Unleashing the power of AI: transforming HR into a strategic force in business

In the ever-evolving landscape of business operations, the role of human resources (HR) is undergoing a profound transformation. As organisations strive for agility, insights and efficiency, the role of HR is transforming from operational executor to holistic strategic partner. But while HR has always been a key organization strategist, we’re also seeing how technology is playing a crucial role in the visibility of HR’s strategery. At the heart of this evolution is the integration of artificial intelligence (AI), which is reshaping how HR functions and positioning it as a key player in organisational success.

Current HR technology challenges

Despite being inherently data-centric, many HR teams find themselves without the essential technological tools needed to be more efficient, strategic and effective in their roles. Recent reports indicate that over 30 per cent of HR teams lack benefits technology, leaving them without the modern resources to identify gaps, measure change and produce meaningful results. This technological deficit hinders their ability to navigate the complexities of their roles, creating a pressing need for innovative solutions to further HR’s ability to driving meaningful results and change for their organization.

But these challenges go beyond just efficiencies. A lack of technology and workplace resources is giving rise to an empathy crisis within HR as professionals struggle to balance conflicting priorities between employees and the C-suite. Businessolver’s 2023 State of Workplace Empathy report paints a stark picture, indicating that only 68 per cent of HR teams believe their organisations are empathetic, a notable decline from the previous year. The need for technological advancements and a renewed focus on empathy is becoming increasingly apparent.

AI is a game-changer for HR

The latest revival in popularity of AI is proving to be a pivotal moment for HR. As organisations increasingly rely on technology stacks, AI is poised to shift HR from a mere executor of tasks to a strategic force for workplace culture, business stability, and organizational success. In a business landscape where agility, insights and empathy are paramount, AI is becoming the catalyst for change.

Empathy: the unseen element of AI

While empathy may not be the first quality associated with AI, it is emerging as a critical factor, especially in HR. Beyond efficiency and productivity gains, empathy in AI is proving to be a powerful part of enhancing the employee experience. A case in point is Businessolver’s data, which reveals a 19 per cent increase in employee benefits engagement when AI delivers personalized reminders to employees about right-fit benefits when employees likely need them most.

AI as HR’s critical co-pilot

AI has the potential to be a critical co-pilot for HR teams, propelling them into a strategic partnership that puts them in the frame with broader business objectives. The urgency of adopting AI solutions is underscored by the fact that 76 per cent of HR leaders acknowledge that failing to embrace AI, including generative AI, within the next 12 to 24 months would leave them at a competitive disadvantage.

The true potential of AI in HR

The true potential of AI in HR extends beyond the conventional realms of efficiency and cost management. Beyond streamlining operations, AI has the power to positively impact employee wellness and organisational culture. When HR teams are equipped with the right technology, tools and accessible data, their roles are supercharged with added efficiencies and insights. The transformative impact of AI positions HR not only as a key player but as a strategic influencer and advisor to C-suite.

Embracing the future of AI in HR

It is imperative for organisations to think beyond the immediate applications of AI in HR. While efficiency and cost management are undeniable benefits, the true value lies in the positive impact on employee wellbeing and overall organisational culture. The strategic influence of HR within the C-suite is contingent on embracing AI and recognising its potential to revolutionise traditional HR functions.

As the business landscape continues to evolve, HR stands at the crossroads of change. The integration of AI is not just a technological advancement but holds the promise of unlocking unprecedented potential. The time is ripe for organisations to invest in the future of HR, where technology and empathy converge to create a workplace that is not only efficient but also deeply attuned to the needs of its most valuable asset – its people.

Learn more about how empathetic AI and technology are shaping the future of HR at Businessolver.

By Jon Shanahan, President and CEO at Businessolver