AI at Work: How Pagaya is Redefining Human Resources in the Digital Era

Augmenting, Not Replacing: The Future of HR in the Age of AI

The rise of artificial intelligence has sent ripples across every industry, and nowhere is its impact more nuanced than in human resources. In the evolving landscape of high-tech companies, Israel-based Pagaya Technologies offers a compelling example of how AI can be a tool of empowerment rather than replacement. In an era dominated by automation, Pagaya is focused on enhancing human potential, not eliminating it.

At the core of Pagaya’s HR strategy is the belief that AI’s role is augmentation—a way to elevate human productivity and creativity. According to Itay Ezra, SVP and Global Head of People, AI tools now power functions once done manually, allowing HR professionals to concentrate on tasks that demand emotional intelligence and innovation. The shift is not just philosophical but also operational: Pagaya’s engineering team has experienced a significant boost in efficiency due to AI integration, while the HR team leverages intelligent platforms to streamline recruitment and employee engagement.

AI’s influence in Pagaya extends from automated candidate sourcing and resume parsing to sentiment analysis and personalized coaching tools for managers. Yet, despite this leap forward, Pagaya has made no workforce cuts in response to AI. Instead, they’ve realigned roles to better leverage both human and machine strengths.

Two major challenges remain: regulatory compliance and employee adoption. Pagaya operates in a tightly regulated FinTech environment, requiring every AI advancement to pass intense scrutiny. Meanwhile, bridging the gap between new technology and human adaptation remains a continuous effort.

Interestingly, Pagaya’s AI evolution is unfolding amid external pressures, including the challenges of war. The company has shown strong commitment to employee welfare during times of conflict—offering remote equipment, emotional support, and engaging family-oriented content. All while maintaining business continuity through structured planning and open communication.

Despite the turbulence of war and shifting global markets, Pagaya has achieved profitability and maintains a steady outlook for 2025–2026. Their people strategy, bolstered by AI but grounded in empathy and resilience, offers a roadmap for the future of work.

What Undercode Say:

Pagaya’s approach stands in stark contrast to the common fear narrative that AI will decimate human jobs. Instead, it reflects a mature vision for how organizations can build a future-ready workforce. AI is not about substitution, but optimization. This is a critical differentiation that too many companies ignore.

In HR, automation is often mistaken for depersonalization. Pagaya disproves that assumption. By embedding AI within processes like candidate screening and workforce sentiment analysis, they enhance personalization rather than diminish it. For example, the AI-driven interview tools and coaching platforms don’t replace human judgment but augment it with real-time insights and data precision.

Their use of agentic AI and custom GPTs shows forward-thinking tech integration. This isn’t about using off-the-shelf software but developing tailored AI models that align with the company’s internal values and workflows. It’s a sign that Pagaya isn’t chasing AI trends—they’re building AI infrastructure that fits into a strategic, long-term vision.

The challenges Pagaya identifies—compliance and adoption—are universal, but they approach them methodically. Their compliance-first mindset is especially vital in FinTech, where mishandled AI could result in reputational damage or legal complications. Their internal frameworks, which aim to balance innovation with regulation, set a standard for others operating in similarly sensitive industries.

The company’s wartime support strategy deserves equal applause. Pagaya recognized the emotional toll of conflict and addressed it not with generic corporate statements, but with real support mechanisms—care packages, virtual counseling, even activities for employees’ children. In times of distress, this human-first approach becomes a strategic asset, not just a moral one.

Finally, what sets Pagaya apart is the absence of layoffs despite AI adoption. That’s not just rare—it’s revolutionary. While others use AI as a cost-cutting excuse, Pagaya uses it as a capacity multiplier. By redistributing workloads and investing in training, they turn AI into an ally rather than a threat.

Their future trajectory seems poised for sustainable growth, especially as they’ve achieved profitability without workforce contraction. AI may be the fuel, but humans remain the engine.

🔍 Fact Checker Results

✅ No layoffs due to AI adoption—Confirmed by multiple statements from company leadership.
✅ Custom GPTs in use—Specifically mentioned by the HR head, indicating advanced AI maturity.
✅ War-related HR initiatives—Verified through detailed program descriptions and personalized support.

📊 Prediction

By 2026, Pagaya is likely to become a case study in AI-human synergy within HR frameworks. As more companies seek to balance automation with ethical practices, Pagaya’s dual focus on tech enablement and employee empowerment will set the benchmark. Expect further investment in AI-driven HR tools—perhaps even the deployment of predictive behavioral analytics—to anticipate employee burnout, flight risk, or training gaps before they manifest. If successful, Pagaya won’t just weather AI disruption—they’ll shape how the HR world adapts to it.