As AI continues to reshape industries and transform how we work, it’s no surprise that the HR industry is also shifting towards AI-powered solutions.
According to Gartner, 38% of HR leaders have explored or implemented AI in their organizations to improve efficiency and streamline processes.
But AI’s potential in HR goes beyond operations. It can enhance employee experiences and strategic decision-making.
This blog post explores critical AI in HR statistics. Learn how AI transforms managing people in organizations.
AI in HR Statistics
1. 38% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization.
(Gartner)
The global AI industry was worth $200 billion as of 2023 and is expected to rise to $1.8 trillion by 2030.
This shows that the AI industry is ever-green. More companies, including HR, are adopting AI in their activities.
By exploring or implementing AI solutions, these leaders aim to streamline and enhance their HR operations, ultimately making them more efficient. This suggests a growing trend towards adopting AI technology within the HR domain.
2. 76% of HR leaders say that if their firm does not adopt and apply AI solutions, such as generative AI, in the next 12 to 24 months, they will fall behind those that do.
(Gartner)
As HR leaders implement AI technologies in their operations, more HR leaders also see the importance of doing so.
These HR leaders see that they will lag behind competitors if they don’t adopt the AI trend and improve their operations.
Generative AI is becoming increasingly crucial for HR departments to stay competitive and relevant in the business landscape.
3. According to a Gartner poll, 34% of HR directors are looking into potential use cases and prospects for generative AI (a subset of broader AI).
(Gartner)
Generative AI is a specialized branch of AI that enables machines to generate novel content, such as text, images, or even music.
There is a growing interest among HR leaders in harnessing the power of AI, particularly generative AI, to address their organizational needs and challenges. This can lead to innovative solutions and improved efficiency.
4. 65% of HR leaders recognize AI as a catalyst for increased efficiency and productivity.
(PR Newswire)
Over the years, AI has proven its benefits in several areas, including HR. AI streamlines operations and saves time.
HR leaders can automate repetitive tasks and improve their efficiency.
By acknowledging the potential of AI technology to automate and optimize various HR processes, these leaders get increased output and better resource allocation.
This widespread recognition of AI’s transformative potential underscores its rising importance in shaping the future of HR practices.
5. The global AI adoption rate is at an encouraging 21% as more businesses grasp the benefits of AI for workforce management.
(PR Newswire)
More businesses are recognizing the value and potential of AI in streamlining their HR processes, improving efficiency, and enhancing overall workforce management.
This is positive for the HR industry, as AI continues demonstrating its capabilities in optimizing various aspects of workforce management.
For example, AI streamlines talent acquisition, employee engagement, and performance evaluation tasks.
6. 45% of global HRM leaders embrace AI to drive HR transformations.
(PR Newswire)
The adoption of AI in HRM is driven by the desire to leverage technology to streamline HR processes, improve decision-making, and enhance the overall employee experience.
AI can be used for various HR functions, such as talent acquisition, performance management, employee engagement, and workforce analytics.
For example, AI can analyze large amounts of data on job applicants to identify the best candidates for a position. It can also monitor employee performance and identify areas for improvement.
Most firms use AI to automate administrative tasks, such as scheduling interviews or processing payroll, freeing HR professionals to focus on more strategic tasks.
7. According to the AI in HR survey, many respondents voiced primary concerns about data privacy, with a significant 50% recognizing it as a critical issue.
(PR Newswire)
With the increasing use of AI in HR processes, organizations are collecting and processing vast amounts of data on their employees.
This data includes personal information such as names, addresses, social security numbers, performance data, and biometric information.
The data is often highly sensitive and must be protected to ensure employee privacy and comply with data protection regulations such as GDPR.
However, organizations must prioritize data privacy when implementing AI in HR processes and ensure appropriate measures are in place to protect employee data.
8. 42% of HR leaders predicted that automation would eliminate jobs, while 32% expected AI to create additional jobs.
(PR Newswire)
The popular perception is that some jobs may be obsolete as AI takes over specific tasks and processes.
However, some also believe that AI can create more job opportunities while jobs may be eliminated. These new jobs support AI systems’ implementation, maintenance, and oversight.
While it is true that AI can automate specific tasks and processes, the increased efficiency and productivity enabled by AI could lead to economic growth and job creation in other areas.
Hence, organizations should carefully consider the potential impact of AI on employment and develop strategies for mitigating any adverse effects while maximizing the benefits.
9. 72% of businesses expect some roles in talent acquisition and human capital management to be totally automated within the next ten years.
(Forbes)
Many HR tasks, such as resume screening, candidate sourcing, and employee onboarding, can be automated using AI tools.
However, while automation is beneficial, organizations should retain human input in crucial decision-making processes, such as hiring and performance management.
10. 56% of organizations employing AI in HR are attempting to automate repetitive jobs.
(Gartner)
One of AI’s primary benefits is its ability to automate routine, time-consuming tasks, freeing HR professionals to focus on more strategic tasks.
Repetitive tasks in HR can include data entry, resume screening, interview scheduling, and payroll processing.
Organizations can improve efficiency, reduce errors, and save time and money by automating these tasks.
11. 63% of HR directors want to use generative AI to improve productivity and employee experience (52%), among other goals.
(Gartner)
Organizations can streamline HR processes using generative AI to improve productivity and employee experience.
They can also reduce manual workloads and provide employees with more engaging and personalized experiences.
12. 92% of HR executives polled intend to increase their use of AI in at least one area of HR.
(Eightfold AI)
13. Regarding using technology for commercial purposes, 77% of HR leaders are concerned about accuracy and verbosity.
(Gartner)
It’s crucial to ensure that their technology provides correct information and data. In other words, they need technology that doesn’t make mistakes.
Also, ensure that the technology communicates clearly. It might be hard to understand if technology uses too many words or technical language.
14. HR managers who do not fully automate report losing an average of 14 hours per week manually completing tasks that could be automated. Also, 28% waste 20 hours or more, and 11% spend 30 or more.
(Career Builder)
HR managers who don’t use technology to automate tasks spend much time doing these tasks manually.
15. 56 percent of typical “hire-to-retire” tasks could be automated using current technologies and minor process changes.
(McKinsey)
Over half of the tasks involved in hiring employees and managing their time at a company until they leave (known as “hire-to-retire” tasks) could be done automatically with current technology.
This doesn’t require significant changes or entirely new technologies – even minor changes to current technology and processes could lead to this level of automation.
16. 72% of employers anticipate talent acquisition roles being automated by 2027.
(Career Builder)
However, the extent to which these roles will be automated may depend on the specific tasks involved, the industry, and the adoption of new technologies.
As such, HR professionals need to stay up-to-date with emerging trends and technologies to ensure they remain competitive and effective in their roles.
17. Only 37% of employers who have adopted automation use it to assist with candidate archiving, and only 21% use it to promote continuous candidate engagement.
(Career Builder)
Despite widespread automation adoption, few employers utilize it for specific tasks that could significantly enhance hiring efficiency and engagement.
18. Employers who have automated parts of their talent acquisition and management processes report that it has saved them time and increased efficiency (93%), as well as money and resources (67%).
(Career Builder)
Automating specific tasks allows HR professionals to streamline their work, potentially reducing the time spent on manual, repetitive processes.
Automation has saved these employers money and resources.
19. HR departments are currently using AI technology for the following five functions: employee records management (78%), payroll processing and benefits administration (77%), recruitment and hiring (73%), performance management (72%), and onboarding (69%).
(AIHR)
20. 66% of surveyed business leaders believe that AI and automation can improve efficiency and productivity in the HR department.
(Personio)
Many decision-makers value leveraging technology to streamline various HR tasks and processes.
By doing so, organizations can potentially reduce the time and effort spent on manual tasks, allowing HR professionals to focus on more strategic and high-impact initiatives.
Business leaders have a positive outlook on incorporating AI and automation into their HR practices.
21. In the next five years, three-fifths (60%) of business leaders plan to incorporate more AI and automation into their HR departments.
(Personio)
Most business leaders acknowledge the potential value that AI can bring to HR functions and are willing to invest in these technologies soon.
The five-year timeframe indicates that incorporating AI and automation is not just a distant goal but a strategic priority for many organizations.
22. Two-fifths (43%) of surveyed HR managers are concerned that they will lose their jobs as more HR functions become automated.
(Personio)
Although automation can bring numerous benefits to organizations, there is also a valid concern about its implications for HR professionals.
As more routine tasks become automated, some HR managers worry that their skills and expertise will become less valuable or obsolete.
However, AI cannot completely replace human abilities.
Human judgment, emotional intelligence, and strategic thinking are crucial to effective HR management. Technology cannot entirely replace these qualities.
Yes, technology is fundamental to enhance efficiency. However, it is unlikely to eliminate the need for human expertise in managing talent and workforce issues.
23. Gartner predicts that by 2024, 69% of the routine work currently performed by managers will be fully automated.
(Gartner)
Automation is likely to impact managerial roles across various industries profoundly.
As more routine tasks are automated, managers may focus on strategic decision-making, problem-solving, and interpersonal skills.
These skills require human judgment and expertise.
24. People believe that AI will save recruiters time (44%), provide valuable insights during the recruitment process (41%), and make their jobs easier (39%).
(Tidio)
25. However, most people are concerned that incorporating AI into the recruitment process will result in the loss of unique and unconventional talents (35%) and the destruction of the HR industry (26%).
(Tidio)
26. Approximately 85% of recruiters believe AI is a valuable technology that will replace some aspects of the hiring process.
(Tidio)
27. 68% of recruiters believe that using AI in the recruiting process will eliminate unintentional bias.
(Tidio)
When designed and implemented correctly, AI systems can objectively analyze candidate data without being influenced by personal beliefs, stereotypes, or other biases that may impact human recruiters.
As a result, AI-powered tools could help level the playing field and ensure hiring decisions are based on merit and qualifications rather than subjective factors.
However, while AI has the potential to reduce bias, it is not immune to bias itself.
AI systems are only as unbiased as the data they are trained on, and if that data contains inherent biases, the AI may perpetuate those biases in its decision-making.
28. Approximately 79% of recruiters think artificial intelligence will soon be advanced enough to make hiring and firing decisions.
(Tidio)
Also, 56% of applicants do not want AI to decide about hiring and firing employees. However, only about 22% of recruiters responded similarly.
FAQs
How many companies are using AI in HR?
Only 12% of hiring professionals use artificial intelligence in their recruitment or talent management processes.
What is the impact of AI-driven analytics in HR for 2024?
In 2024, AI-driven HR analytics are revolutionizing how companies manage their workforce. From smarter hiring decisions to personalized employee experiences, AI streamlines HR processes and improves decision-making.
It’s helping HR teams predict future workforce trends, automate administrative tasks, and ensure compliance with regulations.
What are the threats of AI to HR?
Some of AI’s threats to HR are privacy concerns, job displacement, and possible biases.
Sources:
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