- 66% of HR organizations are currently using AI-powered tools.
- HR workloads to increase by 10% by 2025, while facing budget cuts and headcount reduction.
- The Hackett Group (HCKT, Financial) anticipates a 4.2% year-over-year increase in automation for HR.
The Hackett Group, Inc. (NASDAQ: HCKT) has published its 2025 Key Issues Study, highlighting the rapid adoption of generative AI (Gen AI) among human resources (HR) leaders to advance their human capital objectives. The study reveals that 66% of HR organizations are currently utilizing AI-powered tools. Despite this technological advancement, HR workloads are projected to increase by 10% in 2025, coinciding with budget cuts of 1.5% and a headcount reduction of 2%, resulting in a 12% productivity gap.
In 2025, key areas for AI expansion identified in the study include talent acquisition, where 52% use AI for job descriptions and 39% plan to implement AI for resume screening. Additionally, 48% are utilizing AI for employee communications, 45% for HR service delivery, and 29% plan to adopt AI for skills documentation and training assessments.
The Hackett Group anticipates a 4.2% year-over-year increase in automation as part of HR organizations' efforts to bridge the productivity gap. The company recommends that HR leaders prioritize improvement projects, invest in reskilling and upskilling their teams, simplify processes, and redesign talent management strategies to drive transformative value and enhance competitiveness.
The Hackett Group encourages decisive action on AI adoption to gain a competitive edge in workforce management, employee engagement, and enterprise productivity.