A New Study Reveals How AI is Transforming HR Consulting Firms

AI's Impact on HR Consulting: A Study by Kognitiv

A recent study by Kognitiv, a consulting firm aligned with Workday services, has shed light on the significant changes that Artificial Intelligence (AI) is bringing to the HR consulting sector. Conducted in collaboration with 500 HR decision-makers across the UK and Germany, this study revealed a clear shift in expectations and requirements for consultancy services in light of advancing technology.

The Findings

80% of HR leaders expressed a desire for consulting firms to better integrate AI into their operations. Furthermore, an alarming 44% feel these firms have been slow to adapt to AI technologies, indicating a substantial gap between the potential of AI and the current offerings in HR consulting.

The report, entitled The New Age of Consulting, highlights a growing frustration among HR professionals regarding traditional consulting partnerships. Specifically, there is a mismatch between what HR leaders expect and what consulting firms are currently delivering. Approximately 46% of respondents believe that AI could potentially replace many tasks traditionally carried out by consultants, while 70% admit that AI has already helped reduce consulting costs.

Interestingly, HR professionals are not just desiring AI adoption; they are actively reducing consulting expenditures in favor of AI alternatives. This indicates a proactive approach by HR departments to leverage technology to streamline operations and enhance efficiency.

The Future of Consulting

When asked about the future of the consulting industry, HR leaders foresee a stronger integration of AI, greater transparency, and a diminished reliance on traditional consultants. A significant 59% of respondents suggested that the future consulting model will blend AI capabilities with human expertise, indicating a supportive role for AI rather than a replacement of human consultants.

Mark Grignon, CEO of Kognitiv, emphasized that the primary goal is to resolve client problems efficiently. He mentioned, “Our obligation is to harness our expertise and data sets to build AI models and solutions that enhance our support. It’s not science fiction; it mandates the presence of human staff for oversight.” Grignon's message underscores the necessity of a human touch in the AI-driven consulting process, where human oversight enhances technology's capabilities.