Lack of expertise, time and budget are the biggest stumbling blocks to implementing AI in HR
Improving the employee experience is the biggest driver
By Dirk Buyens
Professor of Human Resources Management
By Sarah Quataert
Senior Researcher, Human Resource Management
Although AI is already firmly embedded in many business domains such as IT, marketing and customer service, its adoption within HR is lagging behind. This is not due to resistance, but rather to a cautious and step-by-step approach. The roll-out of concrete AI projects is low on the list of HR priorities, given the many other challenges faced by HR departments. Nevertheless, there is a clear openness and belief in the possibilities of AI: most leaders in the HR sector do not regard AI as just another hype or worry that it will surpass human intelligence. These are the main findings of the 11th edition of the HR Barometer, an annual survey by Vlerick Business School and HR consultancy Hudson, part of Randstad Group Belgium, conducted among 123 of the 250 largest Belgian employers.
It is striking that none of the HR directors are making a conscious decision to avoid the use of AI. There is plenty of experimentation and exploration, albeit in small, controlled steps. Nevertheless, six out of ten HR directors (59%) state that AI is hardly used or only used to a limited extent in their organisation, and 58% think that the adoption of AI in their organisation is happening too slowly. A quarter of the HR directors surveyed (24%) also feel there is a lack of a clear strategy for the use of AI within HR. Despite the growth potential, there are still significant barriers that are delaying its further adoption. Contrary to popular belief, the biggest challenges do not lie in ethical issues, regulations or a lack of trust. The lack of expertise, budget, time and qualitative data are perceived as the biggest stumbling blocks to prevent the wider implementation of AI in HR.
The strategy for the implementation of AI also varies greatly: only 3% are going for full integration, while the majority are introducing AI gradually (45%). In addition, 14% are mainly focusing their AI strategy on its implementation in just a few administrative processes, while another 14% are waiting until more knowledge about the technology is available before determining a strategy. Currently, language models are mainly used for content creation such as writing or rewriting job offer texts or creating videos (69%), while more complex applications, such as predictive algorithms to analyse CVs or predict turnover (14%), the automation of HR processes (18%) or chatbots to communicate more easily with employees and candidates (25%), are less common for the time being.
Value creation over cost savings
AI is mainly seen as something that leads to value creation (48%) rather than cost savings (29%). It is therefore not surprising that improving the employee experience is seen as the biggest driver.
AI is mainly used in recruitment (70%) and HR operations (60%), followed by areas such as job architecture (52%), selection (50%) and L&D (46%). Talent management (17%) remains the area least influenced by AI at present.
In addition to the internal application of AI, HR staff also play a facilitating role in the broader AI transformation within their organisation. This mainly happens through AI training (46%), knowledge sharing (40%) and the recruitment and selection of talents who have new AI skills (39%). This makes HR a strategic partner in the digital transition.
“Although AI in HR is currently a low priority and CHROs indicate that their mastery is relatively low at present, there is still plenty of experimentation with AI applications in HRM. In addition, we are seeing a strong belief that AI can help free up time for strategic priorities such as strategic workforce management and competency management. There is also a growing conviction that it can greatly increase the quality of a number of HR processes and decisions, which further emphasises the role of HR as a strategic business partner”, says Dirk Buyens, Professor of Human Resources Management at Vlerick Business School.
AI and employment: no immediate threat
The impact of AI on employment is a hotly debated topic. Almost half of HR directors do not expect AI to replace jobs within their organisation, while only 20% think it will have a significant impact. This confirms the idea that AI is not intended to replace people, but rather to support and strengthen them.
“With the emergence of stricter regulations such as the Artificial Intelligence Act, it is becoming crucial for HR to define a strategic path. AI applications in HR are considered high risk, which means that transparency, ethics and human supervision are absolute priorities. This calls for a thoughtful approach in which HR finds the balance between innovation and compliance”, says Ellen Volckaert, Senior R&D Manager at Hudson. “The future of AI in HR is not one of immediate disruption. HR is taking gradual steps in the AI revolution, with a focus on value creation and responsible experimentation. The coming years will be crucial for the further growth of AI in HR, so that it can serve the human capital in the organisation.”
About the HR Barometer
The HR Barometer is a research project initiated by the Vlerick Strategic Talent Management Centre at Vlerick Business School. This expertise network focuses on knowledge building and sharing within HR and Talent Management. Together with 30+ member organisations from various sectors, the research centre keeps a finger on the pulse of effective HR practices and relevant developments in the field.
About Hudson
Hudson helps organisations and their employees – experts, executives and business leaders alike – to develop and express their full potential. We offer specialised solutions in permanent recruitment, talent management (assessment centres, coaching & development, salary surveys, job classifications, etc.), interim management and HR tools. The latter were developed by our own internationally renowned R&D department. Our HR solutions are not only aimed at companies that want to get the best out of their employees, but also at professionals who are looking for a reliable HR partner to support them in their career development. Hudson’s services guarantee high added value at all stages of the HR life cycle. With clients ranging from SMEs to multinationals, both in the private and public sectors, our company has built a reputation for professionalism and excellence in HR consultancy for more than 40 years. Hudson has formed part of Randstad Group Belgium since December 2021.