The discourse surrounding the AI revolution has reached a crescendo, fuelled by the UK Government’s AI action plan to revolutionise public services and catalyse economic growth.
Across industries, AI is being heralded as a game-changer, poised to redefine how organisations operate and compete in a fast-evolving global landscape.
Yet amidst this surge of innovation, there is one critical function lagging behind: Human Resources.
Research shows HR is a slow starter
A 2024 global McKinsey survey shows that, to date, HR has been one of the slowest functions to adopt AI – with only 12% of teams getting on board, compared to 34% of marketing and sales functions.
Another recent study, the Lattice 2024 State of People Strategy Report, suggests the problem may partially lie in HR’s struggles to progress from evaluating AI’s potential to actively using it. In the research, 38% of HR professionals admit they remain stuck at the point of informally discussing potential uses – unchanged from the previous year. This is not a tenable situation.
The HR profession already stands at a critical crossroads. Unless it starts to exercise its strategic muscle, it is in danger of becoming little more than a low-level administrative function.
A strategic role in a technology-driven world
Data from Accenture suggests that senior leaders recognise HR’s potential to be central to business success. They look to HR to bridge the gap between people, data and technology – understanding not only how these domains intersect, but how they can be leveraged to deliver measurable business impact.
In a 2023 Forbes article, Dr Tracy Brower states this is not just about the profession embracing technology within its own operations. HR must “understand how tech will change the nature of work, workers and workplace,” she says.
The current AI boom presents HR professionals with a once-in-a-generation opportunity to redefine their role within organisations.
By embracing AI as a strategic partner, HR will be able to drive and accelerate transformational culture integration. The profession will be better equipped to build purpose-driven, people-centred, high-performing cultures, which organisations desperately need to succeed in challenging times.
Transforming employee experience with AI
In numerous organisations, senior leaders already expect HR to leverage AI for streamlining processes, enhancing productivity, and driving operational efficiencies.
However, forward-thinking HR professionals understand that true value lies beyond these tactical applications. By harnessing AI’s capacity to analyse complex data, uncover meaningful trends, and measure employee sentiment, they can transform decision-making and elevate workforce management.
Delivering an optimum employee experience is one area where AI can make a real difference. It’s widely acknowledged that traditional pulse-type surveys, for example, fall short. They typically result in surface-level insights and leave employees disillusioned when little action is taken to address their concerns.
Next-level EX insights
AI allows organisations to take a much more dynamic approach, building employee experience dashboards that constantly monitor what people are thinking and feeling.
Data can be used to generate culture dashboards with alerts sent to HR or managers when a particular area is flashing ‘amber’. The alert is a cue to investigate what is happening underneath the surface.
Maybe the marketing team is facing mounting pressure with an impending product launch, and not enough people or resources to push it through. Or perhaps workplace conflict is rumbling in the IT team due to miscommunication or disagreements between colleagues around project direction.
AI can arm HR with a clear picture of what is happening across the business, at any given point in time. With this insight, HR can proactively intervene – perhaps offering a short-term staffing solution, or supporting line managers to facilitate dialogue between warring colleagues.
Real-world AI adoption success stories
IBM, Accenture and Salesforce are just a few of the organisations reported to be using AI in this way. By adopting this technology, they aim to build engagement, develop a positive working environment and reduce attrition.
Accenture, for example, uses its AI platform to track employee sentiment, streamline onboarding for new hires and suggest personalised skills development programmes for staff. Salesforce, meanwhile, uses its AI platform to analyse performance data and engagement levels. This insight helps to foster a collaborative culture by identifying opportunities for employees to connect, based on common goals or areas of expertise.
These companies demonstrate that AI is not merely a tool for efficiency, but a driver of meaningful cultural transformation.
CIPD calls for HR to take more proactive steps
The CIPD has recently reinforced the need for HR professionals to be proactive and take the lead in shaping how AI is implemented in their organisations.
Hayfa Mohdzaini, CIPD’s Senior Policy and Practice Adviser for Technology, says that HR should be developing clear guidance on the ethical and responsible use of AI at work, as well as ensuring data security and fair treatment of people.
Mohdzaini suggests HR also needs to work closely with union partners, who have understandable concerns about unconscious bias and possible exploitation of workers. Practitioners need to “foster a culture of cross-team collaboration, helping employees develop their skills or reskill as necessary to ensure no one gets left behind as AI transforms workplaces and careers,” she says.
A call to AI action
With organisations facing unprecedented levels of political, economic and environmental instability, HR cannot afford to sit on the sidelines of the AI revolution.
The profession has a critical role to play in helping businesses deliver stakeholder, social and shareholder value.
With technology as a co-pilot, HR truly has the potential to secure its position as one of the most strategically important functions in the business.
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