This IDC Market Perspective looks at the impact of generative AI on HR, focusing on key use cases and future developments. As its role expands beyond simple HR process automation, organizations are exploring its impact on talent management, core HR, and employee experience; its effect on key HR metrics such as time-to-hire, payroll errors, and internal mobility rate; and the emerging challenges that come with GenAI deployment."Generative AI in HR is evolving fast, and vendors moving early will have a clear advantage in shaping market expectations. The same goes for buyers — early adopters that want to go through AI-fueled HR transformation will see gains not just in HR efficiency, but also across the business. Late movers risk falling behind as AI-driven processes become the new standard from core HR to talent acquisition and employee experience," said Ivan Oz, research manager, IDC's AI-Empowered HCM.
Executive Snapshot
New Market Developments and Dynamics
Core HR and Payroll
Automation of Complex Workforce Data Management and Compliance
Workforce Planning and Payroll Management
Long-Term Outlook and Challenges
Talent Acquisition
Job Requisition and Candidate Screening
Candidate Relationship Management and AI-Driven Interviews
Long-Term Outlook and Challenges
Employee Experience and Skill Development
AI-Driven Engagement and Well-Being Initiatives
Skill Development and Career Pathing
Long-Term Outlook and Challenges
Advice for the Technology Supplier
Focus on the Business Impact of GenAI, and Communicate ROI Clearly
Ensure GenAI Decisions Are Transparent and Explainable
Keep up — Some Vendors Are Already Shaping the Next Wave of GenAI
Take Note that Buyers Expect Security and Compliance Beyond Surface-Level Controls
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Related Research
Synopsis
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