HRA recent study by Personio, Europe’s leading HR software company for small and mid-sized businesses, has shed light on the adoption of artificial intelligence (AI) in the workplace. The research, based on a survey of 500 HR decision-makers across the UK and Ireland, highlights the growing use of AI tools by HR professionals, driven by senior leadership’s desire to achieve cost savings. However, it also underscores the need for more education and training to address employee fears and unlock the full potential of AI.
AI adoption on the rise among HR professionals
In today’s cost-conscious business environment, senior business leaders are increasingly turning to AI tools to drive cost savings within their organizations. The study reveals that 81% of HR decision-makers report a strong appetite for AI adoption among senior leadership. While the impetus for AI integration primarily originates from the top, it is the younger workforce that is embracing AI at a faster rate. A notable 78% of HR professionals aged 25-34 are already using AI-powered tools in their roles, compared to 69% of those aged 55 and above, highlighting a clear generational trend in AI adoption.
Tangible cost benefits and efficiency gains
AI-powered technologies are offering businesses the opportunity to quantify substantial cost benefits. According to the study, 91% of HR managers using AI tools have either witnessed or expect to see cost savings within their departments. Beyond cost savings, AI adoption is also motivated by efficiency gains. Approximately 59% of respondents believe that AI will help them save time on HR processes. By automating administrative tasks such as onboarding, payroll, timesheets, benefits administration, and learning and development, HR teams can redirect their efforts towards more strategic tasks, such as talent acquisition, ultimately improving the organization’s bottom line.
Employee fears and the need for education
Despite the evident benefits of AI adoption in HR, there are notable challenges that need to be addressed. A key concern is the fear of job losses, with 51% of HR professionals citing this as a primary challenge in adopting AI. Encouragingly, 97% of HR decision-makers recognize the necessity of training to successfully implement generative AI in HR processes.
Pete Cooper, Director of People, Partners & Analytics at Personio, emphasizes the importance of education in AI adoption, stating, “When computers first arrived in workplaces, employees had to learn how to use Excel. Educating employees about AI is no different. The introduction of AI must go hand-in-hand with training and education, both for HR departments as well as employees. By arming the workforce with the skills they need to use AI responsibly and effectively, we can turn their fears around job loss into confidence and improve the overall employee experience.”
AI complements human capabilities
Tom Cheesewright, an Applied Futurist, adds his perspective, dispelling some common misconceptions about AI, saying, “I spend a lot of my time reassuring people that AI cannot do your job. A job is a complex collection of tasks. AI can do some of your work, it cannot do your whole job — or anyone’s. Instead, using AI, you can do a lot of things better and stop doing some of the tasks that you don’t enjoy. Let the robot do the work! The more technology we introduce and the more we use AI, the more we’re going to value people and the uniquely human qualities.”
The survey conducted by Personio reveals a growing embrace of AI within the HR profession, with senior leadership driving the adoption of AI tools to achieve cost savings and operational efficiencies. However, addressing employee concerns and providing the necessary education and training are crucial steps in ensuring that the potential benefits of AI are fully realized. As AI continues to evolve and play an increasingly prominent role in the workplace, it is clear that the successful integration of AI and human capabilities will be pivotal in achieving organizational success and innovation.
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