Artificial intelligence (AI) in HR research

Author: Hannah Mason

Artificial intelligence (AI) has the potential to disrupt the HR function as we know it. New research from XpertHR explores how organisations in the UK are adapting to advancements in AI technologies and the approaches to AI that have been adopted.

With ChatGPT having gained 100 million users within months of launching, talk of how AI can transform our working lives has become a highly discussed topic. Some organisations have already started using AI to transform their working practices, while many are yet to take the step in adopting these new technologies. AI has the potential to change the HR function in a variety of ways, from the systems used in HR employees' daily work to workplace transformations that will require the support and expertise of HR.

This new research from XpertHR explores how UK organisations have responded to the advancement of AI technologies and the areas where AI may be able to support the work of HR. We also hear from HR practitioners on how AI has been used to evolve practices and the challenges that they have encountered.

Benchmarking - HR Metrics

XpertHR Benchmarking - HR Metrics has the full data from this survey. The dataset can be filtered to produce results for organisations operating in the different broad sectors, industries and the number of employees.

Main goals for HR departments

AI has the potential to assist in a multitude of ways within HR, from automating repetitive tasks to creating or updating policies and streamlining recruitment processes. We asked respondents to select the main goal for their department, which can be used to highlight the areas where AI could best support HR.

The top three goals for HR departments were reported as the following:

  • improving employee experience (22.7%);
  • saving time (18.4%); and
  • reducing HR's workload (18.4%).

Chart 1: Goals for HR departments

Where AI could add most value in HR

The vast majority of respondents reported that AI would be valuable either for their individual role or for their HR department. The specific areas where AI may be most valuable included administrative or repetitive tasks (74.1%), and data and analytics (58.9%).

According to XpertHR research into HR departments in 2024, approximately one-fifth (20%) of HR's time is spent on administrative tasks, and a further 5% is spent on collecting or analysing HR data. The desire for AI in these areas indicates that there is opportunity for solutions to reduce time spent on these tasks, which, in turn, could allow a significant proportion of time to be spent on alternative activities.

Chart 2: Areas where AI would be most valuable for HR employees

Involvement of HR in AI adoption

The survey asked a range of questions around HR's involvement in AI adoption at organisations, where HR teams may be supporting the wider business in regard to strategy, policies and training.

In around one-third of organisations (34.6%), HR has been involved in discussions with leadership about adoption of AI technologies. A quarter (24.3%) reported that these discussions have not involved HR and a further 29.7% stated that their organisation is either not at this stage yet with AI, or has no plans to implement any AI solutions. Around one organisation in 10 was not sure about whether these discussions had been had, or whether they had included HR.

In the UK, there are currently no laws that regulate the use of AI within workplaces. There are, however, instances where the use of AI could be unlawful. One example given in the House of Commons research briefing on AI and employment law is where due to bias within AI tools, organisations could make decisions or be influenced by information that is discriminatory, which would contravene the Equality Act 2010. For this reason, organisations may choose to develop their own principles to support the adoption of AI. The research found that just one-fifth (21.6%) of organisations have developed guidelines, principles or policies on the use of AI. Where such guidelines exist, no organisation stated that HR is solely responsible for the development of such materials. Most respondents (77.5%) indicated that HR contributes alongside other functions and at around a quarter (22.5%) of organisations, HR has no responsibility for them.

Just 20% of respondent organisations have provided training on AI to any employees. Where training either has been given, or will be given in the future, this may fall on HR to facilitate or support with the development of the training programmes.

How HR is using AI

Around half (54.1%) of respondents indicated they had used some form of AI in their work as an HR professional. Many respondents reported they have used generative AI to assist them with their role, using ChatGPT or similar to do the following tasks:

  • policy and template generation;
  • creation of job descriptions and interview questions;
  • drafting communications;
  • conducting or assisting with data analysis; and
  • producing training materials.

When exploring the benefits and challenges that have come from using AI within HR, a key advantage noted was time saving and efficiency gains. Respondents often felt that AI offered a good starting point for work, with the realistic view that AI-generated content needs manual checking and adjustments to be made, using their own expertise. One respondent stated: "It gives me a great basis to work on, but I'd never rely on it entirely. It still needs our skills to run it and to get the best from it." Of a similar sentiment, another organisation reported that: "If used properly and reviewed by an expert, it can save time and effort. However, it does get things wrong which is why it should not be relied on - yet."

The accuracy of AI outputs was noted by several respondents as a challenge, with one respondent explaining the use of AI "has proved beneficial in time saving in terms of making notes of meetings, but I have found it to be counterproductive as the transcriptions were not as accurate as I had hoped, which then involved extra time taken checking and reworking". This highlights a tricky balance that HR departments using AI are likely facing, meaning the acceptance of AI technology's limitations is key to a successful integration into existing practices.

AI is also providing additional challenges for HR departments, as some respondents document that applicants' own use of AI is making their role increasingly difficult. One respondent noted that there "have been some issues around quality of applications for job roles where candidates have generated them using AI. Poor quality applications are mainly done in this way." Another respondent explained: "We have had requests from recruiting managers to help them understand if applications are written by AI and I expect that to be a recurrent theme." This indicates that AI is having a wider impact on HR teams outside of their own or the organisation's use of the evolving technology.

In terms of the organisations as a whole, more than half (57.3%) of respondents indicated that their HR department had been using AI in some capacity; either to experiment with (49.7%) or that AI has been integrated into at least one of their HR processes (7.6%). The remaining two-fifths (42.7%) of organisations stated that their HR department has not been experimenting with AI at all.

HR employee sentiment towards AI

Despite the possibilities from embracing AI, it is clear that there are mixed feelings about the prospect of using these new technologies within HR teams, with few organisations (12.4%) reporting that they felt HR employees were excited about the potential of AI in their working lives. Comments from respondents echoed this sentiment, with one stating: "I am yet to be convinced it is at the correct stage to be used on a wider scale or to make any real efficiencies. HR relates to people practices, there will still be a need for HR people and a personal touch."

With talk about automation and the opportunities from AI, it is understandable that around one-third (30.3%) of organisations agreed that HR employees are concerned about the impact of AI on job security and headcount levels. This worry was slightly more common among smaller organisations with fewer than 1,000 employees, compared with larger organisations. One respondent believed that "AI will essentially remove the need for a lot of HR jobs, which is a real concern."

The prospect of using AI appears to be misunderstood, with one-third (32.4%) of respondents feeling that HR employees at their organisation recognise the potential of using AI and what that means for the organisation.

Chart 3: HR employee sentiment about AI in the workplace

Barriers to implementing AI into HR processes

Respondents tended to indicate that they have experienced, or would expect to experience, multiple barriers to implementing AI into HR processes, with the median number of barriers being three. The most common barrier reported was a lack of understanding about AI, reported by close to three-quarters (70.3%) of organisations. Other barriers included skills shortages (49.7%); lack of investment (44.3%); and ethical or data protection concerns (42.7%).

Chart 4: Barriers to implementing AI technologies

Our research

This report is based on original research carried out in March 2024. We received responses from 185 organisations, representing a total of 272,966 employees. The organisation breakdown by industry is as follows:

  • 46.5% (86) are in private-sector services;
  • 15.1% (28) are in manufacturing and production;
  • 18.4% (34) are in public services; and
  • 20% (37) are in not-for-profit.

Broken down by workforce size, the respondent organisations comprise:

  • 45.8% (85) having between one and 249 employees;
  • 28.6% (53) having between 250 and 999 employees; and
  • 25.4% (47) having more than 1,000 employees.