Recent HR technology acquisitions are more about data because the current focus is on the data gold rush, especially with the rise of generative AI. Vendors are looking to access and leverage large datasets to train and refine their models, which public datasets often cannot provide adequately.
Benchmarking in HR is becoming less relevant because modern analytics provide more detailed and specific insights for individual clients. These insights are often more actionable and tailored to a company's unique needs, reducing the reliance on broad, industry-wide benchmarks.
There is a disconnect between vendor and customer expectations for AI in HR technology because vendors often overpromise the capabilities of their AI solutions, while customers find that the technology does not deliver as expected after deployment. This leads to a drop in perceived value and satisfaction over time.
2025 could be the year HR embraces AI, but only in limited and low-risk areas due to ongoing concerns and the need for cautious adoption. HR is likely to adopt AI in specific, well-defined tasks where the technology can provide clear benefits without significant risks.
Agentic AI is promising for HR technology because it can handle repetitive and mundane tasks efficiently, reducing the workload on employees and improving accuracy. These agents can be specific to a given task and can work together to handle more complex processes, potentially leading to significant productivity gains.
Large action models are the next big leap in AI for HR technology because they can reason and make decisions more autonomously. Unlike agents that perform single, pre-trained tasks, large action models can adapt to a broader range of scenarios, potentially revolutionizing how HR processes are managed and optimized.
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Stacia Garr, Co-founder and Principal Analyst at RedThread Research, joins us this episode to explore the current state of AI in HR technology. Stacia dives into how vendors’ AI expectations often diverge from those of their customers and examines the disconnect in how employers and employees relate to AI in the workplace.
This conversation took place at the HR Tech 2024 conference in Las Vegas.
[0:00] Introduction
[4:33] How has HR technology evolved in recent years?
[15:51] Beyond the hype cycle, where does AI land in the world of HR?
[25:46] Is 2025 the year HR embraces and adopts AI?
[34:56] Closing
Quick Quote
“Many of the [HR technology] acquisitions that are happening now are less about the technology and more about the data”**Resource:**RedThread Research)**Contact:**Stacia's LinkedIn)David's LinkedIn)Dwight's LinkedIn)Podcast Manager: Karissa Harris)****Email us!)****Production by Affogato Media)