In the last 1-2 decades, the first function has gradually been eroded as social media made finding folks very easy on linkedin, etc. Now only this second function stays in most companies.
Much if not all of that is now outsourced or automated, so having a department feels a bit of a relic.
At my current small company, the CTO is HR, in that he takes care of setting people up in those aforementioned systems. It's really not much work.
When was it useful?
The function of HR is set up to fail. There's a lot that it can do but the way companies structure it as of today it's not much more than a glorified assistant.
Seems like a good opportunity for disruption and competition.
Are you serious on this point? That unless you studied the right subjects in undergrad, you are not capable? Oof. Being that close-minded to people's abilities makes me question the validity of everything else you have said. You may have some valid underlying points - HR is definitely imperfect. But the opinions are running more strongly than facts on this post.
Most of the people that I see who are attracted to HR positions or are in current HR positions remind me very much of that high School click of kids that thought they were better than everyone else, but they didn't have any tangible merits or reasons for this self-belief, and for some reason everyone wanted to suck up to them. So HR seems to be this popularity contest people that are meant to resolve interpersonal disputes that arise from work but those disputes don't get solved on any kind of merit. Those disputes get solved in one of three ways usually; by the popularity of the persons involved, the dei initiatives that the company needs to adhere to or, the person who cried first. There's nothing about merit or an unbiased investigation or attempting to truly resolve things. HR seems to want to put together yoga and wellness classes and other nonsense because they literally lack any other job function in the company now because it is all outsourced.
There are of course exceptions but those exceptions are becoming quite exceptional nowadays. I am not a fan of AI but with as bad as most HR is at any company I've worked at replacing it with AI I would literally notice no difference.