Gartner: generative AI wave will drive broader tech investment

Growing hype around generative AI and how it can improve ways of working has become a ‘tipping point’ for HR leaders and businesses in terms of technology investment, according to Gartner.

This week the analyst company held its ReimagineHR conference in London and identified three macro trends impacting organisations’ investments in recruiting and HR systems: that the buzz around tools such as ChatGPT will spur on more discussions about AI in recruitment; that a harsher regulatory environment will lead to more vigilance around how AI is used; and that longer buying cycles will increase HR teams’ caution around technology vendors.

According to Helen Poitevin, distinguished analyst at Gartner, workplace conversations have moved past discussions around hybrid working and onto how HR can increase maturity and build trust with the workforce. Generative AI investment, meanwhile, has gained a “sense that it must be done, rather than if and when”.

“There is broad enterprise interest in adopting generative AI, and HR is one of the key use cases,” she added. “This means there are a lot of conversations between HR and IT in terms of how these investments will look, how they will tap into processes, and what IT can accelerate.”

Building the business case

Compelling examples of AI in action have made broader HR tech discussions easier in many cases, Poitevin explained, citing an example of one chief HR officer who had reduced a five-to-seven day hiring cycle to a same-day cycle and moved to more flexible staffing by adopting a portfolio of AI tools.

In 2024, Gartner predicts the use of generative AI will increase mostly in recruitment, in tasks such as drafting job descriptions, candidate communications and coming up with interview questions.

But while usage will accelerate, the regulatory environment around this fast-growing technology will lead to more caution, as well as discussions around the ethical considerations of automating certain workplace tasks.

“Organisations will need to think about what their vision is for AI, and that tells them what impact it will have on the workforce,” she added.

“When you’re limiting yourself to making things more efficient, that’s where you might see job losses. But if you have a vision you can do things in a different way, where people can stay employed, you’re pushing the boundaries.”

Employee experience

And while AI tools will take on many mundane tasks and make certain processes more efficient, it’s crucial that HR teams and leaders keep coming back to the employee experience. The pandemic built employees’ need for greater trust in and from leaders, said Poitevin, and they could be at risk of losing that if they use technology to monitor or punish employees.

“Bosses talk about getting value from measuring employees’ experience, productivity and wellbeing, but employees only really support that monitoring if it helps them to get things they need for their job, or recommendations for the next step in their career,” she added.

An example of this might be using AI to suggest relevant learning content to someone’s progression path, versus monitoring keyboard strokes or log in times to check an employee is working.

Further Gartner research released this week echoed this need for employees to feel they are trusted and valued, particularly in times of accelerated change.

It found that when managers create an environment of psychological safety, there can be up to a 46% reduction in change fatigue symptoms such as apathy, burnout and frustration.

Andy Karr, vice president in Gartner’s HR practice, said HR leaders needed to involve employees in change plans but also provide them with an environment where they can have “safety to experiment” and “safety to challenge”.

“In today’s workplace, employees now experience multiple, stacked changes that lead to burn out. Employees don’t get the opportunity to ‘recharge’ without intervention,” he added. “To address these challenges, HR leaders should ensure change fatigue strategies are an inherent part of their change management plans.”

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