New Study Reveals AI Will Dramatically Change Talent and People Management
New research from Boyden, a premier talent and leadership advisory firm, revealed the ways Artificial Intelligence (AI) will change HR in the ways of talent and people management by looking at the global changes and opportunities connected to tech – including people strategy, approaches to the board and management, global workforce alignment, hiring and training.
The report titled, Boyden Senior Executive Survey: The CHRO and the Future Organization, showed that almost all (94%) Chief Human Resources Officers and HR executives believe the rise of AI and technology will alter the HR function. Furthermore, nearly 40% expect drastic changes to people management with even greater tech influence.
Part of the report, available here, looks at the global changes and opportunities connected to tech, including people strategy, approaches to the board and management, global workforce alignment, hiring and training. The survey included a global panel of 310 CHROs, senior HR executives and other HR decision makers across all industries in United States, Germany, United Kingdom, Canada, Mexico, Brazil and Australia.
“AI is both overestimated and underestimated. At first glance, AI is just a tool for faster learning and operational excellence,” said Robert Winterhalter, Ph.D., Global Leader, Human Resources Practice and Managing Partner, Boyden Germany. “Good HR leaders and other senior executives will both leverage it to improve operational efficiency and speed of transformation, and to affirm trust and respect from operational lines of management.”
“AI is just a tool, not a solution,” said Jörg Kasten, Chairman of Boyden. “HR requires the personal touch of someone who is able to effectively communicate with and inspire people.”
- Nearly half (48%) expect AI and technology will streamline performance management and increase skills-based hiring (47%). Similarly, 42% of HR execs surveyed say new technology will speed up hiring, while 41% believe new tech will improve onboarding.
- 67% of respondents from the industrials and energy sectors combined can see AI replacing human recruiters, at least after initial job interviews.
“While most CHROs and executives indicate they rely on their team or they are not prepared to implement AI, a much smaller percentage are hiring employees with technology and AI skill sets,” added Karen Wefelmeyer, CHRO, d&b audiotechnik, in reviewing the survey results.
- Only 60% of Canadian HR execs say they are well versed or have a team that is well versed in AI, while 66% of UK execs say they are prepared. This contrasts with 96% of execs in Mexico believing they are prepared to deploy AI, followed by 88% in Brazil and 84% in Germany. The US and Australia fall somewhere in the middle, with 75% and 70% saying they are prepared, respectively.
“AI, as a candidate processing and selection tool, will undoubtedly transform the way we hire people in the future,” said Francesca d’Arcangeli, Global Leader, Industrial Practice and Managing Partner, Boyden United Kingdom.
- Among Human Resources decision makers’ views on the potential for HR in the age of AI, 70% selected performance assets aided by AI and technology as the top opportunity in running an HR division, while 60% say relying on analytical processing and data, as opposed to individual observations, is a key opportunity.
- However, 61% of the HR executives surveyed say hiring people with the right skill sets is a challenge, and 60% are concerned about keeping up with technology advancements.
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