Around 45% of HR professionals are currently using AI for HR management, and 39% plan to use it in the near future, according to a study by Engagedly. The State of Artificial Intelligence in Human Resource Management: A 2023 Report found that AI adoption is growing rapidly, automating repetitive tasks, improving decision-making processes as well as the overall employee experience.
Engagedly said the HR functions that organizations currently use AI for tasks related to performance management, employee engagement and satisfaction, training and development, talent acquisition and employee inquiries and assistance.
The survey showed that 65% of respondents said AI has greatly improved efficiency and productivity in their organization’s HR management. Only 4% said that AI had no significant impact.
Pros and Cons
Despite such numbers, around 31% of HR professionals said that while AI has its benefits, it also brings on some challenges. The biggest difficulty, respondents said, was integrating AI with existing HR systems. Other top problems included a lack of understanding of AI, difficulty measuring its effectiveness and a lack of resources or skilled professionals.
In addition, the survey said many respondents had concerns regarding data privacy, with 50% calling it a major issue. In addition, many said their organizations have established ethical guidelines to govern the use of AI in HR management, and some have started training staff in this area.
“To fully leverage the potential of AI in HRM, organizations must adopt a strategic approach that takes into account their unique needs and challenges,” the company said. “This could entail investing in AI training for HR professionals and establishing an AI governance framework that ensures the ethical and equitable use of AI.”
In May, Engagedly launched Growth Hub powered by Marissa AI, a module that helps employees take ownership of their career growth by assisting them in developing their skills through skill-based organization. The module is powered by the company’s Marissa AI.