UK HR leaders face tech overload hindering AI adoption

New research has found that UK HR leaders are challenged by current workflows, hindering their ability to adopt AI-driven technologies and workforce innovations.

The research, commissioned by aconso, surveyed 250 senior HR leaders in the UK and highlights the burdens of managing fragmented tech solutions and an overstretched workforce. More than half (53%) of HR leaders identified tech overload as a barrier, finding that current tools increased rather than reduced workloads.

An overwhelming 63% of HR leaders believe AI and automation will be critical in three to five years, but current systems do not allow them to focus on such innovations. This is compounded by 70% of HR teams spending considerable time on tasks like policy compliance, while 60% are engaged in maintaining employee documents, leaving limited time for strategic work.

Ulrich Jaenicke, Co-founder and CEO of aconso, commented: "The rush to implement digital technologies post-pandemic has left many HR teams with several core workflow issues thanks to disjointed systems, siloed data, and manual processes. Feelings of being overwhelmed and overworked leave HR teams with little time to focus on tasks that will unlock value for their people or business, even though they want to."

He added, "Technology can deliver value — but only if it improves the experience of HR teams, rather than adds to current challenges. AI and digital investments must be considered to unlock HR's potential and drive meaningful change."

The report, titled "Transitioning from Manual to Meaningful: Unlocking HR's potential through AI and Digital Transformation," also revealed that 73% of UK HR leaders struggle with aligning strategy amidst changing business goals and employee needs. Many feel overwhelmed by their responsibilities, with 43% reporting feeling constantly caught in cycles of layoffs and performance management.

Looking forward, 54% of HR leaders see building a new, unified tech stack as essential to reducing inefficiencies stemming from disparate systems. Additionally, AI and automation, cited by 61% as a top investment, are already being used in recruitment, document management, payroll, and benefits.

Further, 58% of HR leaders place value on self-service tools to digitise employee documents, aiming to decrease HR workloads and increase employee engagement. Meanwhile, 56% prefer investing in dedicated HR solutions rather than generic tools to better meet their needs.

The strain on HR professionals shows a need for significant change to alleviate workloads and meet future trends, such as employee well-being initiatives and workforce reskilling. The findings suggest tech overload is not only inhibiting workflow but also failing to meet the specific needs of HR departments due to overly generic solutions.

This research was conducted by Opinion Matters and involved 650 senior HR leaders globally, focusing on companies with over 5000 employees that use ERP software in the UK, US, and DACH region. The data was collected over a period from late September to early October 2024.