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31% of Indian companies are currently implementing AI in HR functions, with smaller organizations leading the adoption.
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57% of HR leaders believe AI will reduce workloads, enabling them to focus on strategic tasks.
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87% of respondents highlight the need for upskilling and reskilling employees to work effectively with AI.
A recent study by SHRM India reveals that Artificial Intelligence (AI) is increasingly being adopted in Human Resources (HR) functions across Indian companies. The study found that 31% of companies are already implementing AI, with smaller organizations (fewer than 500 employees) leading the charge.
According to the study, the primary benefit of AI in HR is reducing workloads, allowing HR leaders to focus on strategic tasks (57%). However, the adoption of AI also requires HR teams to acquire new skills. The study notes that 80% of current jobs will be impacted by AI, with 19% expected to be affected by up to 50%. To address this, 87% of respondents emphasized the need for upskilling and reskilling employees.
Smaller companies are driving AI adoption in HR, as they seek to compete with larger organizations. Nishith Upadhyaya, Executive Director at SHRM India, attributes this to smaller companies’ need to innovate and grow faster. In contrast, larger companies are adopting AI at a slower pace, but will need to upskill their HR teams to remain competitive.
The study highlights the importance of responsible AI implementation, with 77% of respondents noting that AI has increased work and creative challenges. Rohan Sylvester, Talent Strategy Advisor at Indeed India, emphasizes that businesses must focus on training and developing their workforce to equip them with AI skills. As AI continues to transform HR functions, Indian companies must prioritize employee upskilling and reskilling to maximize its benefits.
