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The Rising Demand for AI Integration in HR Consultancies

Recent findings from Kognitiv, a consultancy specializing in Workday services, indicate a significant shift in expectations among HR leaders regarding the integration of artificial intelligence (AI) in consultancy practices. Conducted across 500 HR decision-makers in the UK and Germany, the survey highlighted that a staggering 80% of respondents believe consultancies must improve their AI integration to remain relevant.

Growing Frustration with Traditional Models

Half of the HR leaders surveyed expressed concerns that consultancies have been slow to adapt to the rapidly evolving AI landscape.

In the UK, about 46% of HR executives think that AI technology could replace many of the tasks traditionally performed by consultants. Furthermore, 70% of them have already experienced cost reductions in consultancy services due to AI adoption.

This notable shift demonstrates a mounting dissatisfaction with longstanding consultancy practices. As firms like Kognitiv leverage AI to enhance performance, HR leaders are increasingly pushing for a consulting approach that combines AI capabilities with human expertise. More than 59% of those surveyed envision a future where AI and human oversight work in synergy, undermining the notion that technology alone can drive consultancy success.

Mark Grignon, CEO of Kognitiv, emphasizes that effectively solving client problems requires harnessing both AI and human resources. He stated, "Firms that fail to embrace this dual approach are not only missing out on AI benefits but also passing unnecessary costs onto clients due to their outdated business models."

The Hidden Costs of Traditional Consultancy

The research further reveals a concerning disconnect between the services provided by traditional consultancies and the needs of HR departments. While 95% of UK HR decision-makers still engage with consultancies, a mere 26% regard them as vital partners. Approximately 58% admit that consultancies are useful for certain challenges, but a significant portion (16%) voiced their disappointment with the service received.

Among the main grievances reported, the lack of cost transparency is cited by 44% of respondents, alongside limited flexibility in services (42%) and overall inefficiency (41%). Many organizations ultimately find themselves paying a 'Complexity Tax,' a term Kognitiv uses to describe the hidden costs involved in cumbersome consultancy partnerships burdened by slow approval processes, outdated systems, and excessive red tape.

These inefficiencies drain organizational time, budgets, and creative resources, compelling many HR leaders to seek AI-driven solutions as an alternative.

Kognitiv's Approach to Consultancy

Kognitiv is at the forefront of this transformation, positioned as a certified Workday AMS Services Partner. They offer flexible, pay-as-you-go consulting services designed to match the pace and innovation of Workday itself. This model allows Kognitiv to provide necessary support precisely when clients need it, free from the constraints of fixed contracts.

Since 2016, Kognitiv’s Post Production Support model has enabled Workday clients to receive on-demand assistance across various service areas, including ticket resolution, project management, and change management. This agility sets a new standard for consultancy, catering to the unique demands of modern businesses.

In conclusion, the new age of consulting is upon us, driven by AI capability and a reevaluation of traditional consultancy roles. As HR leaders voice their desire for more effective, transparent solutions, firms like Kognitiv are leading the charge towards a more efficient and technology-integrated consulting model, ensuring that the industry adapts to meet changing expectations.

For a full understanding of these shifts and insights, Kognitiv’s report, The New Age of Consulting Powered by AI, Driven by People, can be accessed here.