AI Investments Is All About Investing in People
On January 2, a Mercer survey revealed human resources (HR) leaders are prioritizing AI tools in HR for a more human-centric productivity in 2025, but limited resources challenge their ability to deliver on these goals.
With workforce issues like burnout and skill gaps, HR leaders are turning to AI as a strategic solution to balance tightened budgets with sustainable growth, tackling the urgency for actionable AI applications in HR.
Yet, even with these challenges, there is recognition that adoption of AI in HR is a strategic asset for bridging gaps. That need for definitive AIapplication in HR action this quarter underlined the priorities in line with the benefits of AI in HR actionable plans to lay the foundation for sustainable growth.
Bridging the Gap between Priorities and Resources
According to Mercer, a global consulting firm, one in three companies say they cannot fill the positions. The top three priorities for AI in HR functions are developing manager skills, enhancing the employee value proposition, and designing talent processes centered on skills. Yet, there is a disconnect between these priorities and resources devoted to achieving them.
Burnout in AI applications in HR is still a problem, with 58% of workers struggling, according to Gallup’s 2024 State of the Workplace report. Yet only 40% of employers plan to focus on addressing AI in HR department burnout in 2025.
“Teams are still reporting being burned out and lean,” says Kate Bravery, Partner and Global Advisory Solutions Leader at Mercer, adding, “how do we free up capacity?” For Bravery, reskilling and redeploying employees is key, although external hiring will always be necessary to support growth.
Competitive Advantage in Constrained Budgets
The AI adoption in HR has also made many organizations use this to boost efficiency and support teams that are overstretched. As beneficial as the advantages of AI in HR could be in offering automation and informed decisions, most of the time the deployments lack sufficient financial backing. “Many will walk into 2025 where the budget doesn’t quite marry up to the ambition,” says Bravery.
She said that companies successful with AI tools in HR embed the technology into general business operations, not in a specific project. Leaders are leveraging AI to reimagine workflows, freeing up capacity and driving innovation. But the effective deployment of AI in HR requires planning and prioritization. “This is going to be a year of intentional investment,” Bravery says.
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