HR Leaders Embrace AI with Confidence

In a recent report, the Global CHRO AI Indicator Report, it was revealed that the fear of AI taking over jobs in the field of Human Resources (HR) is largely unfounded. The report, which delves into AI trends, adoption rates, sentiment, and challenges faced by HR professionals, indicates that a mere 5% of HR leaders express concerns about their jobs becoming obsolete due to AI. This finding challenges the widespread discourse that AI poses a significant threat to human workers.

AI: A solution, not a threat

Contrary to the anxieties surrounding AI, many HR leaders view it as a valuable tool to enhance their roles rather than replace them. Approximately 40% of HR leaders believe that AI can empower their teams to deliver more strategic value. This percentage jumps to 54% for those identified as “AI Pioneers.” Notably, 35% of HR leaders anticipate immediate benefits from AI in the form of support for performance management tasks. Additionally, nearly 3 in 10 respondents (29%) expect AI to contribute to increased revenue and profits.

Daniel Pell, Vice President and Country Manager, UKI, Workday, emphasized the positive impact of AI on HR professionals. Pell explained how AI can streamline manual processes, freeing up valuable time for HR teams to focus on tasks that require human expertise. For instance, Workday AI users can create job descriptions in minutes rather than hours, enabling hiring managers and recruiters to allocate more time to search for top-quality candidates.

Measured concerns

While HR leaders are generally optimistic about AI, they do express some reservations. The report reveals that 47% of HR leaders are concerned about the trustworthiness of AI, marking it as the top concern among various functions surveyed. Specifically, HR professionals see risks in AI implementation related to potential errors (21%) and security and privacy concerns (20%).

Putting people first with AI

Beyond its role in enhancing efficiency, HR leaders recognize AI’s potential to create a more equitable and diverse workforce. A significant 36% believe that AI can enable a fairer and more diverse work environment. This belief is even stronger among AI Pioneers, with 52% sharing this view. Additionally, 38% of HR leaders foresee AI making their organizations more meritocratic, although this figure rises to 47% among AI Pioneers.

Upskilling for AI integration

As AI continues to integrate with HR, there is a growing demand for employees to acquire more technical skills. Currently, HR leaders prioritize skills related to creative thinking, problem-solving, risk management, and the ability to work with new technologies. Moreover, skills in data literacy and data-driven decision-making are also gaining prominence. However, the report highlights that 32% of HR leaders believe their teams lack the necessary technical skills to work effectively with AI.

Addressing this skills gap is crucial. HR leaders can empower their teams through AI-specific training, accessible learning materials, and intuitive tech platforms designed for non-technical employees. As AI becomes an integral part of HR operations, the need to ensure that teams are confident in using this technology becomes paramount.

A human-centric approach to AI

Daniel Pell underscores the importance of maintaining transparency, compliance, and risk management when implementing AI tools. HR, as governance gatekeepers, plays a vital role in this process. By providing the right training and collaborating with trustworthy partners, HR can ensure a human-in-the-loop approach, keeping human decision-making at the forefront.

AI interest across the organization

The increasing interest in AI extends beyond HR to all areas of an organization. HR professionals must stay ahead by facilitating training, testing, and fostering buy-in and partnerships to shape organization-wide AI adoption. When HR integrates tools that automate repetitive tasks and prioritize human-exclusive strategic value, the entire company stands to benefit.

The Global CHRO AI Indicator Report paints a positive picture of AI adoption in HR. While concerns about AI’s trustworthiness persist, HR leaders largely embrace AI as a solution to enhance their roles and create a more equitable and diverse workforce. Upskilling HR teams and maintaining a human-centric approach are essential steps in harnessing the power of AI for the benefit of both HR professionals and the organizations they serve.