The Transformation of HCM: AI Adoption and Data-Driven HR Decisions on the Rise

The Impact of HCM Transformation on HR Operations



A recent report from Strada and ISG reveals that modern Human Capital Management (HCM) transformation is facilitating a remarkable shift in how HR teams operate. By deploying advanced HCM platforms, organizations are witnessing extraordinary growth in the utilization of artificial intelligence (AI) and machine learning (ML) in their operations. The findings indicate a staggering 500% increase in AI and ML usage alongside a 44% rise in data-driven decision-making, demonstrating the profound effect of digital transformation on HR functionalities.

Conducted through a survey of 190 global companies across various sectors, primarily focused on those that have implemented Workday HCM, the study illustrates that this transition leads to tangible results. A notable 91% of these organizations report success, a figure that far exceeds the standard success rate in the industry, where typically only half of such projects reach completion.

The improvements are evident across all facets of HR operations, marked by enhanced automation and integration alongside a more robust application of data in decision-making processes. Key accomplishments highlighted in the report include:

  • - 500% increase in the usage of AI and ML within daily HR activities.
  • - 66% growth in system integration efforts.
  • - 55% enhancement in process automation.
  • - 49% reduction in HR processes deemed complex.
  • - 44% growth in data-driven decision-making capacities.

The report emphasizes the necessity of establishing solid foundations for these transformations. Companies that have achieved the most significant enhancements—many of which utilize Workday—began with simplifying processes, adopting best-practice configurations, and establishing contemporary operational models. Prior to implementation, only 12% of companies characterized their HR processes as relatively straightforward; this figure skyrocketed to 45% post-implementation, a remarkable increase of 275%. Additionally, further 10% labeled their processes as significantly simpler—a term rarely used before adopting new systems. Notably, no company reported their processes as ‘very complex’ after the transition, marking another triumph in operational efficiencies. Furthermore, the degree of automation experienced a significant uptick, with the

Topics Business Technology)

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