AI Transforms How Companies Develop Human Resources
Digital technology and artificial intelligence (AI) are transforming how companies develop human resources (HR). The cycle of employee competency enhancement now requires faster pace amid ongoing technological disruption across various industry sectors.
Hary Budiarto, Chair of the Best Human Capital Awards 2026 Jury, said companies are under significant pressure from global geopolitical conditions, rising energy costs, and rapid technological changes. He stated that firms unable to innovate would struggle to survive in competitive business environments.
“Companies must innovate to remain relevant, and the key to innovation lies in human resources capable of understanding technological advancements,” Hary said at the Best Human Capital Awards 2026 gala in Jakarta on Thursday, 22 May 2026.
He explained that human capital development is no longer solely focused on enhancing employee capabilities but also on how organisations can create efficiency through technologies such as AI, the Internet of Things (IoT), automation, and drones.
According to him, most companies are beginning to recognise the importance of digital technology-based HR transformation, particularly AI. However, implementation remains non-standardised, requiring more industry-wide knowledge sharing.
Hary noted AI’s rapid development is altering work patterns across sectors, making the process of upskilling HR significantly shorter than before.
“Previously, HR capacity development might occur every three years. Now, people must learn faster due to the rapid pace of digital technological advancements,” he said.
However, he stressed that AI remains a tool, with strategic decisions still in human hands. Therefore, human capital development in the digital age must prioritise ethics and human values.
“AI is a tool. Humans remain the primary decision-makers. Therefore, AI ethics and governance are crucial,” Hary said.
Meanwhile, Juanda Jafar, CEO of Business Asia Indonesia and Chair of the Best Human Capital Awards 2026 organisers, said HR transformation is now vital for companies to sustain business amid economic and technological changes.
He added that effective HR development is a long-term investment that boosts productivity and supports business sustainability.
The Best Human Capital Awards 2026, organised by Business Asia Indonesia at the Bidakara Hotel in Jakarta under the theme “HR Transformation for Accelerating Sustainable Business Growth”, honoured companies and institutions recognised for successfully building innovative and technology-driven HR development systems.