Report sees “practical execution and scaling” of AI gaining ground.
It wasn’t surprising to learn that a full two-thirds of HR organizations use some kind of AI in their work. That could be a good thing since HR workloads were expected to rise by 10% this year, according to AI consultant the Hackett Group, while budgets and headcount modestly decline. All in all, the company’s research sees a 12% productivity gap in HR, which AI-driven automation will be “critical” to addressing.
That makes generative AI “a strategic imperative” for HR, said Jessica Haley, leader of the firm’s Global HR Executive Advisory Practice. “Our research shows that by embracing AI, HR can transform service delivery and unlock significant competitive advantages.”
Leading the Hackett Group’s list of recommendations is prioritizing what needs to get done. “HR has more on its plate than it can handle,” the report said. “It is imperative to prioritize improvement opportunities ruthlessly based on importance, value, time to benefit and opportunity cost.” Also high on the list: practical execution and scaling generative AI projects to encourage broad adoption.
Subtle Shifts
That’s a subtle but notable shift: During 2025, the Hackett Group expects more HR teams will expand their use of AI beyond toes-in-the-water and pilot projects. Its talk of prioritization illustrates how the discussion on AI is moving beyond testing or the conceptual to actual business use.
In addition to addressing productivity concerns, generative AI will help organizations gain the bandwidth to focus on their top objectives. More than three-quarters, 77%, are working to improve the efficiency and effectiveness of HR services. About 76% of employers expect their use of automation to increase by an average of about 4.2%. Some 70% see themselves bulking up their use of self-service.
All of this illustrates the impact of AI and automation on HR. Self-service, in particular, is a logical place to apply AI,
especially as younger workers increase their role in the workforce.
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News & Notes
Your efficiency in talent acquisition doesn’t really matter to most job seekers. Nearly two-thirds of U.S. candidates, 62%, say they’d avoid employers who use too much generative AI in their recruiting, according to research by Express Employment Professionals and the Harris Poll. While they see the reasoning behind using AI for drafting resumes or creating mock interview questions, 87% believe AI cannot effectively vet candidates for soft skills, meaning meeting with a human during interviews is important. Nearly as many, 84%, would rather have a person conduct their initial interview to answer simple questions. All in all, the report said, 73% say the the benefits of using generative AI during the hiring process are not worth the risks.
Economic uncertainty is raising talk of layoffs, with 1 in 8 companies, 41%, saying they’ll replace employees with some kind of AI during 2025, said AI Resume Builder. Nearly a third of companies using AI to replace staff expect to cut more than 25% of their workforce. The functions most likely to see AI-related job losses include customer service (75%), administrative support (55%), marketing and content creation (54%), logistics and supply chain (48%), and finance/accounting (43%). At the same time, some 30% of businesses are accelerating their AI investment.
Intuit will acquire GoCo, which provides HR and benefits solutions for small and mid-market businesses. The company said GoCo's AI tools complement Intuit’s data set, AI capabilities and human expertise. Its features will be integrated into Intuit Enterprise Suite and QuickBooks Payroll. The acquisition is “a significant step forward” in the company’s strategy to serve SMBs with a connected platform that helps customers run their business, Intuit said.
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