Insights from Engagedly’s State of AI in HRM, 2nd Edition Survey

In recent years, Artificial Intelligence (AI) has made significant strides, transforming industries and ushering in an era of unprecedented efficiency and innovation. From healthcare to finance, AI’s applications have been far-reaching, and one sector where its impact is particularly noteworthy is Human Resource Management (HRM). As organizations strive to navigate an era of digitization, the integration of AI in HRM has become a focal point, promising to revolutionize how businesses manage their workforce.

This second edition of our research seeks to delve deeper into the dynamic intersection of AI and HRM, exploring the perspectives of global HR leaders and their experiences with AI adoption. The study aims to provide a comprehensive understanding of AI’s role in reshaping HR functions, unveiling insights beyond mere trends to offer actionable knowledge for organizations striving to stay ahead in this technological wave.

The purpose of this research is multifaceted. Firstly, it aims to shed light on the current state of AI integration in HRM, showcasing the prevalent trends and challenges organizations face. Secondly, it seeks to unravel how AI facilitates efficiency, data-driven decision-making, and personalization within HR practices. By doing so, the research strives to equip organizations with valuable insights into the strategic implementation of AI, helping them harness its potential to drive innovation and elevate workforce management.

As we explore AI’s impact on HRM, it becomes evident that the fusion of artificial intelligence with human resources is not merely a technological trend but a transformative journey that holds the promise of enhancing organizational effectiveness and unlocking new possibilities for talent management.

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Table of Contents

Table of Contents

Executive Summary

AI has the potential to revolutionize human capabilities, and HR teams have a pivotal role in ensuring fairness and an ethical approach to AI within organizations. Indeed, in the strategy to maximize productivity with AI, CEOs and leaders must not only involve HR teams in the process but also make them an integral part of the leadership.”

Srikant Chellappa
CEO/Co-Founder, Engagedly

This research provides insight into the perspectives of global HR leaders on AI in HRM, revealing widespread optimism about its potential to revolutionize HR functions. HR leaders recognize AI’s proficiency in enhancing efficiency, streamlining processes, and offering actionable insights, envisioning a future where AI plays a pivotal role in data-driven decision-making.

Additionally, the study explores the transformative potential of Generative AI, a cutting-edge technology set to redefine content creation. With its capacity to generate novel, human-like content, Generative AI opens new possibilities for HR practices, holding promise for automating tasks and fostering innovation within HR. The research stresses the importance of understanding Generative AI’s capabilities and implications, advocating for a responsible approach to its adoption.

The study addresses challenges, highlighting the intricacies of integrating AI with existing HR processes, the significance of overcoming organizational resistance, and the need for a nuanced approach to change management. Measuring AI’s return on investment involves assessing enhanced efficiency, decision-making, productivity, streamlined processes, and cost savings.

As organizations embrace AI’s transformative potential, a shift towards efficiency, data-driven decisions, and personalization emerges. However, this evolution prompts consideration of job displacement, a concern actively addressed by forward-thinking organizations investing in reskilling and upskilling initiatives.

The study underscores the strategic importance of preparing HR for the AI revolution, emphasizing the need for a balanced approach that leverages AI’s benefits while addressing associated challenges.

Leveraging AI in HR Processes: Efficiency and Impact

Global HR Leaders Embrace AI in HRM

How do you perceive the integration of AI technologies into traditional HR Processes?
Figure 1 *Percentages do not add up to 100 due to rounding off

As organizations increasingly embrace AI, understanding how professionals perceive the integration of these technologies into traditional HR processes is crucial. Our research found an overwhelmingly positive response, with 89% of participants expressing a favorable view, suggesting collective recognition of AI’s ability to enhance efficiency, accuracy, and decision-making within HR operations. The positive sentiment may stem from observed improvements in HR functions and processes.

A notable 11% who expressed a neutral stance on AI integration into traditional HR processes may indicate a segment of respondents adopting a cautious or observant position, reflecting a reserved perspective due to the ongoing evolution and implementation of AI technologies in traditional HR processes.

Navigating the Complexities of AI-Driven HRM Transition

Has your organization employed any processes to facilitate a smooth transition to AI-driven HRM practices?
Figure 2 *Percentages do not add up to 100 due to rounding off

As organizations increasingly adopt AI into HRM, it’s crucial to prioritize smooth transition practices that align with the evolving workplace technology landscape. When questioned about their approach to transition processes, an overwhelming 88% of respondents assertively confirmed implementing strategies for a seamless shift to AI-driven HRM practices. This strong endorsement highlights organizations’ proactive approach, emphasizing their acknowledgment of the crucial need for effective strategies in navigating the complexities of integrating AI into HRM.

While a minority of 10% indicates that their organizations have not employed specific processes for this transition, exploring the reasons behind this choice becomes essential. Possible factors may include a delayed adoption strategy, limited resources, or a perceived readiness to embrace AI without formal transitional processes.

AI-Powered Recruitment: Attracting and Selecting Top Talent

How Does Generative AI Impact Recruitment and Selection Processes?

Does Generative AI help streamline and enhance your organization’s recruitment and selection processes?
Strongly Disagree
Strongly Agree
Figure 3 *Percentages do not add up to 100 due to rounding off

Generative Artificial Intelligence (AI) represents a transformative technological frontier, enabling systems to autonomously create content by learning from data. In the realm of HRM, Generative AI shows great potential to reshape processes, promising automation, improved decision-making, and enhanced operational efficiency.

To further investigate its impact on the recruitment and selection processes, we asked industry leaders to share their insights.

The findings revealed a strikingly positive outlook among respondents towards incorporating Generative AI into hiring practices. A substantial 97% of participants either agreed or strongly agreed that Generative AI effectively streamlines and enhances recruitment and selection processes. This indicates widespread optimism and strategic utilization of AI in recruiting candidates.

While a minority expressed neutrality or dissent (3%), the overwhelmingly positive response suggests a potential long-term industry adoption of Generative AI. The data is a valuable benchmark, encouraging organizations to consider the technology for competitive advantage and alignment with industry practices.

The Role of AI in Fair Hiring Practices

In the dynamic landscape of today’s job market, characterized by skill shortages and evolving industry demands, hiring suitable candidates has become an intricate challenge for organizations. Compounding this challenge is the pervasive issue of bias, which obstructs the pursuit of diversity, equity, and inclusion within the workforce. As HR professionals grapple with these complexities, the integration of AI emerges as a promising solution.

Does AI assist in identifying suitable candidates and reducing bias in hiring decisions?
Strongly Disagree
Strongly Agree
Figure 4 *Percentages do not add up to 100 due to rounding off

When asked about the role of  AI in identifying suitable candidates and reducing bias in hiring decisions, we found an overwhelmingly positive perception among HR professionals regarding its effectiveness in making hiring decisions.

A substantial 94% of respondents agree or strongly agree with the statement, indicating a widespread belief in AI’s pivotal role. Skepticism is minimal, with only 1% expressing disagreement and 5% remaining neutral about AI’s scope. The data suggests a readiness within the HR community to adopt AI, emphasizing the need for education and training to maximize benefits and foster successful implementation. Overall, the findings highlight the potential of AI to enhance HR practices and contribute to fairer and more efficient hiring processes.

Exploring AI's Role in Candidates’ Cultural Fit Evaluation

Assessing candidates for cultural fit is paramount to fostering a harmonious and productive work environment. The alignment between an individual’s values, beliefs, and organizational culture can significantly impact team dynamics and overall organizational success. To understand this, we investigated the perceptions of industry professionals regarding the effectiveness of AI algorithms in evaluating candidates for cultural fit within their organizations.

To what extent do you believe Al algorithms effectively assess candidates for cultural fit in your organization?
Strongly Ineffective
Strongly Effective
Figure 5 *Percentages do not add up to 100 due to rounding off

The research revealed a robust positive sentiment among respondents, with an overwhelming 90% expressing confidence in the efficacy of AI algorithms for assessing cultural fit. Specifically, 47% of participants strongly believe in the effectiveness of AI, while an additional 43% find it effective.

This resounding support underscores a shifting trend towards recognizing AI as a valuable tool in facilitating successful cultural fit assessments during the hiring process. Although a minority (10%) expressed reservations or neutrality, suggesting further improvements in AI to assess candidates, the overall inclination towards embracing AI technology highlights its increasing importance in HRM practices. These insights signify that organizations are increasingly turning to AI to ensure a cohesive and culturally aligned workforce, emphasizing the pivotal role technology plays in enhancing the hiring process and overall organizational success.

Optimizing Onboarding & Training with AI: Faster Integration & Development

Transforming Employee Onboarding for Greater Impact

Effective employee onboarding is a critical component of organizational success, influencing the initial experience of new hires and setting the tone for their tenure.

When survey respondents were asked about the role of AI in employee onboarding, they demonstrated a favorable perspective, with a combined 91% expressing confidence in the effectiveness of AI in contributing to more fruitful employee onboarding experiences.

Does Al contribute to more effective employee onboarding experiences?
Very Ineffective
Very Effective
Figure 6 *Percentages do not add up to 100 due to rounding off

Specifically, 51% of participants rated AI as “Very Effective,” emphasizing a strong consensus on the potential of AI to elevate the onboarding process, and a minority (9% combining Neutral, Ineffective, and Very Ineffective categories) expressed reservations or neutrality.

These insights suggest a promising trajectory for the integration of AI in HRM practices, particularly for employee onboarding. Organizations appear to be increasingly recognizing the value of AI as a tool to facilitate smoother transitions for new employees, thereby fostering quicker integration and potentially leading to heightened satisfaction and improved overall onboarding outcomes.

The Impact of Generative AI on New Hire Training Programs

Effective training programs for new hires are crucial for organizations aiming to facilitate seamless integration of employees into their roles, and Generative AI is emerging as a game-changer in this context. We asked HR professionals for their perspectives on the extent to which Generative AI enhances training programs to meet the needs of new hires.

Does Generative Al enhance training programs to meet the needs of new hires?
Not at All
To a small extent
Figure7 *Percentages do not add up to 100 due to rounding off

The responses obtained offer compelling insights into the perceived impact of AI on training programs. Notably, 88% of participants (combining Moderately, Significantly, and Completely categories) acknowledge the positive influence of Generative AI in enhancing training initiatives. This suggests that organizations incorporating Generative AI into their training strategies may witness a notable improvement in preparing new hires for their roles. Further, the absence of respondents reporting “Not at all” and the low percentage in the “To a small extent” category highlight the prevailing belief that Generative AI contributes significantly to meeting the training needs of new hires.

These findings underscore the importance of exploring and adopting Generative AI as a valuable tool in HRM, specifically in the realm of new hire training programs. As organizations strive to enhance the efficiency of onboarding processes, the integration of Generative AI appears to be a promising avenue for achieving this goal.

Data-Driven Performance Management with AI: Empowering Effective Decisions

Leveraging Generative AI for Performance Management Processes

The integration of Generative AI in performance management has been a topic of interest, with the potential to revolutionize how organizations assess and optimize employee performance. To explore this further, we asked industry leaders about the impact of Generative AI on performance management processes.

Does Generative Al help optimize performance management processes?
Very Ineffective
Very Effective
Figure 8 *Percentages do not add up to 100 due to rounding off

The majority of participants, a compelling 90% (combining Effective and Very Effective categories), recognize the positive influence of Generative AI as a valuable tool in refining performance management processes. This suggests that organizations leveraging Generative AI may experience improvements in precision and efficiency in performance management.

While a minority expresses a neutral stance (7%), the overall positive sentiment indicates a promising outlook for the integration of Generative AI in performance management within the HRM landscape.

AI-Driven Performance Evaluation and Goal Setting

Do Al-driven insights contribute to more accurate performance evaluations and goal-setting?
Strongly Disagree
Strongly Agree
Figure 9 *Percentages do not add up to 100 due to rounding off

In the context of performance assessments and goal alignment, AI has emerged as a promising tool to enhance accuracy and objectivity. The findings from respondent feedback indicate a strong and widespread positive sentiment, with an impressive 92% (combining Agree and Strongly Agree categories) of participants recognizing the significant contribution of AI in achieving more precise and objective evaluations. The findings align with the evolving landscape of HR practices, emphasizing the role of technology in promoting precision and fairness in performance-related processes.

With a minority of 7% expressing dissent and neutrality about AI role in performance evaluation and goal-setting, the overall findings advocate for the strategic integration of AI in HRM practices to foster more data-driven and objective decision-making in performance management.

AI for Learning & Development: Personalized Growth for Every Employee

Fueling Employee Development with AI

Learning and development (L&D) play a pivotal role in fostering employee growth, skill enhancement, and overall organizational success. As organizations embrace AI to enhance their L&D programs, understanding its perceived effectiveness is crucial.

To what extent have Al-enhanced learning and development programs impacted employees?
Minimal Impact
Some Impact
Moderate Impact
Significant Impact
Transformative Impact
Figure 10*Percentages do not add up to 100 due to rounding off

When inquired about the impact of AI-enhanced L&D on employees, 85% of respondents (combining significant and transformative categories) expressed a favorable outlook. This positive sentiment suggests that organizations leveraging AI in their L&D strategies may witness considerable improvements in employee skill development, knowledge retention, and overall professional growth.

The 14% who selected “Some/Moderate Impact” indicate a nuanced view that AI contributes positively to L&D, but the effects may be more subtle, context-dependent, or moderately influential. These respondents possibly recognize AI’s role in enhancing learning and development but might not perceive the impact as uniformly significant or transformative across all aspects.

Navigating the Workforce Future: AI's Role in Planning, Retention, and Personalization

The Integration of AI for Comprehensive Workforce Planning

In the face of business uncertainties and market fluctuations, the significance of HRM in strategic workforce planning has grown exponentially. To delve into the impact and efficacy of AI in shaping workforce planning strategies, we sought valuable insights from our respondents.

Has Al contributed to effective workforce planning in your organization?
Not at All
To a small extent
Figure 11*Percentages do not add up to 100 due to rounding off

The significant percentage of respondents indicating “Completely” (48%) and “Significantly” (37%) underscores a widespread acknowledgment that AI has become an integral tool in shaping and enhancing workforce planning strategies. This outlook aligns with the growing recognition of AI’s ability to provide valuable insights and facilitate more informed decision-making in HRM.

13% of respondents (“To a small extent” (1%) and “Moderately” (12%)) likely perceive a limited impact of AI on workforce planning in their organizations. This may indicate that while AI is present and contributing to some extent, its integration or utilization may not have fully optimized workforce planning processes, and there might be room for further enhancement or refinement in the application of AI technologies.

How AI Influences Talent Retention in a Digital World?

As talent retention becomes increasingly vital to sustaining competitive advantage, the integration of AI into employee retention strategies has gained prominence. We investigated this with our survey respondents and found that 79% (combining Significant and Transformational Contribution categories) recognized AI’s substantial impact on employee retention.

Has Al contributed to employee retention strategies in your organization?
Limited Contribution
Some Contribution
Moderate Contribution
Significant Contribution
Transformational Contribution
Figure 12*Percentages do not add up to 100 due to rounding off

The other 13% cited a moderate contribution, showcasing a middle-ground perception, acknowledging AI’s involvement but perhaps with room for further optimization in contributing to employee retention initiatives.

Overall, the findings advocate for the continued exploration and strategic integration of AI in HRM practices, emphasizing its potential to influence and transform employee retention strategies significantly, ensuring organizations are well-equipped to retain and nurture their key talent in the dynamic and competitive modern workplace.

AI Shaping Tailored Employee Experiences

Influencing every aspect of an organization, including employee experience, Generative AI has become a pivotal force in fostering a positive workplace culture by shaping every interaction an employee has within the organization. Its impact on employee experience is significant, as indicated by our research.

To what extent do you believe Generative Al can contribute to personalized employee experiences?
Very Low
Very High
Figure 13*Percentages do not add up to 100 due to rounding off

77% of HR professionals (combining High and Very High categories) acknowledge the potential of Generative AI to contribute substantially to personalized employee experiences. This insight resonates with the increasing focus on harnessing technology to customize organizational practices according to individual employees’ distinct needs and preferences.

Notably, 19% of respondents selected “Moderate” impact on personalized employee experiences with Generative AI. We believe it is because of the cautious optimism or uncertainty about the technology’s full potential and implementation challenges in achieving highly personalized interactions.

The results strongly support the proposition that exploring and purposefully integrating Generative AI in HRM can cultivate more personalized and meaningful interactions, thereby fostering a positive and inclusive organizational culture.

Exploring AI’s Impact on Employee Lifecycle

The concept of personalization through AI has emerged as a transformative force, reshaping various facets of the employee lifecycle. To understand this aspect, we asked respondents to select specific areas within the employee lifecycle where personalization through AI is particularly impactful.

Are there specific areas within the employee lifecycle where personalization through Al is particularly impactful? (Select all that apply.)
Recruitment and Onboarding
Training and Development
Performance Management
Employee Engagement and Feedback
Career Development and Advancement
Rewards and Recognition Programs
Figure 14*Percentages do not add up to 100 due to rounding off
The research revealed the following insights:

Training and Development: The highest percentage of respondents recognize the profound impact of AI-driven personalization in training and development. This suggests a widespread acknowledgment of AI’s potential to tailor learning experiences, foster individual skill enhancement, and address unique development needs.

Employee Engagement and Feedback: Following closely, a significant majority acknowledge the influence of AI in personalizing employee engagement initiatives and feedback mechanisms. This indicates a keen awareness of AI’s role in cultivating a more personalized and responsive work environment.

Recruitment and Onboarding: Almost on par with employee engagement, respondents emphasize the impact of AI in the crucial stages of recruitment and onboarding. This recognition suggests a strategic focus on using AI to streamline hiring processes and enhance the onboarding experience.

Performance Management: While slightly lower, a substantial percentage still acknowledges the impact of AI in personalizing performance management processes. This highlights the growing recognition of AI’s role in providing tailored assessments and feedback.

Career Development and Advancement: Similarly, a considerable portion recognizes the impact of AI in personalizing career development paths and aligning individual aspirations with organizational growth. This indicates a growing awareness of AI’s role in shaping personalized career trajectories.

Rewards and Recognition Programs: While slightly less emphasized, a significant percentage recognizes the impact of AI in personalizing rewards and recognition programs. This suggests a growing understanding of AI’s role in tailoring incentives to individual preferences and achievements.

Boost Engagement & Productivity with AI: Empowering a Thriving Workforce

How Does AI Influence Employee Engagement?

Employee engagement, a critical facet of organizational success, reflects the emotional commitment and connection employees have with their work and the company. In rapidly evolving global workplaces, the integration of AI has become a focal point, raising questions about its impact on overall employee engagement levels.

How has integrating Al impacted your organization's overall employee engagement levels?
Negative Impact
No Impact
Slight Positive Impact
Moderate Positive Impact
Significant Positive Impact
Figure 15*Percentages do not add up to 100 due to rounding off

Our research found that 89% (combining moderate positive impact and significant positive impact categories) of HR professionals are positive about the influence of AI on employee engagement. The insights align with the potential of AI to streamline processes, enhance communication, and create more enriching work experiences.

A minor 8% who suggested a slight positive impact may indicate recognition of AI’s positive influence on employee engagement, albeit with minor improvements. This suggests a need for further optimization or specific adjustments in the implementation of AI initiatives.

AI's Role in Augmenting HR Team Productivity

As organizations increasingly adopt AI solutions, understanding how these technologies influence HR team productivity becomes paramount. To investigate this further, we asked survey respondents to share their views on the impact of AI on the overall productivity of their HR teams.

How has Al impacted the overall productivity of your HR teams?
Significantly Decreased
Slightly Decreased
No significant Impact
Slightly Increased
Significantly Increased
Figure 16*Percentages do not add up to 100 due to rounding off

48% of respondents stated a significant increase in HR team productivity, possibly attributed to AI streamlining processes, automating repetitive tasks, and improving decision-making.

An additional 42% reported a slight positive increase in productivity, implying that although AI adoption played a role in enhancing productivity, the degree of transformation may not be as profound as observed in the significantly increased group.

A minor 9% of respondents indicated that there was no notable impact on HR team productivity, suggesting potential challenges, variations in implementation, or limited effectiveness in specific AI application contexts.

Frontline Empowerment: Bridging the Gap with AI

Integrating AI into Frontline Operations

As frontline employees play a pivotal role in organizational operations, the integration of evolving technologies, particularly AI, into their daily work routines becomes a crucial consideration. Our research found that a significant majority of HR leaders (84%) express a positive perception of AI integration into the daily work routines of frontline employees. This robust positivity suggests a widespread recognition of the benefits AI brings, potentially enhancing the operational efficiency of frontline teams.

How do your frontline employees perceive the integration of Al technologies into their daily work routines?
Not sure
Figure 17*Percentages do not add up to 100 due to rounding off

A noteworthy proportion of respondents (11%) showed a neutral stance towards AI’s integration. This could stem from a lack of clear visibility into the immediate impact, a preference for a gradual adoption approach, or a need for further clarification on the role and benefits of AI in their specific work context.

While a minority (5%) expressed negative perceptions, the overwhelmingly positive response underscores the potential for AI to be perceived as an asset rather than a disruption in frontline workers’ daily work routines.

AI's Transformative Impact on Frontline’s Workflow Efficiency

AI is transforming frontline operations, ushering in a new era of efficiency. As organizations embrace AI, the impact on the workflow efficiency of frontline employees becomes increasingly pronounced. The insights collected from respondents reveal a spectrum of impactful outcomes resulting from the integration of AI technologies into the workflow of frontline employees.

How has integrating Al impacted workflow efficiency for frontline employees? (Select all that apply.)
Streamlined Processes
Improved Task Accuracy
Enhanced Collaboration
Time Savings
Reduced Manual Errors
Figure 18*Percentages do not add up to 100 due to rounding off

Improved Task Accuracy: The highest percentage of respondents highlight the substantial impact of AI on enhancing task accuracy, emphasizing its crucial role in minimizing errors and ensuring precision in frontline responsibilities.

Time Savings: A significant majority recognize AI’s pivotal role in saving time, underscoring the efficiency gains achieved through automated processes and reduced manual interventions in frontline operations.

Reduced Manual Errors: A noteworthy percentage of HR professionals acknowledge the impact of AI in reducing manual errors, emphasizing its crucial role in mitigating the risks associated with human errors in daily tasks.

Enhanced Collaboration: Industry leaders recognize the influence of AI in fostering enhanced collaboration among frontline employees, suggesting that AI technologies play a key role in improving communication and teamwork.

Streamlined Processes: While slightly lower, a considerable percentage acknowledges the role of AI in streamlining processes, indicating improvements in the efficiency and flow of tasks through the incorporation of automated workflows.

These findings reveal a comprehensive picture of AI’s impact on the workflow efficiency of frontline employees, with task accuracy and time savings emerging as the most prominently recognized benefits. The acknowledgment of reduced manual errors, enhanced collaboration, and streamlined processes further highlights the multifaceted advantages that AI integration brings to frontline operations.

​How AI Elevates Frontline Decision-Making?

Do you believe Al technologies empower frontline employees by providing them with tools for decision-making and problem-solving?
Figure 19*Percentages do not add up to 100 due to rounding off

As frontline employees navigate dynamic challenges and make critical choices daily, the infusion of AI into frontline operations becomes a focal point of exploration. When asked about their views on the role of AI in empowering the frontline’s decision-making and problem-solving, 96% of survey respondents responded positively. This suggests that leaders acknowledge AI’s advanced analytics, automation benefits, and successful implementations, foreseeing it as a pivotal tool for enhancing frontline decision-making and problem-solving. The recognition of AI’s competitive advantage and innovation potential further strengthens this positive sentiment.

Measuring the Impact: Quantifying the ROI of AI in HRM

Calculating ROI of AI in HRM Functions

Understanding how organizations measure the Return on Investment (ROI) of AI in HR processes is crucial for strategically evaluating the impact of technological adoption, guiding decision-making, and optimizing resource allocation to foster sustainable and efficient HR management. When industry leaders were asked about the same, they revealed diverse perspectives on how their organizations calculate the ROI of implementing AI in HR processes.

How does your organization calculate the return on investment (ROI) of implementing Al in HR processes? (Select all that apply.)
Cost Savings
Improved Efficiency
Enhanced Decision-making
Streamlined Processes
Increased Productivity
Figure 20*Percentages do not add up to 100 due to rounding off


  • Improved efficiency: The majority recognizes enhanced operational efficiency as a key metric for ROI calculation. This suggests a widespread belief that AI contributes to streamlining HR processes, resulting in time and resource savings.
  • Enhanced decision-making: A substantial portion considers improved decision-making capabilities to be a crucial element in ROI assessment. This highlights the perceived value of AI in providing data-driven insights for more informed and effective HR decisions.
  • Increased productivity: The emphasis on increased productivity underscores the belief that AI plays a pivotal role in elevating workforce output, contributing directly to organizational success. This aligns with the broader goal of achieving enhanced performance through technological innovation.
  • Streamlined processes: The acknowledgment of streamlined processes as a factor in ROI calculation reinforces the importance of efficiency gains through AI integration. Organizations are keen on optimizing workflows for greater effectiveness.
  • Cost savings: While relatively low, a noteworthy percentage emphasizes the financial aspect, indicating that organizations often measure ROI by quantifying cost savings resulting from the implementation of AI in HR processes. This underscores a pragmatic approach to assessing the tangible benefits of AI adoption.

Challenges in Assessing AI's Impact on HR Business Outcomes

What challenges or complexities arise in attributing business outcomes to Al interventions in HR? (Select all that apply.)
Difficulty in Isolating AI’s Impact From Other Factors
Lack of Standardized Metrics for AI Outcomes
Resistance to Change Within the Organization
Limited Understanding of AI Capabilities Among Stakeholders
Integration Challenges with Existing HR Processes
Figure 21*Percentages do not add up to 100 due to rounding off

Understanding the challenges and complexities associated with attributing business outcomes to AI interventions in HR is essential for optimizing the integration of artificial intelligence in HRM. The data collected from respondents reveals multifaceted perspectives on the hurdles organizations encounter in this context.

Integration challenges with existing HR processes: The majority points to integration challenges with existing HR processes as a prevalent complexity. This underscores practical difficulties in aligning AI interventions seamlessly with established workflows, emphasizing the importance of a strategic integration approach.

Limited understanding of AI capabilities among stakeholders: A common hurdle is the limited understanding of AI capabilities among stakeholders. This highlights the need for comprehensive AI education and communication strategies to bridge the knowledge gap and foster support for AI integration.

Resistance to change within the organization: The resistance to change underscores the human aspect of AI implementation, indicating that successful integration not only requires technological readiness but also demands a strategic focus on managing organizational change effectively.

Lack of standardized metrics for AI outcomes: The lack of uniform measurement criteria hampers the establishment of a consistent evaluation framework, making it challenging to gauge the effectiveness of AI interventions uniformly across diverse HR contexts.

Difficulty in isolating AI’s impact from other factors: The difficulty of isolation poses a significant hurdle to accurately attributing business outcomes solely to AI interventions, highlighting the need for advanced analytical methodologies

Ethical AI: Building Trust and Transparency in a Data-Driven Era

Understanding Ethical Consideration of AI in HRM

How concerned are you about the ethical implications of integrating Al into HRM functions?
Not Concerned At All
Slightly Concerned
Moderately Concerned
Very Concerned
Extremely Concerned
Figure 22*Percentages do not add up to 100 due to rounding off

​Ethical considerations play a pivotal role in shaping the responsible deployment of AI technologies in HRM functions. When asked about their views on the same, survey respondents gave the following insights:

  • Not concerned at all: A modest percentage indicates a lack of concern about the ethical implications. It suggests that they may believe in the efficacy of current ethical safeguards, trusting that existing regulations or organizational practices effectively address ethical implications
  • Slightly concerned: A slightly higher percentage expresses mild concern. This group may recognize some ethical considerations but perceive them as manageable or may be awaiting further developments in AI governance.
  • Moderately concerned: Another segment acknowledges a moderate level of concern, indicating a heightened awareness of ethical implications. This group may advocate for additional ethical frameworks or transparent guidelines to mitigate potential risks.
  • Very concerned: A substantial portion expresses significant concern, highlighting a heightened sensitivity to the ethical aspects of AI in HRM. This group may advocate for robust ethical standards and oversight mechanisms to ensure responsible AI practices.
  • Extremely concerned: The largest segment indicates an extremely high level of concern, signifying a deep apprehension about the ethical implications. This group may emphasize the urgent need for comprehensive ethical guidelines, transparency, and accountability in AI integration within HRM.


While a notable portion expresses heightened concerns, exploring the reasons behind the varying degrees of apprehension is crucial for tailoring ethical frameworks and guidelines that address the diverse perspectives within the HRM community.

Policies Governing the Use of AI in HRM

Do you have policies governing the use of Al in HRM in your organization?
Yes, We Have a Policy
No, We Don't have a Policy
No, But We Are Planing to Create a Policy
Don't Know
Figure 23*Percentages do not add up to 100 due to rounding off

The establishment of policies governing the use of AI in HRM is crucial to guaranteeing responsible deployment, compliance, and ethical considerations. We investigated this further in our research and found that a significant majority (77%) affirm the presence of policies governing the use of AI in HRM within their organizations. This high percentage suggests a proactive approach toward establishing clear guidelines, reflecting a commitment to ethical practices and compliance in AI integration.

However, the remaining 7% of organizations lack such policies, and the 14% plan to create them underscore the necessity for increased policy-making endeavors in this domain.

Ensuring Equity and Clarity in AI-Driven Decision-Making

What measures do you believe can be implemented to ensure fairness and transparency in Al- driven decision-making? (Select all that apply.)
Adoption of Open-Source Algorithms
Conducting Regular Audits of AI Systems
Implementing Explainable AI Techniques
Promoting Diversity in AI Development Teams
Figure 24*Percentages do not add up to 100 due to rounding off

As organizations increasingly rely on AI-driven systems, ensuring adherence to principles of fairness and transparency becomes paramount. The data from respondents illuminates professionals’ views on key measures for promoting these principles in AI-driven decision-making:

  • Conducting regular audits of AI systems: A significant majority emphasizes the importance of regular audits for AI systems. This indicates a widespread belief that systematic evaluations are vital to identifying and rectifying potential biases, and ensuring ongoing transparency and fairness in AI-driven decision-making.
  • Implementing Explainable AI Techniques: An equal proportion of professionals underscore the need for implementing explainable AI techniques. This aligns with the growing demand for AI systems to provide comprehensible explanations of their decisions, fostering transparency and building trust among stakeholders.
  • Promoting diversity in AI development teams: A substantial portion of respondents support the promotion of diversity within AI development teams as a means to ensure fairness. This highlights the understanding that diverse perspectives can mitigate biases in AI algorithms, contributing to more equitable decision-making processes.
  • Adoption of open-source algorithms: Lastly, the respondents advocate for the adoption of open-source algorithms as a crucial measure. This signifies a recognition that transparent and accessible algorithms contribute to fairness, allowing stakeholders to scrutinize and understand the decision-making processes of AI systems.


The consensus on these measures indicates a collective understanding of the multifaceted approach required to ensure fairness and transparency in AI-driven decision-making. By advocating for open-source algorithms, regular audits, explainable AI techniques, and diverse development teams, professionals recognize the necessity of comprehensive strategies to address biases and enhance the ethical dimensions of AI integration in HRM.

Addressing Bias in AI Algorithms and Decision Making

Does your organization address bias-related concerns in Al algorithms and decision outputs?
Not At All
To Some Extent
Figure 25*Percentages do not add up to 100 due to rounding off

It is imperative to address bias in AI algorithms and decision systems to uphold the principles of fairness, equity, and transparency. As organizations increasingly leverage AI-driven technologies in HRM, understanding how bias-related concerns are approached becomes paramount. Our research revealed the following in context:

A noteworthy 74% majority, encompassing both the Significantly and Completely categories, underscores a robust commitment. This highlights the organizations’ active implementation of measures to address bias-related concerns, showcasing a heightened awareness of the need for comprehensive interventions to ensure fairness and equity in AI algorithms and decision outputs.

The 18% selecting “Moderately” may indicate organizations taking a balanced approach, implementing measures to address bias-related concerns in AI without undergoing a complete overhaul, reflecting a proactive effort to minimize biases while avoiding disruptive changes to existing systems.

Safeguarding Employee Privacy in the Age of AI

How confident are you in the current measures taken to address privacy concerns in Al applications?
Not At All Confident
Slightly Confident
Moderately Confident
Very Confident
Extremely Confident
Figure 26*Percentages do not add up to 100 due to rounding off

Ensuring employee privacy is paramount when integrating AI applications into organizational frameworks. In gauging HR leaders’ confidence in addressing these challenges, an overwhelming 83% of respondents (combining the Extremely Confident and Very Confident categories) expressed a robust assurance. This underscores a profound belief in the effectiveness of privacy safeguards implemented in AI applications.

Additionally, a significant 13% exhibit moderate confidence, indicating a belief in the current measures’ effectiveness. This suggests a balanced perspective, recognizing existing efforts while acknowledging potential areas for improvement.

Reskilling for the Future: How HR Can Prepare for the AI Revolution

AI and the Future of HR: Which Roles Are Most Vulnerable?

To gauge the perceived impact of AI implementation on distinct HR job roles, we inquired with survey respondents to identify the job functions considered to be at a heightened risk of disruption. The research findings highlight a widespread concern about the impact of AI on various HR functions, particularly those involving routine tasks, data analysis, and administrative duties.

Which specific HR job roles are perceived to be at the highest risk of disruption due to Al implementation? (Select all that apply.)
HR Admins
Learning and Development Professionals
Compensation and Benefits Specialists
Payroll Specialists
Figure 27*Percentages do not add up to 100 due to rounding off
  • L&D, compensation and benefits, and HR administration likely face a higher risk due to the increasing capability of AI to handle tasks like training program delivery, benefits administration, and data-driven talent management.
  • Recruitment could be impacted by AI-powered screening, candidate matching, and scheduling tools, though the human element might still be crucial for relationship building and evaluation of non-quantifiable qualities.
  • Payroll, despite its routine nature, might require human oversight for handling complex situations and ensuring data accuracy and security.

How Organizations are Preparing HR for the AI Revolution

Understanding the strategies organizations employ to reskill or upskill HR professionals in response to potential disruptions caused by AI is crucial for addressing the evolving needs of the workforce. Our research found the following in this context:

What strategies are your organization employing to reskill or upskill HR professionals whose jobs may be disrupted by Al? (Select all that apply.)
Internal Training Programs
External Certifications
Mentorship Programs
Skill-Specific Workshops
Figure 28*Percentages do not add up to 100 due to rounding off

Internal training programs: Organizations prioritize internal training to tailor reskilling to their workforce, ensuring a customized approach aligned with specific needs and organizational nuances.

Skill-specific workshops: The preference for skill-specific workshops highlights a targeted approach, allowing HR professionals to acquire hands-on, practical skills directly relevant to the evolving demands of AI integration in HRM.

Mentorship programs: The integration of mentorship programs signifies a focus on experiential learning and knowledge transfer, leveraging seasoned professionals to provide practical insights for navigating AI disruptions.

External certifications: The emphasis on external certifications reflects a commitment to industry-recognized credentials, validating HR professionals’ skills against broader industry standards for a comprehensive skill set.

Unveiling the Impact: Key Discoveries From the Study

HR Leaders See Big Potential in AI:

  • Global HR leaders are overwhelmingly positive about AI’s potential to transform HR functions.

  • They believe AI can improve efficiency, accuracy, and decision-making within HR.

AI Boosts HR Efficiency and Productivity:

  • By streamlining processes, automating tasks, and reducing errors, AI brings about significant efficiency gains for HR teams.

Data-Driven Decisions: AI Empowers Smarter HR Choices:

  • AI provides data-driven insights that help HR professionals make better decisions about performance management, goal setting, and other crucial areas.

Crafting a Personalized Employee Experience through AI:

  • AI helps personalize training and development, engagement, feedback, recruitment, and onboarding for individual employees.

Revolutionizing Talent Management: AI-Driven Hiring and Retention

  • AI-powered recruitment streamlines workflows and improves candidate matching.

  • It also contributes to employee retention by fostering a positive work environment and enhancing engagement.

Challenges and Considerations for AI Implementation:

  • Integrating AI with existing HR processes can be complex.

  • A lack of understanding of AI capabilities can hinder adoption.

  • Managing resistance to change within organizations is important for successful implementation.

  • Ensuring ethical considerations, fairness, and transparency in AI-driven decision-making is critical.

Measuring the ROI of AI is Multifaceted:

  • Improved efficiency, enhanced decision-making, increased productivity, streamlined processes, and cost savings are all factors to consider when evaluating the value of AI in HR.

The Future of HR is AI-Powered:

  • Organizations are actively integrating AI into HR with a focus on efficiency, data-driven decisions, and personalization.

  • Education, communication, and ethical guidelines are crucial for successful and responsible AI adoption.

Addressing Bias in AI Algorithms and Decision-Making:

  • Organizations are actively implementing measures to address bias in AI algorithms used in HR, highlighting a growing focus on fairness and equity.

Safeguarding Employee Privacy

  • HR leaders are confident in the effectiveness of current privacy safeguards within AI applications used in HR.

The Impact of AI on HR Roles:

  • HR jobs reliant on routine tasks and administrative duties are most vulnerable to disruption from AI.

  • Recruitment: While AI can automate screening, matching, and scheduling, the human element remains crucial for relationship-building and evaluating non-quantifiable qualities.

Preparing HR for the AI Revolution:

  • Organizations are adopting a multi-pronged approach to prepare HR for the AI shift. This includes internal training, targeted workshops, mentoring, and external certifications to ensure HR professionals develop the skills needed for successful AI integration in HR practices.

Survey Audience and Industries

To assess the present adoption and usage of AI in HRM and its impact on diverse organizational facets, we conducted a survey involving people leaders spanning various industries and company sizes. Our survey garnered insights from 209 respondents, representing a spectrum of 26 major industries. Here’s a quick breakdown of the voices we were able to capture:

Position/Title Count
Chief Human Resources Officer (CHRO) 46
Vice President of Human Resources 16
Director of Human Resources 56
Head of HR Operations 18
Director of Talent Acquisition 4
Director of Employee Relations 7
Director of Compensation and Benefits 5
Director of Learning and Development 8
Director of Diversity and Inclusion 6
Director of HR Analytics 11
HR Business Partner Director 18
Director of Organizational Development 4
Director of HR Technology 7
Head of People and Culture 1
Associate Vice President, Recruitment 1
President Owner 1
Company Size Count
200-500 employees 49
501-1000 employees 80
1000+ employees 80

Complete Industry List

Industry Count
Construction, Machinery, and Homes 30
Banking 23
IT and Consulting 23
Manufacturing 18
Retail & Consumer Durables 16
Education 13
Information technology 13
Business Support & Logistics 11
Healthcare & Pharmaceuticals 10
Finance & Financial Services 9
Advertising & Marketing 4
Consumer Services 4
Law and Legal Services 4
Insurance 4
Nonprofit 4
Real Estate 4
Transportation & Delivery 4
Airlines & Aerospace 3
Government 3
Telecommunications 3
Utilities, Energy, and Extraction 1
Business Services 1
Human Resources 1
Business and Professional Services 1
Others 2

About Engagedly

Engagedly, an innovative talent management suite fueled by cutting-edge technologies is a trailblazer in reshaping human resources management. At its core, Engagedly leverages AI to redefine traditional HR practices, introducing dynamic solutions that boost efficiency, foster inclusivity, and nurture a culture of continuous improvement within organizations.

Central to Engagedly’s transformative capabilities is Marissa™ AI, the AI enablement coach. This pioneering technology represents a paradigm shift in talent management, utilizing contextual AI to assist employees, managers, and people leaders in building highly engaged, high-performance organizations.

Marissa™ AI augments HR processes with real-time insights, facilitating efficient decision-making and enhancing workforce efficiency. By seamlessly integrating AI into talent management, Engagedly propels organizations into a future where intelligent solutions drive engagement, performance, and success in the ever-evolving landscape of HRM.


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