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Technology

What’s driving some orgs to adopt AI in HR, while others hesitate?

July 1, 2024

Technology

What’s driving some orgs to adopt AI in HR, while others hesitate?

July 1, 2024

Photo by Igor Omilaev on Unsplash

There has been plenty of tech announcement news over the past week or so, including the general availability release of Deel AI from global HR company Deel.

Alongside this launch, Deel issued new research highlighting AI’s impact on the human resource practice. The study of more than 1,100 HR decision-makers in the U.S., U.K. and Australia revealed differences in AI strategy between small and large businesses alongside other demographic insights on the adoption of artificial intelligence at work.

Several key findings:

  • Companies with more than 500 employees have adopted AI in HR at a much higher rate than those with smaller workforces.
  • Thirty-eight percent of all HR decision-makers surveyed reported that they currently use AI, and 23% of non-users plan to adopt it within the next year.
  • Seventy percent of non-AI users are unlikely to implement it within 12 months, highlighting a gap in understanding and acceptance.
  • HR decision-makers are most concerned about losing the “human” aspect of HR processes through AI implementation.
  • Respondents believe HR analytics will be the most beneficial AI use case across the function.
  • HR decision-makers under 35 are the most optimistic about AI, with 83% believing it will have a positive impact on HR in the next five years.

Aaron Goldsmid, head of product, payments & integration at Deel, says we are facing a “pivotal” moment in the evolution of HR tech. However, his organization’s research seems to indicate a correlation between hesitation and adoption, especially among smaller businesses.

Reluctance to adopt AI is not just about the use of technology, says Goldsmid, it also indicates that many businesses are missing out on a competitive advantage in efficiency and strategic insight.

“For many companies, HR is highly manual, and AI can help alleviate some of this admin burden, allowing HR leaders to focus more on strategy, creativity and people-focused work.”

Here are more updates from the world of HR technology:

HR tech in action

Banking app Chime has acquired Salt Labs, a tech company that provides a unique rewards and loyalty program for hourly workers. Salt Labs’ team and products, led by Jason Lee, will join Chime. This acquisition also gives Chime access to Salt Labs’ clients. The deal’s terms were not disclosed.

Read full article here

Reluctance to adopt AI is not just about the use of technology, it indicates that many businesses are missing out on a competitive advantage
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