Two-thirds of business leaders say they need deeper understanding of HR function

Business leaders identify HR as ripe for disruption by AI

New data reveals business leaders recognise the potential of AI and automation in terms of  revolutionising HR – however, businesses will only thrive if they keep HR’s human touch.

HR software company Personio surveyed 500 C-suite level executives and 1000 HR decision makers at SMEs in the UK and Ireland. The data reveals 74% of business leaders reporting there is a need for their business to become more efficient and productive and 66% believe AI and automation have potential to deliver this within the HR department.

Key findings include;

In light of recent technological advances with generative AI, like Chat GPT, 61% believe HR will be taken over by AI in the future. However, these statements about the future of HR may be a symptom of a misunderstanding of the value that HR teams deliver to organisations. The survey uncovered a clear knowledge gap, with 67% of business leaders admitting they’d like to have a better understanding about what their HR team does.

Ross Seychell, Chief People Officer at Personio, said: “Emerging technologies such as generative AI tools, like Chat GPT, have the potential to revolutionise workplaces, and the HR department is no exception. But will HR be ‘replaced’ one day by AI? I certainly don’t believe so, and the business leaders that say it is possible are short sighted and worryingly misinformed about the role that effective HR plays in businesses. Instead we can expect to see AI make HR more important, by allowing a hard-pressed department to focus more on business critical issues like building a great culture or solving retention challenges, while new technology will make admin tasks more efficient.”