HR Systems Survey Highlights AI's Growing Role and Strategic Challenges in HR

What's Happening?

The 28th Annual HR Systems Survey by Sapient Insights Group reveals significant shifts in the adoption of artificial intelligence (AI) within human resources (HR) functions. The survey, which included nearly 5,000 organizations representing 30 million workers, indicates that AI adoption in HR has increased to 31%, up from 23% the previous year. This rise in AI usage is accompanied by a 39% increase in HR tech spending. Despite these advancements, only 51% of HR professionals believe their function is perceived as strategic, a slight decrease from last year. The survey also highlights that while 59% of CEOs view HR as strategic, there is a notable gap in perception among other organizational leaders. Additionally, the survey found that many HR professionals are using personal AI tools for work, with a significant portion not funded by their companies.

Why It's Important?

The findings underscore the transformative impact of AI on HR functions, pushing organizations to rethink their strategies and roles. The increased adoption of AI tools in HR can lead to more efficient processes and better decision-making. However, the perception gap regarding HR's strategic value poses a challenge for HR leaders seeking to elevate their role within organizations. The survey suggests that HR departments need to better communicate their strategic contributions, particularly to finance teams and boards of directors, to enhance their influence. The use of personal AI tools by HR professionals also raises concerns about data security and the need for organizations to provide adequate resources for AI integration.

What's Next?

HR leaders are encouraged to strengthen partnerships with IT departments to maximize the benefits of AI implementations. As AI continues to reshape HR functions, organizations may need to invest in training and development to ensure that HR professionals are equipped to leverage AI effectively. Additionally, there is a call for HR departments to improve their data storytelling capabilities to demonstrate their strategic value to key stakeholders. The survey suggests that focusing on executive-level reporting and aligning with organizational goals can help HR functions gain a more strategic foothold.

Beyond the Headlines

The survey highlights a potential ethical concern regarding the use of personal AI tools by HR professionals. This practice could lead to data privacy issues and underscores the need for clear policies and guidelines on AI usage within organizations. Furthermore, the findings suggest a cultural shift in how HR is perceived, with a growing recognition of its strategic importance in navigating AI-driven changes. This shift may require HR leaders to adopt new skills and approaches to maintain their relevance and influence in the evolving business landscape.