Article: HR Divided on AI: Adoption lags despite optimism on benefits

Strategic HR

HR Divided on AI: Adoption lags despite optimism on benefits

Despite strong belief in AI's potential, HR leaders, especially those in younger or larger companies, are adopting it faster than their smaller or more experienced counterparts.
HR Divided on AI: Adoption lags despite optimism on benefits

A new study by Deel reveals a disconnect between HR leaders' belief in Artificial Intelligence (AI) and its actual use. While a strong majority (61%) believe AI will positively impact HR practices in the next five years, only 38% of HR decision-makers surveyed are currently using AI in their workflows.

The Deel research, which surveyed over 1,100 HR professionals across the US, UK, and Australia, found a clear age and company size divide in AI adoption.

Younger HR leaders (under 35) are overwhelmingly optimistic about AI's potential, with 86% expecting positive outcomes. However, those over 55 are more sceptical, with only 38% sharing the positive outlook, and a quarter (26%) fearing a negative impact.

Similarly, larger companies (250+ employees) and those with higher revenue are significantly more likely to have embraced AI.  Just 13% of companies under $1 million currently use AI, compared to 61% of those exceeding $10 million. This disparity could create a competitive disadvantage for smaller businesses struggling to keep pace with efficiency and innovation.

Despite the optimism, HR leaders still have reservations about AI. Data security and privacy (16%) are the top concerns, followed by the potential loss of the human touch in HR processes (13%).

Interestingly, areas like employee dismissal (13%) and recognition (21%) were seen as less suited for AI, highlighting the desire to maintain human interaction in sensitive areas.

"We are at a pivotal moment," said Aaron Goldsmid, Head of Product at Deel. He emphasised the potential cost of AI hesitancy, suggesting many businesses are missing a competitive edge. 

"This reluctance to adopt AI is not just about the use of technology, it means many businesses are missing a trick in terms of gaining a competitive advantage in efficiency and strategic insight," he added.

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Topics: Strategic HR, #Artificial Intelligence, #HRCommunity, #TechHRIN

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