
Image Credit: “What is Generative AI? -Pure IT-Calgary IT Support,” available at Yahoo Images (12/02/2024).
By Maggie Johnson
December 2, 2024
Generative artificial intelligence (AI) is empowering HR professionals by transforming the sector, enhancing efficiency, and introducing a more personalized approach to HR functions. A new study by Bain & Company highlights how generative AI can reduce HR labor time by 15-20% on average through automation and process improvements. This technology not only cuts costs but also empowers HR to take on a more strategic and impactful role within organizations.
Bain's research, supported by its Generative AI Workforce Impact Explorer tool, illustrates the substantial time savings across various HR functions. HR business partners can save up to 15% of their time by automating routine tasks. Talent acquisition teams can reduce their workload by 20%, while HR operations teams could save up to 35%. According to Bain, these efficiencies enable HR to transition from a transactional function to a more advisory and influential role, inspiring a strategic shift in HR roles.
John Hazan, partner at Bain & Company and global head of the firm’s Talent solution, emphasized that HR is at a critical juncture. The function must strike a balance between cost-effectiveness and becoming more strategic, a challenge made easier with generative AI. Hazan believes that AI has the potential to transform HR into a strategic powerhouse, instilling optimism and allowing professionals to focus on cultivating workplace culture and advising organizational leaders.
The report stresses that as generative AI handles repetitive tasks, HR teams can refocus their roles and develop new skill sets. For instance, HR specialists can emerge as innovation drivers, developing and implementing new AI-based tools. HR business partners can concentrate on cultural development and strategic guidance, using their newfound time to engage with employees and shape the company culture. HR operations teams can become data analysts, generating valuable insights from the data that AI processes.
According to Serge Eid, partner at Bain & Company’s Public Sector & Government and Strategy practice, this shift presents a significant opportunity for organizations in the Middle East. Eid notes that by embracing generative AI, HR professionals can prioritize building future-oriented skills, improving employee engagement, and driving cultural change.
AI is also streamlining HR tasks such as providing insights on trends, summarizing employee engagement data, and creating actionable workforce plans. It optimizes performance reviews through automated quality checks and enables HR operations to efficiently process data, generate reports, and identify trends from survey data. These advancements free HR teams to focus on delivering strategic value.
However, adopting AI in HR has its challenges, particularly in ensuring ethical use and preventing over-dependence on technology. Excessive dependence on AI could lead to the absence of that human touch in HR, potentially impacting employee morale and engagement. Nonetheless, Bain’s findings suggest that generative AI can help HR strike a balance between efficiency and personalization when implemented thoughtfully. By automating routine tasks, HR professionals can devote more time to what truly matters—engaging employees, shaping organizational culture, and driving long-term growth.
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