HR Leaders Use Gen AI to Boost Human Capital

New data shows 66% of HR teams use generative AI, but scaling is critical to transform service delivery, productivity and competitiveness.

The Hackett Group, a leading Gen AI strategic consultancy and executive advisory firm, announced findings from its 2025 Key Issues Study, revealing that human resources leaders are rapidly adopting generative AI (Gen AI) to advance human capital objectives. Sixty-six percent of human resources (HR) organizations are already using AI-powered tools in some capacity. Yet, HR workloads are set to rise by 10% in 2025 while budgets shrink by 1.5% and headcounts decline by 2%, creating a 12% productivity gap. AI-driven automation will be critical to closing this divide.

HR workloads are set to rise by 10% in 2025 while budgets shrink by 1.5% and headcounts decline by 2%, creating a 12% productivity gap. AI-driven automation will be critical to closing this divide.

“Gen AI is not merely an option, it’s a strategic imperative for HR leaders looking to reimagine work and drive breakthrough business results,” said Jessica Haley, principal, Global Human Resources Executive Advisory Practice Leader at The Hackett Group. “Our research shows that by embracing AI, HR can transform service delivery and unlock significant competitive advantages.” HR Technology Insights: Kura Labs & ServiceNow Partner for Engineering Training

Where HR is deploying AI now – and where it’s headed

The Hackett Group’s research underscores the intention of HR teams to scale Gen AI adoption beyond initial learnings and pilots. Top areas in which organizations are poised for Gen AI expansion in 2025 include:

• Talent acquisition – 52% use AI to write job descriptions, 39% have plans to implement it for resume screening.
• Employee communications – 48% leverage AI to draft employee communications.
• HR service delivery – 45% plan to leverage AI to answer common HR-related questions.
• Learning and development – 29% plan to use AI for skills documentation and training assessments.

The HR mandate for 2025: Drive AI-led productivity gains

The productivity increases and capacity gains from shifting such work to Gen AI will allow HR organizations to bridge the growing productivity gap and open up additional capacity to focus on their top objectives for 2025. In fact, about three-quarters (77%) of HR organizations have an initiative to leverage technology to improve the efficiency and effectiveness of HR services. Overall, HR leaders anticipate a 4.2% year-over-year increase in automation. To accelerate Gen AI efforts, reimagine work and the workforce, and drive transformative value, The Hackett Group recommends:

• Ruthlessly prioritizing improvement projects based on importance, value, time to benefit and opportunity cost.
• Investing in reskilling/upskilling HR team members, including data and AI literacy, to ensure readiness for organizational and job redesign.
• Simplifying process and technology complexities that can stall progress.
• Leading the reimagining and redesigning of talent management strategies.

AI can’t wait – neither can HR

HR leaders who move decisively on AI adoption will gain a critical competitive edge in workforce management, employee engagement and enterprise productivity. HR Technology Insights: UKG Ready Suite Now Available for Canadian Organizations To participate in our interviews, please write to our HRTech Media Room at sudipto@intentamplify.com Source: Businesswire