New report reveals low AI and automation maturity in HR
HR leaders have the opportunity to turn talent challenges into hiring and retention advantages using artificial intelligence and automation, according to a new report, in the wake of low levels of AI and automation maturity in HR.
Phenom's latest report offered organisations advice on how to utilise AI and automation in workplaces, describing them as practical tools that can improve how HR can hire, develop, and retain talent.
"Automation focuses on execution. It eliminates repetitive, manual tasks like screening, scheduling, or sending campaigns by following predefined rules and workflows," it said.
"AI, on the other hand, adds intelligence. It goes beyond automation by learning from data, understanding skills, predicting fit, matching candidates to roles, personalising experiences, and generating insights that support better decision."
AI, automation maturity in HR
But its findings revealed that 83% of organisations demonstrate low AI and automation maturity in HR.
According to the report, just one per cent of firms reach High Intelligence and five per cent hit High Automation levels.
Phenom's findings indicate that most organisations acknowledge that they need AI and automation to address pressures, such as skills shortages, high-volume hiring demands, competitive labour markets, and shifting employee expectations.
"What they don't know is what good looks like, what capabilities exist, or how they compare to their peers," the report read.
"Without a clear framework, it's difficult to assess where you are, identify where you should go, or justify the investment required to get there."
According to Phenom, there are five key opportunities where HR leaders can apply automation and AI. They include:
- Automating hiring workflows to cut time-to-hire
- Deploying automated interview scheduling to boost candidate conversion
- Leveraging AI matching to improve quality-of-hire
- Applying real-time intelligence to increase interview effectiveness
- Embracing an AI infrastructure for HR that can address unique industry and business needs
"The question every CHRO should be asking their team is: How fast can they get AI to work for their business?" said Mahe Bayireddi, CEO and Co-founder of Phenom, in a statement.
