There’s Still Time to Revolutionize HR with AI

It’s been two years since generative artificial intelligence (GenAI) burst onto the scene and became a part of everyday conversation, as well as a strategic imperative for organizations and HR functions. Despite the potential of GenAI—or AI in general—to transform HR, however, the level of understanding and implementation among industry leaders remains relatively low. It might seem impossible to start scaling the mountain that is AI if you’re not already well versed in the technology, but the truth is that it’s never too late to begin.

AI Understanding and Overall Adoption Remains Low

Although AI comprehension and experience increased slightly between January 2024 and August 2024, according to SHRM research, the majority of HR leaders still lack extensive knowledge of this transformative technology. In fact, more than one-third (38%) admitted to having limited or no theoretical understanding of AI, and 58% reported possessing only a basic grasp of its fundamentals. This lack of understanding means that the time needed to learn and experiment with AI technology isn’t happening.

At the organizational level, the adoption of AI in HR has seen marginal growth over the last year. More than 1 in 4 HR leaders (28%) said their organization has implemented GenAI, the most commonly adopted type of AI, but only 14% have implemented enhancement AI, which refines and improves existing content or data. Use of optimization AI (designed to improve efficiency) and predictive AI (designed to forecast future trends) is even less common, with implementation rates of 11% and 10%, respectively. Surprisingly, more than 1 in 3 HR leaders reported that their organization hasn’t implemented any type of AI and has no plans to do so.

Challenges of AI Implementation

Folding AI into HR is not without its obstacles. Among HR leaders who work for organizations that have implemented AI, only 2% reported that they didn’t face any challenges when doing so. For the other 98%, the most significant hurdles included:

• Lack of resources to support it (cited by 40% of respondents).

• Compliance with data protection laws (28%).

• Ethical concerns about AI use (26%).

• Risks of biases in AI decision-making (24%).

However, these obstacles aren’t insurmountable—and, moreover, it’s often worth the effort to unlock AI’s potential.

Putting AI Into Practice

To effectively integrate AI into HR practices, organizations must be willing to jump in and try something new (with appropriate guardrails, of course).

Key recommendations for getting started on an AI implementation journey include:

1. Boost Your AI Know-How

HR professionals who are driving the implementation of AI tools should take measures to better understand available AI technology and how to use it effectively. Organizations should allocate resources toward comprehensive training programs and workshops that focus on AI fundamentals and their practical application within the context of HR-specific tasks.

SHRM offers a variety of valuable educational resources through The AI+HI Project, including a downloadable playbook, timely articles, a weekly podcast and newsletter, and the SHRM AI+HI Specialty Credential.

 2. Foster Innovation

As the person or team spearheading AI initiatives, aim to develop a forward-thinking culture by allowing teams to spend time during the workday experimenting with AI projects. Pilot initiatives can yield valuable data, showcase the potential benefits of AI solutions, and uncover innovative strategies for leveraging AI tools to improve workflows. Group experimentation sessions or departmentwide hackathons—hourslong or dayslong events common in the computer programming industry in which a group of employees collectively develop new approaches to solving problems—can determine helpful applications of AI tools in a given department. Ultimately, you should create an environment that supports innovation and calculated risk-taking to really explore AI’s capabilities.

3. Collaborate with Others

Establish partnerships with internal teams that are already leveraging AI in their workflows, because these collaborations not only help build technological expertise but also create a better understanding of other complex issues surrounding AI, such as legal and ethical concerns. Additionally, consider external partnerships with vendors, academic institutions, and membership associations that can bridge internal knowledge gaps and accelerate AI adoption, potentially overcoming some of the biggest AI implementation challenges.

The Future of AI in HR

AI in HR is an evolving landscape with ever-changing tools, practices, and implications. It’s crucial to recognize that it’s never too late to start down your own path of AI knowledge and utilization. By addressing existing challenges and investing in the necessary resources, organizations can unlock AI’s potential to revolutionize HR functions. The future of HR is AI-powered, and the time to act is now. 

James Atkinson is the Vice President, Thought Leadership, at SHRM.