The rapid advancement of artificial intelligence (AI) is transforming industries, including the realms of human resources (HR) and leadership development. At a recent LatentBridge - We-Ace roundtable, leaders and experts from various industries came together to share insights into how AI is influencing HR practices and what it means for the future of work. Here’s a closer look at the key takeaways from this enlightening discussion.

1. The Shifting Priorities in HR: From Staffing to Development

A key trend highlighted during the roundtable was the changing focus of HR investments. A survey discussed at the event revealed that organisations are dedicating more resources to learning and development (L&D), with spending on recruitment seeing a decline. This shift stems from overspending during the pandemic and the subsequent "Great Resignation."

Why the Shift?

• Upskilling for Future Readiness: As 44% of core skills are projected to evolve in the near future, organisations are focusing on equipping employees with future-proof skills like prompt engineering and open-source tool expertise.
• Continuous Learning Cultures: Establishing a culture of continuous learning that aligns with business objectives is now a strategic priority.
• Employee Retention: Learning opportunities are increasingly viewed to enhance engagementand reduce turnover.

2. AI as a Catalyst in HR and Leadership Development

AI is no longer just a tool for automating processes—it is emerging as a strategic enabler in HR. From personalising learning journeys to matching employees with mentors, AI is being utilised to address a wide range of challenges.

Key Applications of AI in HR:

• Personalised Learning Paths: Tools like Fetch, a knowledge assistant, help tailor learning programmes to individual roles and career paths by integrating internal and external data.
• Enhanced Mentorship: AI-driven mentor-mentee matchmaking enables employees to find guidance that aligns with their unique needs and career goals.
• Streamlined Processes: AI simplifies tasks such as searching for policies, handling compliance queries, and automating administrative workflows.

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The Human-AI Balance

Despite these advancements, participants emphasised the importance of keeping humans in the loop. While AI excels at automating repetitive tasks, high-touch roles such as leadership coaching require human empathy, intuition, and contextual understanding.

3. Overcoming Barriers to AI Adoption

The roundtable discussion shed light on the barriers organisations facein adopting AI for HR purposes:

• Data Privacy Concerns: Stricter regulations in regions like the UK and scepticism about data sharing hinder AI adoption.
• Generational Differences: Younger employees are more open to AI tools, whereas senior executives often prefer traditional, high-touch methods.
• Complexity of Tools: Participants stressed the need for intuitive, user-friendly interfaces. AI tools must align with existing workflows to ensure adoption.

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Building Trust

A recurring theme was the importance of building trust in AI systems. Clear communication, transparency, and showcasing tangible benefits are critical for overcoming resistance.

4. Leadership Coaching: Human Touch vs. AI Scalability

Leadership coaching emerged as an area where AI is making inroads, though it has its limitations. While AI can deliver scalable, data-driven coaching for specific skills, behavioural coaching and leadership development still heavily depend on human expertise.

Why Human Coaches Still Lead:

• ‍Empathy and Connection: Human coaches can interpret unspoken cues and build emotional rapport,which is vital for behavioural change.
• Contextual Understanding: AI struggles to fully grasp nuanced workplace dynamics that humans canintuitively navigate.

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AI's Strengths:

• Scalability for technical mentoring.
• Consistency in delivering unbiased feedback.
• Round-the-clock availability for mentoring support.

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5. Generational and Cultural Differences in AI Adoption

The generational divide in AI adoption was another point of discussion. Younger employees, who have grown up with digital tools, are more likely to embrace AI-driven solutions. Conversely, senior executives tend to favour traditional approaches.

Cultural differences also play a role. The US is leading in AI experimentation, supported by larger budgets and a more open approach to data usage. In contrast, the UK and Europe exhibit caution due to strict erregulations and trust issues.

6. The Road Ahead: What Organisations Need to Focus On

As AI continues to integrate into HR practices, organisations must takeproactive steps to address challenges while maximising AI's potential.

Actionable Strategies:

• ‍Upskill the Workforce: Equip employees with AI-relevant skills like low-code/no-code toolusage and prompt engineering.
• Simplify AI Tools: Ensure tools are as intuitive as consumer apps to encourage adoption.
• Focus on ROI: Highlight measurable outcomes like productivity gains, employee satisfaction, and retention to build confidence in AI investments.
• Maintain Human Connection: Use AI to supplement, rather than replace, human interaction in areas such as coaching and mentoring.

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Conclusion: Embracing the Future with a Balanced Approach

The roundtable discussions underscored the transformative potential of AI in HR and leadership development while highlighting the continued importance of a human touch. By addressing trust barriers, aligning AI tools with business goals, and prioritising employee needs, organisations can harness AI’s capabilities to prepare for the future of work.

AI is not here to replace humans but to work alongside them, enhancing processes and creating growth opportunities. As one participant aptly put it: “Technology can simplify tasks, but it’s the human connection that truly drives impact.”

Our Commitment at LatentBridge

At LatentBridge, we are committed to driving impactful change. Ourrecent achievements reflect this dedication:

• We are proud to have been recognised as one of the Deloitte UK Technology Fast 50 for 2024, highlighting our rapid growth and innovation.
• Our CEO, Hema Gandhi, received the Women in Leadership award, celebrating her exceptional leadership and commitment to fostering an inclusive,forward-thinking workplace.

If you're ready to explore how AI and personalised learning can shape the future of your organisation, contact us today. Let’s discuss how LatentBridge can help you leverage cutting-edge technologies like Fetch to streamline processes, enhance productivity, and develop your workforce for the future.

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