Senior business leaders are leveraging various AI tools to drive cost savings for their organisations amid tightened budgets. However, to fully harness AI benefits, more education and training are required to alleviate employee fears

As per new research from HR software company Personio, which surveyed 500 HR Decision Makers across the UK and Ireland, currently, AI innovation is predominantly steered by top-level UK leadership, with 81% of HR decision makers signalling a keenness for AI adoption at the senior level. 

Yet, while the overall push is top-down, younger employees are swiftly adapting to AI's ascent. Among HR professionals aged 25-34, 78% are actively using AI-powered tools, contrasting with 69% among those aged 55+, signalling a clear generational divide in AI adoption.

In a climate where the job market remains uncertain and business budgets are scrutinised, AI-powered technologies offer a chance to quantify tangible cost benefits. A staggering 91% of HR managers leveraging AI tools anticipate or have already experienced cost-savings within their departments.

Efficiency stands out as a key driver, with 59% believing AI will streamline HR processes, liberating time from administrative tasks like onboarding, payroll, timesheets, benefits administration, and learning and development. This time reallocation allows HR teams to concentrate on talent acquisition, ultimately enhancing organisational performance.

However, apprehensions about job losses and a lack of education seem to impede AI adoption among employees, with 51% citing job loss concerns as a primary challenge. Encouragingly, 97% of HR Decision Makers acknowledge the necessity of training for effective utilization of generative AI in HR processes.

Pete Cooper, Director of People, Partners & Analytics at Personio, emphasised the importance of education in AI adoption: "Educating employees about AI is vital. Introducing AI should be coupled with comprehensive training and education, empowering the workforce with the skills to use AI responsibly and confidently, thereby transforming fears into confidence and enhancing the overall employee experience."

"AI cannot replace your job. A job is complex, and AI can only handle some tasks. Instead, AI can enhance work, freeing individuals from less enjoyable tasks. The more we integrate technology and AI, the more we appreciate human qualities that are truly unique,” Applied Futurist Tom Cheesewright offered reassurance.