HR leaders are still divided on whether or not to embrace AI, research finds

The study found that almost two-thirds of HR leaders believe that AI will positively impact their practices over the next five years.

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The growing implementation of AI usage in the workplace comes with both skepticism and enthusiasm. New research from Deel, an all-in-one payroll platform, reveals that a large divide remains between HR workers who embrace new technology and workers who hesitate when it comes to AI. 

The study found that while almost two-thirds of HR leaders believe that AI will positively impact their practices over the next five years, the majority of those not already using AI said they are unlikely to implement it any time soon. Just 38% of HR decision makers currently employ AI in their workflow and only 23% of those not currently using AI, plan to embrace it within the next year. 

More significant is the number of HR leaders who do not currently use AI in their practices and do not plan to implement it within the next 12 months – 70% – highlighting a clear gap in understanding and acceptance, according to the research. 

Those who do embrace AI believe the areas that will most likely benefit from its usage include HR analytics, checking employment laws, employee learning and development and payroll management. 

The optimism for AI that does exist is especially prevalent among younger HR decision makers, with 86% of those aged 25-34 expecting beneficial outcomes from its usage. Meanwhile, only 38% of HR workers aged 55 and older share the same sentiment, and over a quarter believe it will have a “somewhat” or “significantly negative impact.” 

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Surprisingly, the research found that larger companies are also more receptive to AI. Eighty-five percent of HR leaders from large businesses, with 250 or more employees, are optimistic about AI and believe it will have a “somewhat” or “significantly positive impact,” on HR in the next five years, compared to only 47% of small companies, with 250 or less employees. 

However, AI does come with its challenges. HR leaders shared that their top concerns when it comes to AI included reliability and accuracy, along with data security and privacy. The research also revealed that there is a fear of loss of personal touch, signaling the importance of human interaction. 

In the coming years, companies will need to grapple with the rising usage of AI and whether the benefits outweigh the potential risks.