'If hiring costs continue to rise, people will be replaced by AI'

The labor reform officially went into effect the week of July 26, 2025, following the law's approval by President Gustavo Petro. With this, companies must begin preparing for the regulatory and fiscal changes that the new rules of the game will entail, especially due to increased payroll costs.

In a conversation with Portafolio, Jaime Arrieta, CEO of Buk, stated that there is an additional factor to consider here: the growth of artificial intelligence and its growing appeal in the labor market, not only due to its versatility when applied, but also because of its cost-effectiveness for organizations in times of rising payroll costs.

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How to prepare for labor reform? We've already experienced many of the aspects of labor reform in Chile. We've already seen about 75% of the issues that were approved, and it's clear to us that they have different impacts. They obviously seek greater job protection with employees in mind, which is great, but they also have an impact that we must be fully aware of.

These are economic growth and formal employment, the latter being something that stands out in Colombia, since unfortunately, informal employment is above 50%, which is quite high, and unemployment is at 10%, which is by no means a negligible figure and must be closely monitored.

Are there risks to be aware of? These laws must be adopted with great care, because they will have a significant economic impact, especially on the formalization of employment and, above all, on SMEs, which will be the sector that will have the hardest time adapting to these changes. Then come consequences not seen in other countries: subsidies and certain compensatory measures that end up generating distortions.

Ultimately, all of this affects the dynamism and liquidity of employment, which is a fundamental issue we should not lose sight of. It's all well and good to protect employment, of course, but we must also safeguard institutions, as long as it doesn't affect formality, job quality, and, of course, economic growth. That's why it's key to be very clear about the lines we shouldn't cross.

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Can we tolerate change? Colombia is growing at between 2% and 3% of GDP, and we used to be happy when we grew at 5%. We need to get back to that. We're in Latin America, with a lot of potential to develop, and we can't settle for growing at the pace of a developed country when we're still catching up. Generally, these types of high-impact laws tend to be implemented gradually. Changes tend to be gradual. We have, for example, the case of the 40-hour workweek, which wasn't reduced overnight but is being progressively adjusted each year.

Therefore, it's key to seek extensive advice on legal matters and everything related to technology, especially human resources software. This is where we play an important role, and we must quickly make all the necessary adjustments to ensure the regulations are implemented on our platforms, because their impact is felt the moment they come into effect.

What risks do they perceive? This is an issue that must be managed with great precision, especially now with the emergence of artificial intelligence. If hiring costs continue to rise, many companies may opt to replace staff with technology or AI. Therefore, it's essential to keep this risk on your radar.

Companies must anticipate and consider these changes within their budgets, rethink their workflows, identify which processes can be adjusted, and anticipate how these impacts will change their operations. In this scenario, the role of labor lawyers and specialized human resources software, such as Buk, becomes key.

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Are companies preparing? We've been actively generating knowledge and holding webinars, information breakfasts, and training sessions to keep everyone up to date. I'd like to take this opportunity to invite companies and HR leaders to participate in these discussions.

One of the things I value most about the HR ecosystem is its sense of community, as many leaders share information, discuss in WhatsApp groups, and support each other. It's invaluable that they continue to do so and that they also make their voices heard in the media.

Will AI become a major player? The change is dramatic, and artificial intelligence (AI) is often talked about as something of the future, but in the human resources field, that future has already arrived. In fact, we are seeing a very clear before and after, with concrete transformations in daily operations. AI is already playing a fundamental role, especially in the most repetitive and operational tasks. A dramatic example is personnel selection, where a recruitment analyst may be in charge of processes with large data sources, which they review with this tool and optimize time, without sacrificing quality.

Artificial intelligence is automating administrative and repetitive tasks, allowing HR to take on a much more strategic role. Instead of being mired in operations, teams can focus on improving the employee experience, designing more effective policies, and adding real value to the business.

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Is personnel management becoming dehumanized? It's a topic of much discussion, and we're seeing it closely. In companies that are more advanced in the use of artificial intelligence, what we're seeing is that the human role is becoming even more relevant. I see it as the opposite of what many think, and that's because there's a complete complementarity between what AI does and human supervision. AI, today, can't make decisions on its own with the required quality; it needs to be guided, monitored, and oriented. Therefore, I don't see it as a replacement for human talent at all. Quite the contrary, technology allows us to do more with the same resources, and that enhances the role of the human team. This is especially evident in areas like human resources, where the balance between automation and human judgment is fundamental.