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Nov 19, 2024, 12:51 ET
Companies can save an average of 15-20% in HR labor time through AI automation and augmentation
BOSTON, Nov. 19, 2024 /PRNewswire/ — The transformative impact of generative AI on the HR profession could lead to a more human touch, in addition to lower costs, according to a new study by global consultancy Bain & Company.
The study suggests that selecting the right roles for automation and AI interventions could, on average, save around 15-20% in HR labor time. According to Bain’s Generative AI Workforce Impact Explorer tool, HR business partners could save up to 15% of employee time through AI; talent acquisition teams can save up to 20%; and HR operations teams up to 35%.
“HR is at a critical juncture. The function is under pressure to become both more cost efficient and more strategic. That is a challenging balance to strike,” said John Hazan, a partner at Bain & Company and global head of the firm’s Talent solution. “Generative AI has the power to elevate HR’s role in the organization, from transactional operators to strategic advisers. Our analysis suggests a typical company could save, on average, up to 20% in HR labor time through AI automation and augmentation.”
According to Bain, HR leaders will be able to reinvent their teams’ structure and skills once transactional processes are streamlined through technology. In so doing, specialist HR advisers will become innovation hubs; HR business partners will become advisers to the business and designers of workplace culture; and operational teams will become analysts.
“Adopting generative AI is more than an operational upgrade. It’s a strategic leap forward for the HR function that will unlock new levels of efficiency, innovation, and value,” said Susan Gunn, a partner at Bain & Company and global head of the firm’s Human Resources product solution. “We used Bain’s Generative AI Workforce Impact Explorer tool, which enables practitioners to model strategic change through the use of generative AI, to quantify what this could mean for HR departments. The results show just how game changing generative AI will be for HR practitioners.”
Specific role-related enhancements possible through AI implementation in HR include:
Talent acquisition teams
- Drafting job postings and filtering CVs
- Scraping and matching databases and resumés
- Scheduling interviews, answering simple questions
- Real time interview analysis
- Identifying and rectifying the potential for bias
HR business partnering
- Retrieving external and internal information on HR trends and needs
- Employee engagement summaries and action plans
- Developing skills-based workforce planning
- Quality check performance reviews
HR data analysis
- Quality check, analyse and update HR data
- Generating reports on predefined metrics
- Process survey data, identifying trends and sentiment
- Respond to requests for data insights
- Review and fine tune data dashboards
Media contacts
To arrange an interview or for any questions, please contact:
Gary Duncan (London) — Email: gary.duncan@bain.com
Katie Ware (New York) — Email: katie.ware@bain.com
Ann Lee (Singapore) — Email: ann.lee@bain.com
About Bain & Company
Bain & Company is a global consultancy that helps the world’s most ambitious change makers define the future.
Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a gold rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 2% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.
SOURCE Bain & Company