Findings from the fifth Protiviti AI Pulse Survey, “The AI-People Conundrum: Learning to Lead, Not Lag,” has revealed a gap in confidence between company executives and HR leaders regarding AI readiness within their enterprises. The research found that almost 80% of C-suite executives expect AI to boost bottom-line performance and strengthen overall revenue over the next three years. However, Chief Human Resources Officers (CHROs) carry more skepticism on whether their companies are equipped, particularly when it comes to the necessary changes to workforces.
In all, only 5% of CHROs believe that AI will be used to support at least half of all HR-related tasks within the next three years. This lack of confidence is largely due to the possible challenges faced when scaling AI into HR processes.
HR leaders question AI workforce readiness
Fran Maxwell, global leader of People & Change at Protiviti, commented on the “disconnect in the C-suite.”
“Most leaders are focused on the value AI can deliver for the business. HR leaders are focused on whether their organisations and people are actually ready to deliver it. AI can create tremendous business value, but only if organisations invest appropriately in the non-technical aspects of AI transformation, including people enablement, operating model redesign, and process redesign.”
Protiviti’s research highlighted the varying levels of confidence across the C-suite. For instance, just 13% of CHROs “strongly agree” that their enterprise’s job designs are ready for mass AI adoption, compared with 28% across the entire C-suite. Organisations would need to rethink how roles are structured, employee salaries, and career paths as AI automates and accelerates tasks. Some jobs are likely to become more focused, specialised, and require fewer people, requiring a myriad of changes by HR.
One of the key reasons why there is a divide in C-suite belief may be down to CHROs having wider visibility into workforce complexities compared to many senior executives. Being responsible for workforce strategy, talent management, and employee development, CHROS are more aware of the challenges companies face when reshaping roles for AI.
Further findings highlight this disparity in confidence, with only 14% of CHROS strongly agreeing that their organisation’s learning capabilities are AI-ready, compared to 36% overall.
82% of CHROs said they are expecting a hybrid workforce of humans and AI by 2030, somewhat lower than 93% of C-suite leaders. Of all executives, IT leaders are the most optimistic with 96% believing in their establishment’s AI readiness.
These findings do not point towards AI scepticism. Instead, they indicate a more strategic viewpoint from HR teams who can foresee the possible workforce challenges if AI was to be successfully scaled.
AI’s potential value is clear, but HR leaders see barriers to rapid adoption
Extending the theme of a confidence divide, many business leaders expect AI to add substantial value over the next three years, but, HR leaders are more cautious on the true scale of AI’s impact in this short amount of time.
Although approximately 80% of HR tasks could theoretically become automated using AI, 60% of CHROs do not expect it to be deeply embedded in HR operations within the next three years. Within the IT field, however, 88% of respondents believe more than a quarter of IT work will be powered by AI over the next three years, up from just 57% today.
Other areas that see stronger expectations for AI enablement include finance, with 72% of leaders projecting at least one quarter of work will become AI-enabled within three years, up from 23% today. Similar increases are expected in supply chain, rising to 66% from 33%, and audit, up from 20% to 56%.
Fran Maxwell spoke on HR’s central role in redesigning work so that businesses can successfully generate a return on investment with AI.
“AI transformation is ultimately a workforce transformation. Technology alone won’t determine which organisations succeed. Capturing AI’s full value will depend on leaders treating workforce transformation as a strategic priority alongside technology transformation. That starts with HR playing a leading role in shaping the roles, skills and organisational changes required to turn AI investments into business value.”
Want to learn more? Join marketing leaders at DMWF events in New York, Amsterdam, London and Singapore, exploring the latest trends in AI, digital marketing and customer experience.
Marketing Tech News, powered by DMWF Ltd, delivers the latest marketing technology news, insights and industry updates.
