Exploring the AI opportunity for HR

Guest post by Katie Whitehouse, Senior People Director, EMEA at ServiceNow

The potential of AI is incredible, but many businesses—and employees—need guidance. The human resources (HR) department can play a critical role in shaping the organisation’s AI strategy and preparing the workforce.

According to the ServiceNow Employee Experience (EX) Trends Report, AI is used by 69% of global ‘HR innovators’—the senior HR executives in the most digitally advanced organisations. Around two-thirds (65%) of HR leaders say the technology will radically change how work gets done.

Drawing on insights from the EX Trends Report, let’s explore how HR executives can lead the implementation of AI, set an example through AI for HR, and become change agents in business transformation.

Collaborating to define digital strategy

HR is increasingly working cross-functionally to align workforce and business performance. Chief human resource officers (CHROs) can work with business leaders to implement a strategic plan for business transformation—powered by AI.

The EX Trends Report found that almost half (47%) of CHROs in digitally advanced organisations are strategic partners to chief experience officers and other business leaders. Only 31% of HR executives whose organisations are at the start of their transformation journeys reported the same trend.

Partnerships across the organisation may include working with:

• Tech leaders to explore HR solutions to manage talent strategies, new legislation, or technology developments
• Innovation leaders to build a culture of experimentation with AI and other digital technologies
• Marketing leaders to differentiate employer branding strategies using AI

Driving workforce productivity

Digital technologies like AI can support business goals across a range of performance metrics.

Since digitalising HR, around half of the global HR innovators in our study have reduced costs (51%), increased revenue (51%), and improved planning and decision-making (50%). A similar proportion reported greater productivity (48%) and stronger corporate culture (48%).

Preparing the workforce with the right skills

In the face of rapid technological advancement, 56% of HR leaders polled in Europe are concerned their workforce isn’t fully prepared for the next business era, according to our research.

HR teams globally are exploring several options for transforming the workforce:

• 48% are preparing training programmes to meet future workforce demands.
• 46% plan to hire essential talent, focusing on roles that will drive future growth.
• 32% are offering mentoring opportunities to facilitate knowledge transfer and leadership development.

AI, data, and other digital technologies can improve talent management by supporting more strategic, informed decision-making. Over half (62%) of HR innovators use data analytics to identify their organisations’ talent needs, helping to predict and seize upskilling opportunities.

By investing in a mix of upskilling and hiring initiatives, HR leaders can build resilient, future-ready workforces.

Transforming operations with AI for HR

Global HR innovators in our study are using AI to help with workforce optimisation (80%), employee service and support (74%), and talent development (74%).

Over two-thirds (68%) of innovators also make moderate or high use of generative AI for content generation and summarisation. This includes creating job descriptions and communications and screening job applicants more efficiently.

AI-powered self-service HR platforms can give workforces greater capacity to focus on high-impact work. Nearly half (46%) of the HR innovators we surveyed have employed these types of portals.

ServiceNow customer Deutsche Bahn is one example. The company used HR Service Delivery to create a standardised portal called Meine DB, which supports 300 HR processes and gives employees one-stop access to HR information and services.

The system is a vital part of Deutsche Bahn’s efforts to consolidate HR information for its large and expanding employee base. The company hires between 20,000 and 30,000 employees per year.

Staff can trigger processes independently via self-service and view all case statuses and information with ease, thanks to AI search features.

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