How Generative AI Will Transform HR | Boston Consulting Group

HR Effectiveness

This article explores the impact of Generative AI (GenAI) on the HR function, highlighting its potential to revolutionize HR into a more strategic and efficient function. According to a BCG analysis, GenAI has the potential to boost HR productivity by up to 30%, achieved through automated tasks or redirected time toward deeper employee engagement and talent planning. The charts show the potential time savings across 8 HR areas, pinpointing HR administration and shared services (20-30%) as the prime areas for capacity release. Other segments, such as recruiting and resources (10-20%), performance and career management (10-20%), and learning and development (10-20%), also stand to benefit. HR leaders and their teams can use this framework as they determine current time allocation spent in certain HR areas and identify the potential for Gen AI to unlock time and resources that can be reinvested into high-value activities. As noted in the article, HR leaders play a dual role in driving GenAI transformation for both the enterprise and the HR function; one illustration outlines how HR can play both roles. Here is an additional link to 14 slides that illustrate insights from the article, including use-case examples of GenAI in HR.