It’s a question a lot of HR leaders are asking: what does the future of AI and HR look like? What do we stand to lose? What do we stand to gain? What are the expected impacts and enhancements?

We asked these questions, and more.

Top findings

HR leaders reveal the top three use cases of AI: better analytics (32%), faster and more efficient operations (30%), and smoother HR processes (28%). HR professionals can benefit from the many hats AI can offer.

AI is already here. 85% of HR leaders are already harnessing AI-powered software, giving them a glittering competitive edge.

Over two-thirds (64%) of respondents believe AI saves time and makes their jobs easier. More than half (55%) anticipate a transformative AI revolution in HR.

In the push for AI-readiness, the essential skills identified by UK leaders are: data analysis/HR analytics (36%), soft skills (31%), ethical and responsible AI use (26%), and data security (24%). The key to success lies in balancing humanity and technology.

UK HR leaders anticipate an AI surge, with over half (55%) envisioning increased adoption. But a measured approach prevails, with 40% foreseeing a gradual rise.

How is AI impacting HR in the UK?

While the backdrop for big AI experimentation and regulation might be prickling the population’s heckles, early adopters of AI features are seeing things differently. The employment landscape for UK businesses is tough right now, but our research tells us that with the potential AI offers HR leaders, the cautious fire of optimism is burning.

Amongst the fallout of the great resignation, turnover contagion and the ongoing talent war waged between small businesses and enterprises alike — not to mention the continuing cost-of-living crisis we’re up against — it could be easy to miss that AI adoption has already started.

From daily discussions and learning on LinkedIn feeds to the wider use and acknowledgement of generative AI such as ChatGPT to new features being added to everyday tools such as Bing and Google search, let alone HR software! How we work, interact with information and run our businesses is changing.

The UK has embraced the development of AI technology, with our government recognising AI as a significant opportunity for economic growth and has actively sought to position the UK as a leader in AI research and innovation.

There’s early optimism sprinkled with a large dash of reservation around how AI can help HR leaders, from excitement around analytics to concerns around skills gaps. To help you understand how AI is affecting the world of HR and small businesses in the UK, we polled 300 HR leaders in small and large businesses alike in May 2023.

The findings might surprise you, resonate with you‌ or give you a keen insight into the what, where, how and why of AI in HR right now.

We hope this report helps you better understand this emerging landscape and gives you some transparency on how AI is going to affect and transform small businesses in the years to come.

The team at Employment Hero 

What’s inside the report?

We carried out quantitative research with 301 HR leaders in the United Kingdom. Respondents were primarily responsible for Employee Experience, Human Resources and Payroll. Ginger comms conducted the survey from the 11th to the 17th of May 2023.

With the data, we explore how:

• The microtrend continues
• The UK values “human” skills
• Generative AI is at the forefront
• Job loss is high on the concern agenda
• More AI tools = a greater need for data-savviness
• We’re ready to save time and make our lives easier
• Employee tools are expected to be the most affected
• AI could empower HR leaders with enhanced analytics
• A micro trend has emerged: timesaving V productivity
• It seems we’re not ready to let AI lead on personalised rewards
• Smaller businesses and older employees are far more sceptical

What HR leaders can do to embrace AI

We can’t ignore that the UK is experiencing a mixture of uncertainty and excitement surrounding implementing AI tools in the HR sector. Want our advice on how you could use this report to take your next step into the world of AI and HR? Here’s some next-steps based on our findings:

Embrace the potential of AI tools

If you’re a business owner or HR leader, consider exploring AI-powered tools that can help with content creation, and data analysis. These tools can help save time and make your job easier by streamlining repetitive tasks and providing valuable insights.

Focus on analytics and insights

Develop your (and your teams’) skills in data analysis and HR analytics to make the most of AI tools. Familiarise yourself with tools and techniques for analysing and interpreting data effectively. This will enable you to leverage AI-powered analytics tools and derive meaningful insights to support strategic HR initiatives.

Be ready for AI to impact recruitment

Stay informed about the latest advancements in AI-driven recruitment tools and platforms. Consider leveraging AI tools for tasks such as applicant tracking, job posting‌ and onboarding processes. However, make sure that employee engagement and personal growth initiatives continue to involve human interaction and guidance.

Embrace soft skills and data analysis training for your HR leaders

Invest in developing your soft skills such as communication, critical thinking‌ and empathy. These skills will be crucial in leveraging AI effectively and mitigating potential risks. Additionally, continue enhancing your data analysis skills to interpret and leverage large quantities of HR data.

Tackle scepticism and concerns head on

Acknowledge and address concerns about AI by fostering open discussions and providing information on the benefits and limitations of AI in HR. Highlight the potential of AI to augment human capabilities and emphasise the responsible use of AI technology. Stay informed about AI regulations and industry standards to ensure ethical AI implementation.

By following the advice off the back of our research, we hope you can navigate the evolving landscape of AI in HR effectively. Embrace the potential of AI tools, address knowledge gaps‌ and prioritise soft skills, data analytics and stay wary of the concerns your staff may have. By doing so, you can leverage AI to optimise your HR practices, improve employee experiences‌ and drive positive outcomes for your organisation.

If you’re looking to find out how AI can benefit your business, our platform already hosts AI-enhanced HR and recruitment features designed to help you work easy. If you’d like to learn more, reach out to one of our team and get your demo booked in today.

Methodology and sample profile

We carried out quantitative research with 301 HR leaders in the United Kingdom, with the survey taking around 5 minutes on average. To be eligible, respondents had to be primarily responsible for employee experience, Human Resources and payroll. Ginger comms conducted the survey from the 11th to the 17th of May 2023.