Dramatic Rise in AI Utilisation in HR Functions Across Organisations
In a startling leap forward, 2023 saw only 22% of HR functions experimenting with or utilising generative AI. However, a recent study by the Institute for Corporate Productivity (i4cp) reveals that this number has soared to an impressive 41% in just a year.
Kevin Oakes, CEO and co-founder of i4cp, discussed this evolution last week during the HR Tech conference in Las Vegas. He noted that HR departments are increasingly integrating AI into their operations and becoming significant influencers in strategic conversations about AI within organisations.
The 2023 i4cp study, "Is HR Already Behind in the AI Revolution," highlighted a critical issue: HR departments were often excluded from strategic AI discussions within their organisations. According to Oakes, this exclusion stemmed from the C-suite's lack of confidence in HR’s AI capabilities. He emphasised that since AI has a profound impact on the workforce, HR should naturally be at the forefront of these discussions.
"HR wasn't utilising AI significantly nor demonstrating robust knowledge around the technology," Oakes stated. "But that trend is shifting. While HR still has some way to go, CEOs must ensure that HR is involved in AI strategies."
The increased involvement of HR in AI-related strategic conversations has correlated with higher adoption rates of AI by employers. i4cp's forthcoming report, "Workforce Readiness in the Era of AI," surveyed 930 mid- and high-level executives, mostly from HR, across the globe. It found that 51% of employers now use generative AI in various capacities.
Current Utilisation of AI in HR Functions
i4cp's research indicates that six primary HR functions are currently leveraging AI technology: talent acquisition and mobility, talent development, total rewards, diversity, equity, and inclusion (DEI), people analytics, and employee experience.
Talent Acquisition and Mobility
HR's talent acquisition teams have been early adopters of generative AI. They've been utilising AI to develop job descriptions, synthesise data, and facilitate video or chatbot interviews. Some companies reported that AI-generated emails to passive candidates resulted in significantly higher response rates compared to those written by humans. This method not only attracted more candidates but also reduced time and effort for Talent Acquisition (TA) teams.
Talent Development
Talent development teams have mirrored talent acquisition in their AI use. They've adopted AI to personalise development plans and create learning and development (L&D) courses quickly. Oakes highlighted that such applications of AI have expedited the often time-consuming process of content creation.
Total Rewards
Although not traditionally linked with AI, total rewards teams are using AI for various tasks, such as analysing skills-based compensation and salary data in crucial markets. AI applications in this area also include automated responses to compensation queries and pay equity analyses.
Diversity, Equity, and Inclusion (DEI)
DEI efforts have benefitted from AI's ability to discern bias in job descriptions and employee pay, as well as assess the diverse impact of organisational changes. This technology also facilitates pay equity reviews, often in collaboration with total reward leaders.
People Analytics
AI is heavily entrenched in the realm of people analytics. HR teams use AI to perform both qualitative and quantitative data analysis, synthesize insights from open-ended responses, and assist with natural language processing efforts to identify bias in employee feedback.
Employee Experience
Leading companies like Walmart are employing chatbots to handle common HR queries or resolve workforce issues. These AI-driven chatbots function similarly to an HR service centre, additionally offering analytics from employee listening data to enhance the overall employee experience.
Despite these advancements, i4cp's report indicates that only 13% of HR functions are extensively using AI, with 28% using it to a moderate extent and 34% to a low extent. Kevin Oakes noted, "These aren't great statistics for HR, and they need to be higher. HR has to be more prepared for the conversation around generative AI."
In summary, the shift towards AI utilisation within HR functions is significant, and while progress has been made, there is room for further integration and strategic inclusion of HR in AI-related discussions.
Source: Noah Wire Services