HR departments in the Asia-Pacific region are increasingly deploying AI and machine-learning technologies to improve their workforce management.
According to a survey of 1,515 HR and business leaders in the Asia-Pacific region conducted by Workday, 69% of organizations use AI or machine learning as part of one or more HR functions. In addition, 42% of respondents said they were increasing their reliance upon digital tools to streamline HR functions.
According to the survey,
- the top three use cases of AI and ML for HR are data analytics and reporting (49%) workforce management (45%) and performance management (44%).
- The majority of professionals (91%) think that AI and ML have positively impacted HR functions.
- Businesses also use AI and/or machine learning to manage HR service desks and employee records (42%).
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This report aligns with the HR Exchange Network’s 2024 State of HR Survey, which found Asia-Pacific HR Teams are investing more in AI technologies (35%) than other core technologies such as HR management systems (25%).
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South Korea (80%).
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In Japan, the technology was less popular. Only 48% of respondents used it in HR functions. This was despite the fact that many Japanese respondents faced challenges such as talent acquisition (48%).
IBM’s AI Adoption Index for 2024 found that South Asia, including ASEAN countries, was among the fastest adopters of AI in general. India (59%) led the way, followed by Singapore (53%).
The HR teams are managing more data now than ever before.
Business professionals and HR professionals say they rely on data to make informed decisions. According to a Workday survey, 70% senior managers and HR professionals perform more data management now than they did before the COVID-19 Pandemic.
According to the survey, HR teams use data for a variety of purposes.
- Creating an overview of workforce costs and trends in order to improve productivity and profitability.
- Delivering insights based on data to engage candidates during the hiring process.
- Understanding the engagement of different age groups by using employee sentiment data.
AI is seen as a way to keep pace with change and overcome challenges
According to the report, HR teams are dealing “the greatest work transform in a century.” Workday also noted that there has been a significant shift towards hybrid and decentralised working, as well as some changes in employee expectation since 2020. This environment creates difficult challenges for APAC HR. The biggest ones are:
- talent acquisition (36%).
- Employee Upskilling (35%).
- Staff retention (31%).
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Organizations are looking to create efficiencies or find new ways to deliver value using AI in areas such as sourcing or hiring. HR is exploring the use of resume summarisation and skills matching in order to reduce the time it takes for staff to recruit new team members.
AI could make HR more strategic
HR managers are taking on increasingly strategic roles in organisations across Asia-Pacific and Japan. The Workday survey revealed that 23% of respondents had attended board meetings’significantly more’ since 2020. 35% reported attending these meetings’somewhat more than before.
AI-based digital tools can help HR leaders deliver high-quality services. HR leaders should be aware of the risks associated with AI deployment. One of the first examples where AI could go awry due to bias was tools that shortlist candidates using existing employee data. Bird & Bird, a law firm, warned regional organisations to ensure that their AI models were ethically sound in a client-update.
The update from the law firm stated that “Ethical questions and legal questions regarding the liability and fairness of AI applications for HR decision-making are unclear and untested… In our opinion, it is possible to make a strong case that employers have an obligation to ensure AI algorithms are adequately trained to avoid discriminatory results.”