By Tim Glowa
A major disconnect exists between what corporate leaders want and what HR teams can deliver when it comes to artificial intelligence. A 2024 McKinsey flash survey of more than 100 organizations with more than $50 million in annual revenue found that 63% of respondents are making AI a top priority (“Implementing Generative AI with Speed and Safety”). However, two-thirds of HR leaders say they are struggling to keep up, according to an SHRM report from October 2024 (“Survey Reveals HR’s Role in AI Adoption”), and the pressure on HR departments is mounting. Only 1% of HR teams have achieved advanced AI implementation, according to the same SHRM report, creating a massive opportunity for those who can bridge the gap and challenges for HR leaders who can’t.
The statistics tell a clear story: HR departments that fail to develop AI capabilities risk falling behind in a world where executives demand AI-driven results. This isn't just another tech trend. It's a fundamental shift that's already transforming how leading companies operate.
A WAKE-UP CALL FOR HR
Many HR leaders lack familiarity with how AI is currently used in HR functions such as talent acquisition and performance management. Despite this knowledge gap, there's still widespread belief that AI has the potential to significantly improve decision making in organizations.
This knowledge-confidence gap is the first hurdle most HR teams need to overcome. HR professionals are at a critical juncture where they must quickly build AI literacy or risk becoming organizational bottlenecks. The urgency cannot be overstated—corporate leaders are expecting results now.
REAL APPLICATIONS OF AI IN HR
Let’s cut through the noise and look at practical applications. AI isn’t just for tech companies or data scientists—it has specific, valuable uses in human resources.
In recruitment, AI tools can scan resumes more efficiently than humans ever could, removing unconscious bias from initial screenings when properly designed. These tools can predict candidate success based on patterns from your top performers, helping you find the right fit faster.
For employee development, AI systems can analyze skills gaps across your organization and recommend personalized learning paths for each team member. These systems can match mentors and mentees based on complementary skills and career trajectories, something that would take humans hundreds of hours to coordinate manually.
In retention strategies, AI can identify flight risk patterns months before an employee starts looking elsewhere, giving managers time to address concerns before resignation letters appear. It can also analyze engagement survey data to spot trends human analysts might miss.
Even in day-to-day operations, AI assistants can draft policies, onboarding materials, and communication templates that HR professionals can then personalize and finalize—saving hours of writing time.
THE RISK OF INACTION VS. MEASURED ADOPTION
The consequences of falling behind aren’t merely theoretical. Despite challenges with data and operating models, McKinsey found in a 2024 report (“The State of AI in Early 2024: Gen AI Adoption Spikes and Starts to Generate Value”) that Gen AI high performers are excelling. These high performers use AI across more business functions, averaging three functions versus two. They’re more likely to implement customized solutions and actively mitigate risks, with 42% attributing over 20% of EBIT to analytical AI.
Organizations avoiding AI altogether face bigger risks:
- Competitive disadvantage in talent acquisition
- Inefficient processes that waste resources
- Inability to provide the data-driven insights business leaders now expect
- Diminished strategic influence within the organization
Yet rushing into AI implementation without proper oversight carries its own risks. MIT Technology Review reported in 2021 ("LinkedIn’s Job-Matching AI Was Biased. The Company’s Solution? More AI.") that LinkedIn’s AI-driven Talent Insights platform disproportionately favored candidates from prestigious universities and companies while sidelining nontraditional career paths—creating a narrower talent pool rather than expanding it.
This cautionary tale highlights that AI implementations without proper oversight can amplify existing biases. But the answer isn’t to avoid AI—it’s to implement it thoughtfully with human guidance.
STARTING YOUR AI JOURNEY: THE AERO APPROACH
One practical framework for evaluating AI opportunities is the AERO Matrix (AI Evaluation of Risk & Opportunity), which helps leaders assess potential AI applications based on their risk and opportunity profiles.
The matrix divides AI applications into four categories:
- Low risk, high opportunity. These "Pursue" applications are the low-hanging fruit—like using AI to create personalized learning recommendations or streamline resume screening with human oversight.
- High risk, high opportunity. These "Evaluate" applications—like AI-driven performance evaluations—require careful implementation with robust ethical guardrails.
- Low risk, low opportunity. These "No-Brainer" applications won’t transform your department but can save time on routine tasks.
- High risk, low opportunity. "Avoid" these applications until the technology improves or the value proposition becomes clearer.
This approach helps prioritize AI investments while managing potential pitfalls.
ETHICAL CONSIDERATIONS AS A COMPETITIVE ADVANTAGE
HR leaders are aware of ethical challenges associated with implementing AI. This awareness itself can become a competitive advantage when properly applied.
When implementing AI, ethical considerations shouldn’t be an afterthought—they should be designed into the system from the start. This includes:
- Conducting regular audits to detect and address algorithmic bias
- Communicating clearly with employees about how AI is being used
- Maintaining human oversight over critical decisions
- Ensuring data privacy and security
- Developing transparent policies around AI use
Organizations that implement AI ethically will not only avoid potential PR disasters but also build greater trust with employees and candidates—a crucial differentiator in competitive talent markets.
Transparency builds trust. When employees understand how AI is being used to support—not replace—human decision making, adoption rates climb dramatically.
FROM THEORY TO PRACTICE: GETTING STARTED
There are practical steps any HR team can take to build capability in assessing AI risks and opportunities. HR leaders can develop this confidence through structured approaches and dedicated resources.
Start small. Begin with a single use case such as optimizing job descriptions using AI assistance. Measure the time saved and quality improvements to build a business case for further investment.
Build cross-functional partnerships. Work with IT, legal, and compliance teams to ensure proper governance. These collaborations ensure AI implementations meet technical requirements, data privacy standards, and regulatory guidelines.
Invest in AI literacy. Ensure that your team understands AI capabilities and limitations through focused training. AI literacy should be a core competency for all HR professionals, not just technical specialists.
Develop clear policies. Create guidelines for responsible AI use in HR functions. These should cover data usage, decision review processes, and transparency requirements.
Test and learn. Implement pilot programs before full-scale deployments, measuring results against clear KPIs. These metrics might include time savings, quality improvements, or employee satisfaction with AI-assisted processes.
CREATING A CULTURE THAT EMBRACES AI
Building technical capability is only half the battle. Creating a culture that embraces AI as a trusted ally requires addressing the human side of change.
The biggest barrier to AI adoption in HR isn’t technology—it’s mindset. Organizations need to shift the narrative from “AI will take our jobs” to “AI will make our jobs more meaningful.”
This cultural shift requires several things:
- Transparent communication. Be honest about how AI will change roles and workflows. Address fears directly and emphasize how AI handles repetitive tasks so humans can focus on high-value work.
- Inclusive development. Involve end-users in the selection and implementation of AI tools. When HR professionals help shape the tools they’ll use, adoption rates improve dramatically.
- A celebration of early wins. Showcase successful AI implementations and the benefits they deliver. These success stories build momentum and reduce resistance to future initiatives.
- The creation of AI champions. Identify early adopters who can mentor colleagues and demonstrate practical applications. These champions become invaluable resources during the transition.
- Continuous learning opportunities. Provide ongoing education about AI developments and applications. Learning should be celebrated as part of the department's culture.
FUTURE-PROOFING HR
The most important thing to understand about AI in HR isn’t the technology itself. It’s the shift in mindset required. HR is moving from a primarily administrative function to a data-driven strategic partner.
HR leaders who embrace this transition will find themselves with more time for high-value work such as strategy development, culture building, and coaching, leaving repetitive tasks to AI assistants. Those who resist may find their influence diminishing as other departments race ahead.
Only 22% of organizations have a clear strategy for implementing AI in HR, according to HR Brain in its February 2025 report ("The State of HR in 2025"). While 28% have adopted generative AI tools for HR functions, the absence of a structured approach leaves many companies vulnerable to inefficiencies, compliance risks, and missed opportunities. This gap presents both a challenge and an opportunity. HR professionals who develop AI expertise can position themselves as strategic and visionary leaders.
THE PATH FORWARD
The gap between corporate leaders’ expectations and HR readiness around AI implementation represents both a risk and an opportunity for HR teams. By taking thoughtful, strategic steps to incorporate AI into HR functions, departments can elevate their strategic value while avoiding potential ethical pitfalls.
The question for HR leaders is no longer whether to implement AI, but how to do so in a way that aligns with organizational values and enhances rather than replaces human judgment. Those who navigate this transition successfully will likely find themselves at the forefront of a fundamentally transformed HR function—one that combines technological efficiency with uniquely human insight.
The time to start is now. With leaders prioritizing AI and competitors moving quickly, waiting for perfect conditions before beginning your AI journey is a luxury few HR departments can afford.
Tim Glowa is founder of HR Brain LLC, creator of an innovative career support platform, and is dedicated to making the world a better place to work through the power of AI. A published author and former partner in a global consulting company, his strategies drive improved employee engagement, significantly reduce turnover, and help job seekers land their dream jobs faster, making him a key advisor in human capital and rewards strategy. His work has been featured in major media outlets, including the Wall Street Journal, Financial Times, Bloomberg, and CNBC, and many others. He is the author of the books The Future of Work, The Art of War: Strategic HR Applications, and Smart Board Governance for the AI Revolution.