Is HR ready for generative AI? New data says there’s a lot of work to do

In 2023, generative AI emerged as the technology that IT departments are under pressure to leverage, with C-suite executives being the top influencers pushing for rapid implementation. However, a significant number of IT organizations struggle to meet the surging demand for AI-related projects, citing challenges such as unreasonable expectations from business stakeholders, integration difficulties, and data silos hindering AI deployment plans.

This trend extends across all business sizes, with small businesses also investing in AI solutions. Research indicates that integrating AI with existing systems poses a challenge for 90% of IT leaders. Beyond IT, businesses are urged to develop new policies on employee use of generative AI, placing HR professionals at the forefront of defining these guidelines.

A study by Valoir involving over 150 HR executives globally highlighted that the prime AI opportunities for HR lie in recruiting, learning and development, and talent management, although these areas also pose significant risks. Currently, recruiting stands as the most adopted AI application in HR, with a substantial percentage of organizations planning adoption in the near future. Concerns such as lack of AI expertise, compliance issues, and resource constraints emerge as key barriers to AI adoption within HR.

Risks associated with AI in HR include trust issues, potential biases in AI recommendations, data security breaches, biased models, and impact on core HR functions. While AI adoption for HR purposes is escalating, only a fraction of organizations have established policies for generative AI use, ethical AI utilization, and employee training in the face of AI automation.

Valoir emphasizes the importance of selecting trustworthy vendors and technologies in tandem with implementing robust policies, procedures, safeguards, and training programs within HR teams and across the workforce. As businesses transition from AI research to adoption in 2024, HR’s pivotal role as a data steward and policy enforcer becomes paramount in maximizing the benefits of AI technology while upholding trust within the organization.