Generative AI can transform HR, making it more human-centric and cost-effective. A new study by Bain & Company reveals that businesses can save up to 20% in HR labour time by automating routine tasks. This shift allows HR teams to focus on strategic initiatives, such as talent development and employee experience, driving greater organisational value.

Bain's Generative AI Workforce Impact Explorer tool reveals that HR operations could see the highest time savings—up to 35%—while talent acquisition and HR business partners could save up to 20% and 15%, respectively. By automating routine tasks, HR professionals can shift their focus to becoming strategic advisers and culture architects within their organisations.

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"HR is function is under pressure to become both more cost efficient and more strategic. That is a challenging balance to strike," said John Hazan, a partner at Bain & Company and global head of the firm's Talent solution.

"Generative AI has the power to elevate HR's role from transactional operators to strategic advisers," added John.

Tasks such as drafting job postings, CV filtering, workforce planning, and employee engagement analysis are among the areas where AI could drive significant improvements. HR leaders adopting AI can also address challenges such as bias identification and sentiment analysis.

“Adopting generative AI is more than operational efficiency—it’s a leap toward innovation and strategic impact,” added Susan Gunn, Bain’s global head of Human Resources product solutions.

With generative AI tools now enabling real-time decision-making and advanced analytics, the HR landscape is undergoing a profound shift, blending technology with a renewed focus on human connection.