AI in the talent market is no longer an abstract concept – it’s here and having a huge impact

Published in October 2024, the Fosway 9-Grid^TM for Talent & People Success analyses the world of talent management and employee experience.

Here Fosway analysts look at some of the key market trends that heads of HR and other business leaders should keep an eye on.

AI moves from hype to practical application

Whilst AI has been a buzzword in HR for years, 2024 marks a significant shift towards real world application and practical implementation. Advanced AI applications are now starting to be used for strategic workforce planning, skills gap analysis, and optimising talent processes.

However, adoption rates still vary widely, with a few organisations fully embracing AI-driven practices whilst others are still in planning or early stages of implementation. Despite that variance, the focus has clearly shifted from simply having an AI story to practical application, and demonstrating tangible results and ROI from AI investments in HR.

AI is the backbone of experience transformation

Despite a wall of past hype and false promises, AI has finally started to become a critical differentiator for transforming people experiences, especially in skills development, employee engagement, career pathing, learning, and internal mobility. Solutions with embedded AI have also started to become essential to supporting key ‘moments that matter’.

AI’s capacity to infer skills, facilitate mentorship connections, match individuals to projects or gigs, and react to career aspirations is revolutionary. From enhancing employee experiences to boosting HR productivity and informing strategic decisions, AI-augmented processes are increasingly becoming in high demand and now able to deliver real results.

EX and AI-driven personalisation forces change

Enhancing employee experience (EX) and now leveraging AI for personalisation have jointly become the lead drivers for HR system upgrades. This has been arguably true for a number of years; only 31% of HR professionals believe their current systems are fit for purpose for the modern workforce. To meet the expectations of today’s employees and to improve HR effectiveness as well as efficiency, is making organisations look beyond their HCM systems to deliver next-generation people experiences that are highly personalised and AI-driven.

This is an excerpt from the 2024 Fosway 9-Grid for Talent & People Success. Get the full insight and discover all the latest market and solution trends by reading the whole report here.

What should you do next?

• How will AI affect talent and employee experience developments? Take part in Fosway’s strategic project for 2025: ‘AI in HR’.
• What are your AI challenges as an HR leader? Browse the latest HR Realities research.

Recommended reading

• Other Fosway research related to Talent & People Success.
• The 2024 Fosway 9-Grid^TM for Cloud HR – full report which looks at the latest HR trends including how HR leaders can leverage AI.
• How AI fosters the connection between what businesses need and what employees want. To thrive, businesses will need to align their direction with the aspirations of their employees.

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