HR Pros See AI Revolutionizing Workplaces, But Adoption Lags As Worries Persist

HR professionals acknowledge the vast potential of AI in their field, but challenges like data security and ethics are still causing many teams to be unsure of the path forward.

Many human resource (HR) professionals believe that artificial intelligence (AI) will benefit various areas of their job, but the path forward on how to best integrate new tools remains unclear in 2024.

A recent survey conducted by AON, involving nearly 400 HR professionals, reveals areas in the workplace that professionals think would benefit the most from the addition of AI.

According to the survey, AI would have the biggest impact on:

People Analytics — 51% of respondents
Talent Acquisition — 37% of respondents
Learning and Development — 35% of respondents
Performance Management — 17% of respondents
Talent Management — 16% of respondents
Employee Relations — 10% of respondents
Diversity, Equity and Inclusion — 9% of respondents

Though HR professionals believe AI can benefit these areas in the field, 51% of them said they are not ready to use AI capabilities within their HR organization.

AON reports that AI tools, especially predictive AI, have also become instrumental in managing health plan costs effectively. For example, Aon’s Health Risk Analyzer, which is powered by machine learning technology, has demonstrated capabilities in predicting future claims costs — leading to significant savings and improved health outcomes.

These advancements are reported to not only reduce healthcare costs but also improve the employee experiences. An AON case study of proactive engagement with high-risk health plan members resulted in anticipated claim savings of over $2,000 per individual managed.

Advancements in talent management programs also greatly impact HR professionals. According to the report, “An internal AI model can help predict employee retention or flight risks. Once identified, interventions can be recommended or even implemented by the AI model on behalf of a manager.”

However, the integration of AI in HR introduces new challenges, particularly concerning data security and the ethical use of AI. According to AON’s Global Risk Management Survey, AI has also moved up 32 spots, from 49 to 17, in the largest risks currently faced by companies.

The top five risks include:

Cyber Attack or Data Breach
Business Interruption
Economic Slowdown or Slow Recovery
Failure to Attract or Retain Top Talent
Regulatory or Legislative Changes

AON suggests addressing these issues by ensuring AI applications align with corporate values and implementing stringent governance frameworks to oversee AI usage.

The research demonstrates that AI can have a profound impact on HR teams and organizations, enriching employee experiences and streamlining operations. Designing a strategic approach that works best for your organization will better prepare teams for future workforce challenges as AI becomes more widely adopted across the workforce.