March 13, 2020
March 13, 2020
Contributor: Mary Baker
AI increasingly proves its worth in transforming HR function’s efficiency and performance.
Seventeen percent of organizations use AI-based solutions in their HR function and another 30% will do so 2022, according to the Gartner 2019 Artificial Intelligence Survey. HR leaders cite cost savings, more accurate data-based decision making and improved employee experience as the top reasons to deploy AI.
Two-thirds of early AI adopters have one to three active AI projects, with plans to double the number of projects by the end of 2022. Many use cases already show proven results, with improvements reported as significant by:
“The levels of improvement being reported by early-adopter organizations are remarkable, especially given that most use cases in HR are currently supported by ‘narrow’ AI solutions,” said Seyda Berger-Böcker, Director Analyst, Gartner.
AI-based solutions can drive faster, easy-to-use HR services and help HR functions develop new personalization strategies to engage the technology-enabled workforce and improve employee performance. Organizations that embrace a more personalized and consumer-centric approach to employee experience increase the average employee’s performance by 17%.
Every HR process is an opportunity for AI. However, most organizations are focusing their AI efforts in three areas: HR operations (40% of organizations), talent acquisition (38% and employee engagement monitoring (38%).
As AI continues to improve within the HR space, investments will increase. The Gartner survey found that 47% of HR leaders will increase their investments and 51% will maintain their investments.
More than one-third of the HR leaders Gartner surveyed report the same three key challenges when deploying AI:
Of the surveyed organizations that report successful AI implementation, 41% highlight a close collaboration between IT and HR as one of the top three reasons for their success. Use these trusted relationships to evaluate the technology capabilities of potential vendors and possible implementation difficulties and complexities, and to prioritize AI use cases based on feasibility.
Having data of sufficient volume and quality is critical for successful AI implementations (and cited as key by 35% of survey respondents). Quality data is the foundational component of AI-based solutions and a prerequisite for ensuring the accuracy of AI algorithms.
A well-articulated strategy is also key to success (cited by 32%), and does three important things:
Ultimately, successful AI implementation requires a shared ambition and vision for what this technology means to HR and the organization.
AI solutions are evolving and becoming better every day, and companies are continuing to explore possible AI deployments across a large swatch of HR activities, including workforce planning (52% of organizations), learning and development (51% of organizations), skills management (48% of organizations), and performance management (44% of organizations).
Join your peer CHROs and senior HR executives from leading organizations to discuss specific HR challenges and learn top HR trends and priorities.
Recommended resources for Gartner clients*:
Survey Analysis: Artificial Intelligence Is on the Rise for HR
*Note that some documents may not be available to all Gartner clients.