A survey of 1,515 business and HR leaders in the region, Hosted by HR and Finance Platform Workday.found that 69% of organizations are using AI or machine learning for one or more HR functions. Additionally, 42% of respondents reported increasing reliance on digital tools to streamline HR tasks.
The survey also found that:
- The top three use cases for leveraging AI and ML in HR were data analytics and reporting (49%), workforce management (45%), and performance management (44%).
- Most professionals (91%) believe that the deployment of AI and ML has had a positive impact on HR functions.
- Businesses are also deploying AI and/or ML to manage employee records (43%) and HR support or service desks (42%).
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The report is in line with HR Exchange Network’s 2024 State of HR Survey, which Asia Pacific HR teams are investing in AI technologies. (35%) more than other core technologies such as HR management systems (25%).
HR teams in ASEAN countries are most active in rolling out AI.
The use of AI and ML in HR was found to be the highest among ASEAN respondents, with 88% of those surveyed in the region saying they were already using the technology in their organizations.
Other countries or regions where AI and ML were most popular, according to Workday’s findings, were:
- South Korea (80%).
- North Asia (72%).
- Australia and New Zealand (70%).
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The technology was less popular in Japan, where only 48 percent used the technologies in HR functions. This was despite many Japanese respondents facing challenges such as talent acquisition (48%).
of IBM AI adoption index from 2024 found that South Asian nations, including ASEAN countries, are generally among the fastest global AI adopters, led by India (59%) and Singapore (53%).
HR teams are managing more data than ever before.
Business and HR professionals said they rely more and more on data for informed decision-making.
According to a Workday survey, 70% of senior managers and HR professionals are performing more data management than before the COVID-19 pandemic.
The survey found that HR teams are using data for a variety of use cases, including:
- Create a view of workforce costs and trends to support improved productivity and profitability.
- Providing data-driven insights to engage recruiting candidates throughout the recruitment process.
- Understanding engagement across age groups using employee sentiment data.
AI is seen as a way to keep up with change and overcome the challenge.
According to the report, HR teams are dealing with “the biggest change of work in a century”. Workday also noted the significant shift towards hybrid and decentralized work and some changes in employee expectations from 2020. Such an environment is creating difficult challenges for HR in APAC, the biggest of which are:
- Talent acquisition (36%).
- Employee training (35%).
- Staff retention (31%).
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Organizations are looking to create efficiencies or new ways to deliver value through AI, such as sourcing or hiring new staff. HR is exploring use cases such as resume summarization or skills matching to reduce staff time in recruiting new team members.
AI can help HR become more strategic.
HR leaders are increasingly playing strategic roles within organizations in Asia Pacific and Japan. The Workday survey found that 23% of respondents attended board meetings “significantly more” since 2020, while 35% said they were attending them “somewhat more” than before. are
AI and digital tools can allow HR leaders to deliver value at a higher level. However, HR leaders should be aware of the risks of deploying AI. One of the tools was to shortlist candidates based on existing employee data. First examples of where AI can be wrong due to bias..
Law firm Bird & Bird has warned regional organizations in a client update to ensure their AI models are ethically sound..
“Ethical and legal questions on the responsibility or fairness of AI applications in HR decision-making remain unclear and unexamined … In our view, a strong argument can be made that employers have a legal obligation to protect their AI algorithms. are adequately trained to avoid discrimination,” the law firm’s update said.