Generative AI is reshaping the HR landscape, with a Bain & Company report highlighting its potential to save 15-20% of HR labour time across businesses. The report shows that HR operations teams could cut time by 35%, talent acquisition teams by 20%, and HR business partners by 15%. These efficiencies could transform HR from a transactional function to an organisation’s strategic partner.
Bain’s Generative AI Workforce Impact Explorer tool highlights how automation can streamline tasks like CV filtering, job posting creation, and workforce planning. As a result, HR specialists are poised to evolve into innovation leaders, business partners can prioritise workplace culture, and operational teams may shift to data-driven analytics.
“Generative AI has the power to elevate HR’s role in the organization, from transactional operators to strategic advisers. Our analysis suggests a typical company could save, on average, up to 20% in HR labour time through AI automation and augmentation,” said John Hazan, a partner at Bain & Company and global head of the firm’s Talent solution.
AI tools are already reducing administrative burdens, with many HR professionals using AI for contracts, job descriptions, and sentiment analysis to identify workplace bias. Employees, too, are warming to AI-driven processes: a ServiceNow study found that 75% of workers preferred AI-generated performance reviews over traditional methods, citing their objectivity and fairness.
Still, concerns about implementation persist. While 64.75% of employees expressed confidence in using AI fairly, only 20.45% believed AI could fully eliminate bias in performance evaluations.
By blending AI efficiency with human judgment, organizations can revolutionise HR processes, enabling professionals to shift from administrative tasks to roles emphasising culture, inclusivity, and strategic innovation.