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

Jill Barthhttps://hrexecutive.com/
Jill Barth is HR Tech Editor of Human Resource Executive. She is an award-winning journalist with bylines in Forbes, USA Today and other international publications. With a background in communications, media, B2B ecommerce and the workplace, she also served as a consultant with Gallagher Benefit Services for nearly a decade. Reach out at [email protected].

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.

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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.

Deel AI screenshot

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.

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Screening and credentialing solution KarmaCheck—a new venture of one of the co-founders of LinkedIn, Eric Ly—raised $45 million in its Series B round, tripling the amount from its Series A. The round is led by Parameter Ventures, with participation from NextView Ventures, Pruven Capital and Velvet Sea Ventures.

AI-driven talent acquisition and management solution Findem has announced the global availability of its new Copilot for Sourcing. Integrated into Findem’s Talent Data Cloud, this feature automatically creates active talent pipelines from all hiring channels. It is now available to all current Talent Data Cloud clients at no added cost.

LinkedIn launched new AI-powered learning features to enhance career coaching. These include an AI-driven chat interface for personalized advice from business leaders. LinkedIn is also expanding AI-powered coaching across its courses, allowing learners to request summaries and clarifications in real-time.

Bullhorn staffing and recruitment software has acquired the AI-powered sourcing solution Textkernel, which serves 2,000 global customers, including eight of the top 10 staffing firms and multiple Fortune 500 companies. The move was supported by investors Stone Point Capital, Insight Partners and Genstar.

Culture Amp employee experience platform announced the launch of its new People Analytics product, following its recent acquisition of the people analytics platform Orgnostic. The product integrates with Culture Amp’s existing platform, intending to provide actionable workforce data. It will be available starting June 30.

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