AI for Human Capital Management: Powering HC Strategy
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AI for HR

AI for Human Capital Management: Powering HC Strategy

15 April 2024 / Report

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The application of AI to workforce management presents a unique blend of potential benefits and risks. A well-planned AI strategy for human capital management (HCM)––aligned with corporate goals––can mitigate many of the risks and ensure that AI initiatives are ethically sound, compliant with regulations, and support the organization's key objectives, priorities, and values in a cost-effective manner.

Trusted Insights for What’s Ahead™

  • Current and evolving use cases demonstrate the value of advanced AI in HCM. The integration of advanced AI in HCM has already showcased transformative potential in streamlining HR processes and enhancing the employee experience. Organizations should evaluate AI-driven solutions that can optimize operations and benefit workers throughout the talent lifecycle.
  • An AI strategy for HCM provides focus and direction amid the many AI choices available. A comprehensive AI HCM strategy provides CHROs with a framework to prioritize and implement AI solutions that align with corporate and workforce needs while offering the best resource-to-returns ratios within acceptable risks.
  • Clear metrics and reporting connect AI HCM strategy to business and financial outcomes. By tracking, measuring, and analyzing critical metrics, such as employee engagement scores, turnover rates, and productivity levels, CHROs can demonstrate the direct impact of their AI-driven HCM initiatives on key performance indicators, helping justify investments and inform continuous improvement.

The application of AI to workforce management presents a unique blend of potential benefits and risks. A well-planned AI strategy for human capital management (HCM)––aligned with corporate goals––can mitigate many of the risks and ensure that AI initiatives are ethically sound, compliant with regulations, and support the organization's key objectives, priorities, and values in a cost-effective manner.

Trusted Insights for What’s Ahead™

  • Current and evolving use cases demonstrate the value of advanced AI in HCM. The integration of advanced AI in HCM has already showcased transformative potential in streamlining HR processes and enhancing the employee experience. Organizations should evaluate AI-driven solutions that can optimize operations and benefit workers throughout the talent lifecycle.
  • An AI strategy for HCM provides focus and direction amid the many AI choices available. A comprehensive AI HCM strategy provides CHROs with a framework to prioritize and implement AI solutions that align with corporate and workforce needs while offering the best resource-to-returns ratios within acceptable risks.
  • Clear metrics and reporting connect AI HCM strategy to business and financial outcomes. By tracking, measuring, and analyzing critical metrics, such as employee engagement scores, turnover rates, and productivity levels, CHROs can demonstrate the direct impact of their AI-driven HCM initiatives on key performance indicators, helping justify investments and inform continuous improvement.

Authors

Allan Schweyer

Allan Schweyer Allan Schweyer

Principal Researcher, Human Capital
The Conference Board

Read Bio

Shuba Gopal, PhD

Shuba Gopal, PhD Shuba Gopal, PhD

Former Distinguished Principal Research Fellow, Hu…
The Conference Board

Read Bio

Faith Krebs

Faith Krebs Faith Krebs

Senior Fellow, Human Capital
The Conference Board

Read Bio

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