silent transformation that's already happening... and those who do not adapt will be left behind.
The European Artificial Intelligence Regulation (AI Act)
The European AI Act, Regulation (EU) 2024/1689, approved in 2024, consolidates itself as a global reference in the regulation of artificial intelligence, establishing robust ethical, technical, and legal standards to ensure transparency, security, and respect for fundamental rights. This regulation is especially relevant for companies operating in different countries, as it harmonizes guidelines and creates an environment of trust in the use of AI. In the field of Human Resources, the AI Act imposes strict obligations on processes such as recruitment, performance evaluation, and employee management, requiring that automated decisions be not only explainable and justifiable, but also auditable, preventing discrimination, promoting inclusion, and ensuring equal opportunities.
In addition, the AI Act significantly strengthens the protection of personal data, making practices such as anonymization, informed consent, and risk assessments mandatory, in full alignment with the GDPR. For companies that use Managed Services and AI in HR, it is essential to invest in constant audits, training of the professionals involved, review of processes, and implementation of governance structures dedicated to AI, ensuring continuous compliance and mitigating risks. Thus, the AI Act guides organizations towards an ethical and responsible adoption of AI, promoting social benefits, stimulating employee trust, and consolidating the reputation and safety of companies in the increasingly regulated and competitive digital environment.
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How do Managed Services fit into the picture?
Managed Services are expertly managed services that take on critical processes, from recruitment to retirement.
This model guarantees:
- Continuous technology and innovation
- Compliance
- Scalability and automation
Managed Services go beyond traditional outsourcing by offering a strategic partnership. Specialists take over essential Human Resources processes and contribute to innovation, strategies and continuous improvements, while the company focuses on activities that generate value.
More than two-thirds of top-performing companies use Managed Services to gain a strategic advantage or bridge critical capacity gaps.
Managed Services and the Co-Sourcing Model
The co-sourcing model emerges as a balanced solution between total outsourcing and internal management of Human Resources, giving strategic relevance to the internal team. Unlike traditional outsourcing or Managed Services, co-sourcing promotes active collaboration between the external partner and the organization's professionals, who maintain direct control and influence over critical processes. Thus, the internal team continues to play a key role in decision-making, setting priorities and managing the organisational culture, while the co-sourcing partner brings expertise, technology and innovation capacity.
This hybrid approach allows you to maximize the value of internal skills, promoting employee development and ensuring that know-how remains within the company. At the same time, it benefits from the expertise and best practices of the external partner, resulting in a more efficient, flexible operation that is aligned with the organization's strategic objectives. Co-sourcing represents, therefore, a true partnership, where the internal team is valued and enhanced, ensuring agility and competitiveness without losing identity or control.
AI + Managed Services: Ecosystem of Competitive Advantage
AI and Managed Services together create an ecosystem that unites intelligent automation, global vision, and operational efficiency. The result? Critical processes transformed into competitive advantage.
This impact can already be seen in market-leading organizations, which use these solutions to achieve superior levels of performance and innovation. A concrete example of this transformation can be illustrated through the following practical case:
Case in the Technology sector
PwC took over the global management of a client's payroll in more than 50 countries, integrating SAP ECP and artificial intelligence into a fully digitized ecosystem.
This highly complex project involved the coordination of multidisciplinary teams, the harmonization of processes and the adaptation to different legal and tax requirements in each jurisdiction. The integration of SAP Employee Central Payroll has made it possible to centralize and automate payroll management, while the adoption of AI-based solutions has optimized the detection of inconsistencies, predictive data analysis, and the response to employee requests in real time. The results were impressive:
44% reduction in average processing time
The integration of solutions based on artificial intelligence and advanced automation has made it possible to significantly speed up payroll processing cycles, almost halving the time required to complete these operations. This efficiency gain has translated into greater team productivity, fewer payment delays and greater responsiveness to employee needs, even in multinational and highly regulated environments.
Improvement of 23 points in the satisfaction index
The employee experience was substantially valued, reflected in a significant increase in the satisfaction index. The digitalization of processes and easyaccess to real-time information and answers have contributed to a more transparent, efficient, and motivating work environment. Employee satisfaction has increased thanks to reduced errors, greater predictability in payments, and more agile support from HR teams.
Reduction of system failures (optimization of 66% of existing failures in payroll
The implementation of intelligent tools made it possible to quickly identify and correct discrepancies and failures in payroll processing systems. With the optimization of two thirds of the failures recorded previously, greater reliability and security in salary management was ensured, reducing the risk of non-conformities and increasing confidence in internal processes. This advance was fundamental to mitigate operational risks and strengthen the organization's reputation with employees and regulatory authorities.
This case clearly demonstrates how the integration of AI with Managed Services can transform complex processes into value levers, bringing gains in efficiency, employee satisfaction and operational robustness, showing that investing in these solutions is essential for organizations that intend to lead in the global digital context.
The future is now
It is essential to analyze current actions and identify measures that must be implemented urgently. It is noteworthy that 67% of high-performing companies already adopt Managed Services to drive digital transformation. In addition, 91% of CEO plan significant changes in the operating model, considering artificial intelligence as a central factor in this process. (Source: PwC Global CEO Survey, 2025).
According to the publication PwC HR tech and AI agents: 5 actions CHROs should take now, more than half of operational work in HR may already be agent-assisted or agent-driven, and can exceed 60% in day-to-day functional processes. In parallel, estudos da PwC (em parceria com o WEF) point out that GenAI could affect up to 40% of working hours, accelerating the transition to AI-powered processes with the human leading decisions, exceptions, and governance.
The transition to AI and Managed Services requires planning, but the steps are clear:
1. Evaluate current processes and identify areas with the greatest potential for automation.
2. Define strategic objectives: efficiency, compliance and employee experience.
3. Choose the right partner, with technology, global expertise and innovation capacity.
4. Implement in a phased manner, starting with critical processes such as payroll.
And finally, we would like to ask you... What are you waiting for?
Ana Roque
Workforce Manager
PwC Portugal
Ana Roque is a Workforce Manager at PwC Portugal. At PwC since 2014, he has participated in numerous Human Resources Management consulting projects across various geographies and sectors. Since 2024, he has served as a driver for the EMEA HR Managed Services team.
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Bachelor's and Master's degree in Psychology from the Lusófona University of Lisbon
Pedro Cordeiro
Finance, Human Resources & Tax Compliance Managed Services Director
PwC Portugal
Pedro Cordeiro is the Finance, Human Resources & Tax Compliance Managed Services Director at PwC Portugal. At PwC since 2023, he has over 15 years of experience in payroll and global projects, focused on systems integration, employment tax, and time & attendance. He leads payroll teams and promotes continuous improvements that enhance accuracy and operational efficiency.
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