Indian firms tentative to Adoption of AI in HR

Indian firms tentative to Adoption of AI in HR

Undoubtedly, Artificial intelligence (AI) has been transforming the work culture for decades, but its usage in HR department is still a major dilemma for India Inc. because majority of companies are still at a nascent stage in the adoption of AI, according to a recent study.


As per Global Insight's BIGSIGHTS 2019 report , nearly 29% of the organisations have 30-50% of systems in HR using data and analytics, while only 5% of the companies have adopted AI in HR Systems completely.


The survey conducted among 262 organisations in India, reveals that 49% of the companies fear AI can interpret culture based organisational decisions quite differently from what has been the norm, which can lead to wrong management decisions, inadvertent exposure and misuse of organisational data.


A sectoral analysis shows Education, IT, BFSI industries are leading the adoption of AI in their HR functions.


Furthermore , it was revealed that Media and Entertainment industry falls behind as compared to other industries with 75% of the organizations in the yet to enter space of leveraging the power of data.


In city wise study, HR professionals in 56% of organisations in New Delhi strongly feel there is lack of sufficient data and insights for decision making in Leadership Development.


While majority of organizations in Chennai have picked AI for application processing as they find lack of data in creating a sustainable and engaged candidate pool.


When it comes to preference of AI for HR, 78% of the organisations stated that Process Efficiency is the key reason for using AI in the HR function.


On Individuals’ fear of adoption of AI, 46% of the organizations believed that the change is too disruptive, and might lead to non-beneficial results.



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