The impact of GenAI on jobs and organisations is profound and rapid. Our 2024 Global AI Jobs Barometer, found that for every single AI job posting in 2012, there are now seven, while sectors that are more exposed to AI are experiencing an almost five times greater growth in labour productivity.
This rapidly evolving workplace is placing huge demands on HR functions. Our latest annual CEO survey shows that 72% of business leaders in the Middle East anticipate that AI will require most of their workforce to develop new skills. Meanwhile, jobs that require AI skills carry a wage premium of up to 25% in some markets. In this GenAI-dominated business world, HR has never mattered more.
The good news is that this same technology that is transforming organisations and the skills they need is also driving a radical transformation of HR.
A gamechanger for HR
For HR, GenAI is more than a tool – it is a gamechanger. The most innovative Gen AI-powered solutions allow HR functions to become much more efficient and productive across the entire employee lifecycle, while generating valuable and actionable insight.
The transformative powers of GenAI on the workforce and HR agenda was the topic of the inaugural event in our People Pioneer Series, which highlighted the partnership between PwC Middle East and Darwinbox, an innovative and agile HCM suite that allows businesses to automate processes, deliver real insight, and stay ahead of change. Darwinbox allows HR functions not simply to ‘do things fast’, but to ‘do things well’, transforming the both experience of employees and the ability of HR functions to deliver efficient and value-adding services.
The discussion explored the ways in which GenAI solutions are transforming HR, and the pressing need for HR functions to articulate the strategic benefits they can bring:
Time for HR to make its case
Implementing GenAI in the HR function will require investment and leadership buy-in – it is essential that the return on investment can be clearly demonstrated through performance and productivity frameworks. At PwC Middle East, we support our clients by assessing their organisation's readiness and the effectiveness of their HR function, from initial evaluation through to post-implementation.
There are, of course, challenges around the implementation of GenAI, including addressing data privacy requirements and managing the risk of false information and bias, and it is essential that these are proactively addressed. In our work with clients, GenAI implementation is built on a foundation of governance, compliance, and data privacy. But it is clear that GenAI has significant potential to transform the HR function, generate cost savings and efficiencies, and improve employee engagement and productivity.
The next event in our People Pioneer Series will explore ESG and the role of organisational culture.
