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Valoir Report shows HR is not ready for AI

Research finds HR leaders’ top concerns include lack of AI expertise and risk, compliance issues

AI-fueled automation may be inevitable, but human resources departments aren’t necessarily ready, finds a new global report by Valoir. The survey of more than 150 HR Executives finds tremendous AI opportunities but also a general lack of policies, practices and training to safely and effectively adopt AI for HR.

“AI is rapidly finding its way into HR, particularly for recruiting, talent, and workforce management. However, AI brings risks, including data compromises, hallucinations, bias, and toxicity,” said Rebecca Wettemann, CEO of Valoir. “HR departments that address these issues and mitigate risks can see significant benefits from AI.”

Potential for HR to Become More Productive and Strategic

The report finds 35% of HR employees’ workday is ripe for automation. Recruiting has the highest potential to leverage AI, and leads the pack in adoption within HR, with nearly 1 in 4 organizations using AI-supported recruiting. Talent and workforce management and training and development are also seen as prime areas for AI automation.

Generative AI is Accelerating Productivity Gains AND Risk

While more than ¾ of workers in HR roles had already experimented with some form of generative AI by mid-2023, only 16% of organizations have a policy on the use of generative AI. Even fewer have a policy on ethical use. HR leaders ranked lack of AI skills and expertise as the highest barrier to AI adoption, yet only 14% of organizations have a training policy for effective AI use. These policies are critical to ensure all employees can maximize AI benefits and minimize risks.

“Generative AI is being embraced, yet few organizations are putting the necessary policies, guidelines, and safeguards in place. As both stewards of employee data and curators of company policies, HR executives need to get ahead of AI policies and training, both for their own teams and the broader employee population,” said Wettemann.