Artificial intelligence (AI) is an inescapable topic of conversation among executives today. And as such, Chief Human Resources Officers (CHROs) can’t help but recognize the trajectory of AI and their responsibility to enable it safely both within the HR function and across the workforce. In 2024, it is evident that traditional AI and generative AI are impacting CHROs’ critical priorities, and for the first time, they have named AI solutions as a top spending area.
Last year, we surveyed Evanta’s CHRO community members about their opinions and initial approach to AI, and recently, we surveyed them again about their progress towards AI adoption.
Here is a snapshot of what over 250 CHROs had to say about AI usage at their organizations.
What is the status of AI Implementation?
Compared to their C-level counterparts, CHROs are in the preliminary stages of AI adoption, and they are primarily divided between having developed some use cases or piloting projects (40%) and still having work to do before they can begin implementation (40%). Only 20% of respondents cited that they either completed pilot projects and are evaluating the results or have achieved measurable results from their AI implementation.
One CHRO who is further in their journey commented, “While there are significant risks, our early pilots and use cases are already showing some real promise.”
How does their organization approach technology adoption?
CHROs were asked to rate how their organization approaches new technology adoption on a scale from Innovators, Early Adopters, Early Majority, Late Majority or Laggards. And similar to their progress with AI, roughly half of CHROs reported being in the back of the pack – as Late Majority or Laggard. Approximately one-third of HR leaders (34%) said their organization is in the Early Majority, 13% said it is an Early Adopter and only 4% believe it is an Innovator.
Are they taking the same approach to AI adoption?
From an AI perspective, 85% of CHROs acknowledge that their company is taking the same approach to AI as other technological advancements or solutions. But in the comments, many expressed some frustration with this. They shared that they aim to “catch up” or would like to “move quicker.”
Fifteen percent of CHROs are taking a different approach to AI – some moving faster with direction from the top. One HR leader divulged, “Our CEO is exceptionally passionate about this specific topic and has asked that we become innovators in this aspect of work.” Another said, “The Board has determined this is a strategic priority.”
What might be slowing their adoption?
Seventy-four percent of HR executives are concerned if they can deploy AI securely, 70% percent are unsure if data privacy is rigorous enough to meet their standards and 69% do not know if they have the capability to manage how the workforce is using it. These concerns are significantly higher than what CHROs reported in our 2023 survey.
What’s their outlook on AI?
Although CHROs expressed substantial concerns about AI adoption, they have an overall positive view of AI’s impact on the future of business – with 87% of respondents saying they are either “very positive” or “somewhat positive.” This data is comparable to what they reported in our 2023 survey; however, more HR executives are experiencing “very positive” feelings than last year.
How are they implementing AI tools?
Forty-four percent of CHROs report that their organization is typically buying new AI tools, and 36% say that their organization is equally buying and building new AI tools. Only 6% are predominantly building AI tools.
For the 13% who selected “Other,” a few commented that they are using free AI tools. Others stated that “we aren’t there yet,” or they are “still identifying use cases.”
Current Sentiments About AI
Furthermore, we asked HR executives an open-ended question about their AI adoption journey and to describe their sentiments. Here is a sample of their comments:
I am an avid, though thoughtful, proponent. I believe it is a force multiplier and can help level many people up and out of the administrative and on to more strategic tasks.”
I personally am using AI in my work in areas that I never predicted would happen and appreciate what it brings to the table.”
We see it as something that will become a natural part of the work (like the Internet or social media). So, we should embrace it and figure out how to leverage it to help support our business strategies now, instead of avoiding it like we have in the past with those examples.”
It can feel like AI is evolving ahead of us, and we are not side-by-side with understanding and scoping the opportunities. We need to upskill our leaders to be able to lead in this space.”
I’m concerned about how to manage it effectively, and I question whether it will increase efficiency and productivity, or just remain status quo but look different.”
Tons of potential, but risks are significant and should not be ignored. From an HR perspective, the possibility of the number and type of roles that can be replaced could create a tremendous shift in the workforce like we have never experienced.”
If you are an HR leader navigating AI implementation at your organization, explore an opportunity to discuss it with your peers by joining an Evanta community near you. If you are already a member, sign in to MyEvanta to find your community’s next gathering.
Based on 250+ responses to Evanta’s Community Pulse Survey, June 2024.
by CHROs, for CHROs
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