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While most HR executives agree that AI will radically changehow work gets done, few are deep into leveraging the novel technology, according to a new report from ServiceNow, published today.
Just 14% of all CHROs are in the advanced stages of “digital transformation,” defined as implementing digitalization across their organization and seeing significant performance improvements, according to the report, based on a survey of more than 1,200 HR executives in North America, Europe, and Asia, conducted earlier this year. Another 14% said they were in the beginning stages of digital transformation and the remaining 73% said they were in the intermediate stages.
CHROs at companies in those advanced stages of transformation, called “innovators” in the report, are a lot more likely to be using AI technology. Around 70% of these top CHROs are currently using traditional AI tools and 65% are using generative AI tools, compared to just 29% of HR leaders from organizations in the beginning stages. Top CHROs are applying AI to a wide range of uses, including call center support, chatbots, improved search results on internal company platforms, data security and privacy, and content generalization and summarization.
HR involvement with AI means the function has a big opportunity to align talent strategy with the business, including ensuring workers understand the technology, and how to use it, Brandon Roberts, ServiceNow’s group vice president of people analytics and AI, tells Fortune.
“Organizations need to realize that this isn’t going away,” says Roberts. ”There is not an organization in the world that’s not investing in AI. The CHRO has this opportunity to play a really crucial role in that transformation, both in terms of the implementation within their organization, but also in setting up the organization to be successful for the implementation of AI in sales, engineering, or whatever function.”
Around 88% of “innovator” CHROs say HR and business strategy are considerably or very well aligned, compared to just 33% of HR leaders at beginner organizations. Around 34% of these top CHROs are becoming strategic partners with the CEO, compared to just 17% at beginner organizations. And 47% of top CHROs are partnering with other C-suite leaders, versus 31% from beginner organizations.
Roberts says HR leaders at companies behind the curve on digital transformation should start by taking a close look at what they want their first steps to be with AI adoption, consider the return-on-investment their organization wants from AI technology, and ensure their own staff gets educated about the technology.
“You have to be implementing AI to be successful as an organization,” he says.
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Today’s edition was curated by Emma Burleigh.
Around the Table
A round-up of the most important HR headlines.
- Tesla has already laid off 14% of its workforce this year following a considerable downsizing in 2023, and anticipates shedding even more staffers. CNBC
- Target is rolling out an AI chatbot across 400 stores to answer questions when assisting shoppers, in order to give workers the “confidence to serve our guests.” New York Times
- Food services company Aramark has been employing Florida prisoners to manufacture meals for other inmates, but none have been paid for their work. The Guardian
- Cyberattacks have surged against the U.S. government and top companies, changing the cybersecurity job market and pushing more Gen Zers to pursue the career in school. Washington Post
Watercooler
Everything you need to know from Fortune.
Holding out. Despite tech company Dell enforcing a policy that bars remote workers from promotions, almost half of employees continue to work from home. —Sasha Rogelberg
Disengaged. Globally one in five people between the ages of 15 and 24 aren’t employed, in school, or training, fueling new records of youth unemployment. —Orianna Rosa Royle
Perception gap. Corporate executives and employees are divided—90% of leaders say working for their company positively impacts their well-being, while only 60% of staffers agree. —Beth Greenfield
