Generative AI is revolutionizing the HR profession by increasing efficiency and enabling strategic transformation. A new study by Bain & Company highlights how AI can reduce costs and add a more human touch to HR operations, saving 15-20% of HR labor time on average through automation and augmentation.
1. Key Findings of the Bain Study
- Generative AI can save significant time across HR functions:
- HR Business Partners: Up to 15% time saved.
- Talent Acquisition Teams: Up to 20% time saved.
- HR Operations Teams: Up to 35% time saved.
- Typical companies can achieve an average of 20% labor cost reduction.
2. Benefits of Generative AI in HR
- Streamlining transactional processes enables HR to focus on strategic initiatives.
- Shifts HR’s role from transactional operators to strategic advisers.
- Reinvents team structures and enhances skills across HR functions.
3. Enhanced Role Functions with AI
- Talent Acquisition Teams:
- Drafting job postings and filtering CVs.
- Scheduling interviews and answering simple queries.
- Real-time interview analysis and bias identification.
- HR Business Partners:
- Summarizing employee engagement and creating action plans.
- Skills-based workforce planning and quality checking reviews.
- Retrieving HR trends and conducting workforce analysis.
- HR Data Analysts:
- Quality checking, analyzing, and updating HR data.
- Generating actionable insights from survey data.
- Developing dashboards and responding to data requests.
4. Expert Insights
- John Hazan, Bain & Company: Generative AI elevates HR from cost-center to strategic hub, unlocking both efficiency and innovation.
- Susan Gunn, Bain & Company: AI adoption is a strategic leap that redefines HR’s value proposition.
Generative AI is a transformative force in HR, streamlining operations, enhancing strategic contributions, and saving costs. By adopting AI, HR departments can unlock innovation, improve workforce planning, and redefine their role as strategic business partners.
