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HR Teams in APAC Embrace AI for Efficiency Gains, Survey Finds

HR Tech

Business Honor
10 January, 2025

AI and machine learning are transforming HR practices in Asia-Pacific to improve decision-making and productivity.

According to a new survey by the HR and finance platform Workday, artificial intelligence and machine learning are increasingly applied in the Asia-Pacific region to simplify work, especially operations in human resources. A new survey of 1,515 business and HR leaders found that 69% of organizations in APAC use AI or ML in at least one HR function and 42% said they were using digital tools to enhance efficiency more now than six months ago.

According to the survey, AI and ML are being applied in various areas, which include data analytics and reporting, at 49%, workforce management, at 45%, and performance management, at 44%. In addition, AI is applied in managing employee records, at 43%, and in HR support or service desks, at 42%. It mirrors the larger regional trend whereby AI is increasingly being viewed as a means of coping with fast change and all the difficulties that an HR department might face.

The most aggressive adopters of AI are the HR leaders in ASEAN countries, where 88% of respondents in this region already use the technology. Other regions with high adoption rates include South Korea at 80% and Australia and New Zealand at 70%. In contrast, Japan had the lowest AI usage at 48%, despite the challenges that HR teams face in acquiring talent.

HR teams are now handling larger volumes of data, a trend that the COVID-19 pandemic accelerated. HR professionals are using data to gain insights into workforce costs, productivity trends, and employee sentiment. In these areas, the use of AI is helping HR leaders make more informed decisions and improve overall business performance.

While AI is perceived as a means to enhance HR's strategic role in organizations, experts warn that ethics must be taken into account. AI models in recruitment processes need to be trained to avoid bias, ensuring that HR decision-making are fair.