This post was originally published on this site.
While some executives make the leap from human resources to CEO—General Motors CEO Mary Barra and former Dunkin’ Brands CEO Nigel Travis provide prominent examples—it’s still somewhat of a rarity.
But the arrival of Generative AI in the workplace could change everything, including the pathways to the C-Suite. Because the unlikely leader in the adoption and use of Generative AI is … human resources. As a result, what has traditionally been a rarity could become a lot less so.
It is not that GenAI will magically catapult more human resources chieftains into corner offices. It’s what the HR execs are doing with AI.
In a growing number of companies, the human resources team is leading the charge to integrate AI into corporate decision-making and operations. Rather than going along for the ride, they’re piloting the introduction. In fact, Julie Bedard, a managing director at Boston Consulting Group and an expert in organizations’ use of GenAI, estimates that among those that already have deployed AI, between 70% and 80% are using it in HR.
Human resources (HR) is the under-loved corporate function. Previously known as “personnel” in most organizations, traditionally HR has ranked below other management functions in corporate hierarchy.
This is unfortunate, because every organization’s success depends on the dedication, industriousness, intelligence, inventiveness, team-spiritedness and good-naturedness of its people. And HR in most organizations has been, and remains, responsible for finding, recruiting, onboarding, training, and (ideally) facilitating the growth and advancement of those people.
Over the years, as technology assumed a bigger role in the workplace, and as employment law became more expansive and complicated, the expectations on the HR function have steadily increased. HR leaders became actively involved in recruiting talent. They assumed responsibility for seeing that employment law and workplace safety requirements were observed. They played a critical role in training and development. DEI activities fell to them. In time, even the lexicon changed: “personnel” became “human resources” and the director, or VP, of personnel became the chief human resource officer (CHRO).
Now we are seeing the next step play out before our eyes: HR is taking the lead on integrating artificial intelligence (AI) and generative AI (GenAI) into the decision-making and operations of organizations.
The role is a perfect fit, because when it comes to AI the biggest concern many employees have is whether the new technology will “take” their jobs.
As with other technologies, some jobs will, of course, become obsolete. But what AI likely will do in most cases is change the nature of jobs—as it already is doing in HR departments around the globe. Unlike Las Vegas, however, what happens in HR won’t stay in HR. And that’s the point.
So, how is HR using AI? And what are the outcomes to date?
Early adopters of GenAI in human resources have started with some obvious lower-risk areas that offer higher near-term productivity gains.
A BCG survey of approximately 150 CHROs and other senior-level HR executives at large companies in North America and Europe, conducted in May and June of this year, found the highest use in the following four areas:
1. Administration. 70% of the HR early-adopters said they are “implementing, piloting, or scaling” programs using generative AI that are aimed at improving HR administrative functions—and another 25% said they were considering such actions.
2. Recruiting. 70% are moving on recruiting initiatives involving generative AI, with an additional 18% considering them.
3. Talent Development. 28% have talent development initiatives using AI in the works, with another 44% considering them. And,
4. Employee Engagement. 24% of respondents said programs to improve employee engagement are underway, and 36% said they’re being considered.
Focusing on the first two areas, where the experience level is greatest:
Administratively, GenAI is being used to streamline services, resulting in faster, higher-quality, and more-consistent responses to employee questions and requests.
GenAI helped a major airline, for example, reduce the amount of time needed to respond to employee inquiries from about three days, on average, to less than two days.
In the area of recruitment, the results at our own company have been eye-popping, with overall recruiting costs dropping 20% to 25%, the time required to onboard new employees (from the initial contact with candidates to their first day on the job) falling by as much as 50% in some cases, and the number of candidates accepting job offers ticking up by 10% to 15% compared to the “old way.”
What Comes Next?
In practice, generative AI is still a new tool. Companies, including their HR teams, are only at the beginning of the journey. AI will become smarter—and more useful—as AI and its users gain more experience.
In the realm of talent—a top-priority in every organization—we see AI involved in the entire ecosystem: projecting organizational needs and identifying candidates for employment, creating personalized learning and development programs, coaching, monitoring productivity, tracking compliance with internal policies and procedures, and minimizing risks. All this will be done in concert with HR, which will review and approve (or reject!) all AI decisions, a necessary safeguard.
Don’t be surprised to see more CEOs like Mary Barra and Nigel Travis in the near future as CHROs spearhead efforts to integrate AI companywide. As I said earlier, what happens in HR won’t stay in HR. And that’s the point.