AI and HR: High optimism, low adoption reported among decision makers

New research reveals 'considerable gap in adoption and hesitation' on AI

AI and HR: High optimism, low adoption reported among decision makers

Optimism on artificial intelligence is strong among HR professionals, but a significant number of them are saying it's unlikely that the technology would be implemented in their organisation this year.

These are the findings of Deel's latest research, which polled 1,100 HR decision makers.

It found that 61% of the respondents believe that AI will deliver benefits on HR practices over the next five years, with those under 35 years old being the most optimistic about the technology (83%).

On the other hand, only 38% of those aged 55 and older share this sentiment, according to the report. In fact, more than a quarter (26%) of them believe it will have a negative impact.

HR decision makers from larger businesses are also significantly more optimistic on AI (85%) than those from smaller companies (47%). Among the benefits expected by HR decision makers on AI include:

  • HR Analytics (46%)
  • Checking employment laws (37%)
  • Employee learning and development (35%)
  • Payroll management (34%)
  • Accessing hiring data/insights (33%)
  • Performance management (32%)
  • Benefits administration (32%)
  • Recruitment and talent acquisition (29%)
  • Employee onboarding (28%)
  • Salary benchmarking (28%)

Low adoption of AI

Despite strong optimism on AI, the report found that only 38% of HR decision markers currently use the technology in their practices and workflow.

For those not using AI, 23% said they plan to adopt it within the next year, while 70% said it is unlikely that the tech would get implemented in the next 12 months.

Aaron Goldsmid, Head of Product, Payments & Integration at Deel, said their findings indicate a "considerable gap in adoption and hesitation, especially among smaller businesses."

The top concerns on AI include its reliability and accuracy (16%), as well as data security and privacy (16%). Another 13% said they were concerned of the potential loss of personal touch in HR processes due to AI.

It comes as employee recognition and rewards (21%), as well as employee dismissal (13%), were ranked the lowest when it comes HR processes where AI could help the most.

But Goldsmid said reluctance to adopt AI won't just mean missing out on the technology, but also on "gaining a competitive advantage in efficiency and strategic insight."

"For many companies HR is highly manual, and AI can help alleviate some of this admin burden, allowing HR leaders to focus more on strategy, creativity and people-focused work," he said.

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