Making it easier to take care of what matters most: Is it time for your HR department to explore the AI advantage?

By James Saxton (pictured), Vice President Product, APJ at Dayforce

Productivity and profitability super-charger or a boat rocker that’s best approached with caution until the various use cases have been well and truly tested by more technologically forward organisations?

When it comes to adopting AI-powered technologies, many Australian business leaders and decision makers aren’t sure what stance they should be taking or where they should be focusing first.

They’re aware that Artificial Intelligence (AI) is the next big thing, the game changer that will up-end the way industries and organisations operate across the board – and they know that opting out isn’t a possibility for businesses that hope to survive and thrive long term.

Little surprise then that adoption is on the up and up across the board: 68 per cent of Australian businesses have already implemented AI technologies and a further 23 per cent were planning to do so imminently, according to 2023 research from CSIRO.

Those that have taken the plunge are reaping the rewards: average time savings of 30 per cent across all AI-related initiatives, by CSIRO’s reckoning.

Risks and rewards

While businesses may be eager to incorporate AI into their operations, doing so is no straightforward matter. Delivering a project is typically a complex undertaking, one that necessitates the engagement of multiple AI service providers, according to Export Finance Australia’s May 2023 publication, Australia – AI adoption creates benefits and challenges for businesses.

Moreover, organisations are ‘concerned about the potential for AI to introduce new security threats, poor data quality and privacy concerns over customer information’, the report notes.

Against that backdrop, it pays to select premium AI platforms and projects, ones that have the potential to add genuine value, by solving real world problems for your organisation.

Homing in on human capital management

Human capital management is an excellent place to start.

The power of AI stems from efficiency and the automation of repetitive tasks that need performing frequently and which are prone to human error. The HCM function features these tasks in abundance, from time tracking for payroll management to calculating taxes and deductions and identifying payroll anomalies prior to a pay run.

Mapping them back in an intelligent way to an AI-enhanced solution is a great way to do things smarter, faster and better. It can free up a significant amount of time; time your HR professionals can spend on higher value activities for which human input is essential.

Unpacking the benefits

Deploying automation technology, for example, can improve payroll and compliance by eliminating errors, boosting data security and ensuring your organisation remains compliant with myriad and ever-evolving ATO legislation and Fair Work regulations.

Utilising AI systems that provide leaders with real time access to insights into operations and productivity allows them to optimise the cost of human capital by making data driven decisions about staffing levels and rostering at a granular level.

Giving employees more control over the hours they work, and adopting processes and automated platforms that allow them to swap shifts with suitably qualified co-workers and complete other self-service actions, can make it easier to manage a flexible workforce effectively.

Automation technology can also be used to record employees’ existing capabilities and identify internal opportunities to use and enhance their skills and experience.

Building a stronger team with AI

Navigating the challenges of a rapidly evolving business landscape is immeasurably easier with the right people on board.

Harnessing the power of AI and automation can make it easier for your HCM department to recruit, support and retain a full complement of them – high performers who are committed to the success of the organisation and willing to work hard to achieve it.

Choose a platform that’s easy for your HCM team to use and incorporate into their everyday operations and you won’t just be on the fast track to greater efficiency and business value – you’ll also open up a world of possibilities for further optimisation and enhancement of every aspect of your operations.

If that’s important to your organisation in 2025 and beyond, there’s no better place to begin your AI journey.