HR is at a critical juncture. For years, the function has been under pressure to meet mandates that feel at odds. On one hand, executives have called on HR to become more cost efficient. On the other, they want it to be more human centric and strategic. HR teams often feel caught in a tug-of-war. HR business partners (HRBPs) struggle to move beyond generalist roles, centers of excellence (COEs) are bogged down by administrative work, and shiny new tech solutions don’t live up to their promises.
Enter generative AI. Paradoxically, the technology can help HR professionals have a more human touch—and at a lower cost than ever before. By enabling drastic efficiency in transactional tasks, it frees up HR professionals to refocus on their expertise and play a more strategic role. In fact, Bain analysis shows that companies can save an average of 15% to 20% in HR labor time through AI automation and augmentation.
But AI isn’t a magic wand for HR’s problems. So, how can companies identify which HR tasks are ripe for generative AI? How can they reshape traditional HR roles, career paths, and operational strategies to make the most of the technology?
Redefining roles for generative AI
Generative AI has the power to elevate HR’s role within the organization, transforming practitioners from transactional operators to strategic advisers. But to capture its full potential, chief HR officers (CHROs) need to pinpoint where AI can have the greatest value.
According to Bain’s Generative AI Workforce Impact Explorer, automating or augmenting select HR tasks can save more time than others. Certain tasks consume a disproportionate share of HR capacity, offering a roadmap for AI investment. For example, HR operations tasks, which tend to be more transactional in nature, are prime candidates, as AI can save around 25% or more in employee time.
With AI streamlining everyday tasks and reducing the human involvement needed for routine processes, CHROs can rethink their teams’ structure and skill sets. They can become more efficient and reallocate time saved with AI to value-added tasks. COEs can become hubs of innovation, HRBPs can evolve into advisers of the business and designers of workplace culture, and shared service centers can become frictionless. The key is redefining job roles and responsibilities to match these new realities. READ MORE
By John Hazan and Susan Gunn
Source: bain.com
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