Artificial Intelligence (AI) adoption in Human Resources has been slower compared to other business functions. As per a recent study by Vlerick Business School, 59% of HR leaders report their departments are making little to no use of artificial intelligence (See Reference 1). According to a recent study, nearly one-third of HR leaders indicated that they are piloting, planning implementation, or have already implemented generative AI. But another finding from the study indicates that more than half of HR leaders stated that adding generative AI-related roles in their departments is not on the roadmap for the upcoming 12 months.
There are several factors that may contribute to slow AI adoption in Human Resources:
- Data Quality and Availability
AI requires vast amounts of high-quality data to function effectively. HR departments may struggle with inconsistent data or information, or a lack of structured data, which can hinder AI’s ability to be effective.
- Data Privacy and Security
Concerns about data privacy and security are paramount in HR, and HR departments must navigate a complex landscape of laws and regulations, adding complexity to an AI implementation.
- Lack of Expertise
HR professionals may lack the necessary technical skills to understand, implement, and manage AI-powered tools. A 2022 survey by CIPD found that only 32% of HR professionals felt confident in using digital technologies, highlighting a critical skills gap. This lack of confidence often results in underutilization of AI tools that could otherwise enhance efficiency and productivity (See Reference 2).
- Lack of Clear Use Cases
Without clearly defined business needs and measurable outcomes, it can be challenging to justify the investment in AI and demonstrate its value. Without specific examples of how AI can be integrated into daily tasks and improve outcomes, HR professionals may struggle to see the value, resist implementation, or experience low adoption rates.
How Oracle AI for HCM can help?
AI capabilities within Oracle Cloud HCM solution can significantly augment AI adoption in Human Resources by providing practical tools and solutions that demonstrate the value of AI in real-world scenarios. From smarter recruiting, personalized learning & development, advanced workforce analytics to enhanced employee experience and automation of routine tasks, Oracle AI for HCM can help organizations complete tasks in less time, make better decisions and drive better business outcomes.
Oracle AI Agents: Oracle AI Agent Studio transforms HR by bringing an agentic AI approach directly into Oracle Fusion HCM. From completing routine tasks and guiding employees through their careers to freeing HR professionals for meaningful work, AI agents can empower HR with proactive, personalized automation. Oracle AI Agents can orchestrate and execute tasks autonomously, acting. like proactive colleagues focused on execution, not just reactive assistants.
AI Agents are embedded and can be enabled to help across all areas of the Oracle Cloud HCM suite–HR, Talent Management, Payroll, Workforce Management, and Employee Experience–assisting organizations in recruiting top talent, upskilling their workforce, driving better performance across all stages of the employee lifecycle. See Reference 3 for Oracle AI Agents for HCM.
Key Benefits of AI Agents for Human Resources:
- Efficiency & Focus: Automate routine tasks like answering leave queries or scheduling onboarding, so HR professionals can focus on strategic, human-centric work.
- Consistency: Follow defined logic, policies, and templates, helping to provide consistent experiences.
- Personalized Employee Engagement: Tailored career recommendations, benefits guidance, and onboarding journeys make employees feel supported.
- Trust Built-In: Includes testing and validation to assess controls for deployment.
- Scalability: From small initiatives like leave queries to orchestrating complex multi-agent HR workflows, everything grows with the team.
- Human-in-the-Loop Where Needed: Build approvals and checkpoints—agents manage what they’re trusted with and escalate the rest.
Oracle AI Agent Studio can be considered a game changer for Human Resources. Its potential is significant, especially for organizations already using Oracle Fusion Cloud HCM, but its impact depends on thoughtful implementation, change management, and the maturity of the organization’s HR processes.
AI capabilities within Oracle Fusion Cloud HCM can significantly boost AI adoption in Human Resources, but overall success goes beyond technology alone. Factors like user experience, perceived value, organizational culture, and focus on change management have a crucial role to play in successful adoption of AI in Human Resources function. It requires a holistic approach that combines technologically advanced HCM systems with a strategic focus on people-centric business objectives and human oversight.
Oracle Consulting can help you harness the power of artificial intelligence. Whether you’re integrating AI into an existing solution or want to incorporate AI from the start of your cloud implementation, Oracle Consulting has you covered.
References:
1. AI adoption remains limited across HR
2. Barriers to AI adoption in HR departments
3. Oracle AI Agents