Navigating the AI Adoption Landscape in HR: Insights and Challenges Revealed

Deel, a global leader in HR and payroll services, has unveiled new findings on AI's impact within HR alongside the launch of Deel AI. Their survey of 1,100 HR decision-makers sheds light on current perceptions and adoption trends. While 61% foresee AI positively influencing HR practices over the next five years, there remains a significant gap in adoption rates.

Currently, 38% of HR leaders integrate AI into their workflows, with 23% of non-users planning to adopt within the next year. However, 70% of those not using AI do not foresee its implementation soon, underscoring a reluctance to embrace new technologies.

AI is viewed as transformative across various HR domains, including analytics (46%), compliance (37%), learning and development (35%), and recruitment (29%). Larger companies, generating over $10 million in revenue, exhibit higher AI adoption rates (61%) compared to smaller enterprises (13%).

Concerns about AI reliability (16%) and data security (16%) are prominent among HR leaders, reflecting apprehensions about technological integration. Notably, 13% express concerns over AI potentially reducing the personal touch in HR interactions.

Aaron Goldsmid, Deel's head of products, payments, and integration, emphasizes the pivotal moment for HR technology: "Our research highlights a significant adoption gap, with 62% of businesses yet to embrace AI. This hesitation, particularly among smaller firms, could hinder their competitive edge in efficiency and strategic insights."