The Hackett Group, Inc., a leading consultancy in generative AI strategy and executive advisory, has released its 2025 Key Issues Study. The report highlights a significant surge in generative AI adoption across human resources departments, with 66% of HR organizations already utilizing AI-powered tools. As HR teams face rising workloads and decreasing budgets, Gen AI is emerging as a strategic enabler to drive efficiency and close an anticipated 12% productivity gap.
Subtopics & Pointers:
1. Rising Workload and Shrinking Resources in HR:
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HR workloads are expected to increase by 10% in 2025.
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Simultaneously, HR budgets are projected to decline by 1.5%, and headcounts by 2%.
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This results in a 12% productivity gap, underscoring the urgency for technology-driven solutions.
2. Gen AI as a Strategic Imperative:
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Gen AI is no longer optional; it is becoming essential to achieving HR’s transformation goals.
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According to Jessica Haley, Principal at The Hackett Group, embracing AI is key to reimagining HR functions and achieving business impact.
3. Current and Planned Use of Gen AI in HR (2025 Outlook):
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Talent Acquisition:
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52% use AI to write job descriptions.
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39% plan to adopt it for resume screening.
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Employee Communications:
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48% use AI for drafting internal communications.
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HR Service Delivery:
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45% plan to use AI to respond to common HR questions.
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Learning and Development:
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29% intend to use AI for skills documentation and training assessments.
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4. HR’s Mandate: Boost Productivity Through AI:
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77% of HR organizations have initiatives to use technology for improving service efficiency and effectiveness.
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A 4.2% increase in automation is anticipated across HR functions.
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Gen AI is expected to relieve manual workloads and allow HR to focus on strategic initiatives.
5. Recommendations from The Hackett Group:
To successfully scale Gen AI and realize its full potential, The Hackett Group recommends that HR leaders:
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Prioritize projects based on business value, urgency, and ROI.
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Invest in reskilling HR professionals to improve AI and data literacy.
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Streamline processes and systems to reduce barriers to adoption.
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Redesign talent strategies with AI capabilities at the core of future workforce planning.
The Hackett Group’s 2025 findings confirm a pivotal shift in how HR organizations approach productivity, resource allocation, and strategic value. With Gen AI emerging as a cornerstone technology, HR departments are increasingly positioned to transform their operations, drive efficiencies, and unlock new levels of workforce performance in the year ahead.
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