AUGUST 20, 2024
At Evanta, a Gartner company, we regularly survey our C-level community members about trending business topics, and recently, we conducted a Community Pulse Survey on AI Adoption. In the survey, over 250 CHROs shared their organization’s approach to AI, critical concerns and overall sentiments about its future impact.
AI is the way of the future. We need to keep learning, testing, and embracing AI.”
- CHRO community member
For many CHROs, the AI conversation has been elevated from one of general interest and exploration to how it can be implemented to achieve measurable results. An increase in AI and generative AI technologies present more opportunities for efficiency gains; however, HR leaders are trying to balance the “hype” of AI against realistic expectations.
CHROs are being thoughtful about how and when to utilize AI, and they are slower to adopt AI than their peers across the C-suite. Three-quarters of C-level executives say they have started their AI adoption journey, and comparatively, 60% of CHROs are piloting AI projects or implementing AI in their business processes.
As we analyzed the results of the survey further, it is evident that five key themes are informing CHROs’ AI strategies. Here, we are unpacking each theme:
1. A Growing Enthusiasm for AI in HR
Almost 90% of CHROs have a positive outlook on AI, seeing it as a transformative tool that can drive efficiencies, innovation and better decision-making. In addition, they are excited about the potential for AI to revolutionize business processes and enhance productivity. Twelve percent of HR leaders said they are neutral on this matter, and it is significant only 1% of respondents acknowledged having a “somewhat negative” view of AI.
In the survey, we asked an open-ended question about their sentiments toward AI, and one CHRO commented, "I’m extremely optimistic about the impact [AI] will have on our business and how we execute on our talent and engagement strategy."
Another HR leader shared, “Very optimistic! I think it will change our business in ways we couldn't even imagine one year ago. I’m also optimistic that it will create more jobs in the long run.”
2. Cautious Optimism, with Substantial Security Concerns
While optimistic, many HR leaders also emphasize the need for caution. They highlight concerns about data privacy, security risks, and the need for proper governance to ensure AI is used accurately, ethically and effectively.
It is noteworthy CHROs are more concerned about these issues now than in 2023, as we asked CHROs the same question in our 2023 survey on the introduction of generative AI. For example, 74% of CHROs are concerned if they can deploy AI securely today, while only 22% of CHROs were concerned about security risks last year. This change is presumptively due to increased testing and understanding of AI capabilities, but it is encouraging to see CHROs still have a positive outlook on AI, despite their concerns.
In the comments, the importance of responsible AI implementation was a key theme. One CHRO detailed how they are managing the risks, saying, “We have a realistic set of concerns related to AI which, includes things such as data privacy, biased modeling, unclear legal regulation, hacking and other potential malicious uses. We are proceeding carefully in close partnership with our legal and compliance teams, as we want to ensure we are examining the potential risks of each AI use case.”
Another HR leader simply commented, “I think it will be revolutionary, I just don't know whether the net gain will be worth the negatives that will come with it.”
3. A Focus on Continuous Learning and Change Management
There is a strong recognition from CHROs that they need to continuously learn, test, and adapt their AI strategies. HR leaders acknowledge AI is evolving rapidly, and they must keep up to leverage its full potential while addressing the challenges it brings.
This is a big change management issue, even more than a technology implementation issue.”
- CHRO community member
In their survey responses, some CHROs expressed feeling overwhelmed by continuous AI advancements and how it is posing change management challenges. Others mentioned how it is making it difficult to create and deploy necessary employee development and upskilling opportunities.
One HR leader shared, “It can feel like AI is evolving ahead of us, and we are not side-by-side with understanding and scoping the opportunities. We need to upskill our leaders to be able to lead in this space.” Another remarked, “I am concerned about the lack of knowledge at the employee level. I believe it is evolving so quickly that we are lagging behind.”
4. Balancing Human and AI Capabilities
Many CHROs see AI as a complement to the workforce, emphasizing it should not replace human judgment, but rather enhance it. They stress the importance of balancing AI-driven automation with human oversight and creativity, and that AI “should not solely be relied upon.”
One CHRO commented, “There is a huge opportunity when AI is combined with human intelligence to drive better and faster decision making and outcomes.” Another shared, “We need to strike a balance on ‘human thought’ versus ‘AI thought’ in our work.”
5. Strategic Implementation and Governance
Effective implementation and governance are also recurring themes. As one CHRO said, “HR is serving as the governance holder of AI.” Many CHROs highlighted the importance of enacting clear policies, procedures, and controls to manage AI's deployment and ensure it aligns with business objectives and ethical standards.
One CHRO noted, “It can be a powerful tool that can help with data insights and leverage product efficiencies, but it must have governance to ensure it is used correctly.” Another HR leader shared, “It's a fantastic tool once the organization has a governance structure on how to use it.”
These five themes capture the overall sentiment of HR leaders towards AI, reflecting a mix of excitement, caution, and a strategic approach to its adoption and implementation. Here are some comments from CHROs that illustrate these themes:
Realization has hit the executive team that we must be prepared to jump in, but we have concerns on a number of fronts.”
I am anxious to learn more and deploy as many use cases as possible to drive a more efficient HR organization and to optimize employee productivity. However, I need to personally become more comfortable with options to do so.”
I am an avid though thoughtful proponent. I believe AI is a force multiplier and can help level many people up and out of administrative tasks to work on more strategic tasks.”
For the complete findings from our recent CHRO survey on AI adoption, check out our infographic.
If you are an HR leader navigating the implementation of AI, join an Evanta community to engage with your peers on this topic. Or, if you are already a CHRO community member, check out MyEvanta to view upcoming opportunities to discuss AI adoption in person and virtually with your peers.
by CHROs, for CHROs
Join the conversation with peers in your local CHRO community.
