Human Resources (HR) v Artificial Intelligence (AI)

Risk consultancy and insurance intermediary Partners& publishes research* on the
likely impact of Artificial Intelligence (AI) on employment numbers, line managers,
and Human Resources (HR) departments.

A survey* of 203 employers – representing a combined workforce of nearly 200,000
employees – by risk consultancy and insurance intermediary Partners& lifts the lid on how
employers are viewing the arrival of Artificial Intelligence (AI) in the UK workplace.

The Partners& research provides a rather more positive outlook than some of the doom-laden headlines of 2023. More than 7 in every 10 employers (73%) questioned do not
expect the arrival of AI to result in large numbers of lost jobs, with only 14% expecting the
new technology to result in a small (12%) or significant (2%) reduction in employee
headcount.

A small number of employers (4%) expect to employ more workers as a result of the arrival
of AI in the British workplace.

Steve Herbert, Wellbeing and Benefits Director at Partners&, commented:
“2023 has seen a surge of almost apocalyptic national media headlines around potential
job losses as a result of the introduction of AI, yet our research reveals that the vast
majority of employers are relatively sanguine about this new technology, and few believe
that it will make any more than a minor difference to their overall employee numbers.”

The research did however reveal a greater impact on HR and line management roles.
Whilst more than half of respondents (55%) thought that the number of such roles would
remain largely unchanged, 1 in 4 employers (25%) expected either a significant (1%) or a
smaller (24%) decrease in those roles focussed on people management duties.
The survey also reveals which aspect of employment and HR practices might be most
altered by the introduction and use of AI systems.

More than a third (35%) believe that workforce planning – including board-level data and
returns on investments (ROI) – will be improved by AI, and 1 in 4 (25%) also expect the
new technology to improve the recruitment and onboarding process. Other improvements
may include communications and employee engagement (18%), and talent development
and training (11%).

However, the survey also highlighted concerns that AI could be detrimental to some
aspects of the employment journey. Around 3 in every 10 employers (29%) questioned
thought that AI might worsen performance reviews and line management, with a similar
number (30%) concerned about communications and employee engagement.

Herbert concluded:

“Artificial Intelligence is here to stay, and it is likely that it will fundamentally change the
British workplace. Yet those changes will vary significantly depending on sector, employer,
and workforce demographics. Employers and their HR teams will therefore need to work
hard to ensure that any negatives to their employment process are carefully considered
and sympathetically dealt with to minimise potential disruption or harm to employer and
employee alike.”

“We would therefore encourage employers to engage early with their workforces over any
such change, and to use all the facets of their wellbeing and support offering to help
smooth the transition to the new – AI-enabled – workplace world that clearly lies ahead.”

*The Research was undertaken at the Partners& Employment Webinar on 19 September 2023
amongst an audience of more than 230 senior Human Resources (HR), Finance, Payroll, and C-suite
attendees representing 203 employers and a combined workforce of more than 192,000 employees.
The employers represented in the survey arose from a range of Private, Public, and Third Sector
employers.

Survey questions and responses referred to in the above release:
Question 1: Do you expect the introduction of AI to result in your organisation?
Reducing employee numbers by 10%+: 1.70%
Reducing employee numbers by 2% – 10%: 11.93%
No significant change to employee numbers: 68.75%
Increasing employee numbers by 2% – 10%: 3.98%
Increasing employee numbers by 10%+: 0.00%
Not sure: 13.64%

Question 2: Will the introduction of AI across the UK lead to?
10%+ more HR & line management roles: 0.00%
2% – 10% more HR & line management roles: 7.26%
No significant change to HR & line management roles: 55.31%
2% – 10% reduction in HR & line management roles: 24.02%
10%+ reduction in HR & line management roles: 1.12%
Not sure: 12.29%

Question 3: The introduction of AI in your organisation will most benefit which of the
following employment functions?
Recruitment & onboarding: 25.00%
Performance reviews & line management: 3.75%
Talent development & training: 11.25%
Communication & employee engagement: 18.13%
Wellbeing & employee benefits: 1.25%
Workforce planning, board level data, & ROI: 35.00%
None of the above: 5.63%

Question 4: Which of the following could be worsened by the introduction of AI systems in
your organisation?
Recruitment & onboarding: 5.36%
Performance reviews & line management: 29.17%
Talent development & training: 7.74%
Communication & employee engagement: 30.36%
Wellbeing & employee benefits: 6.55%
Workforce planning, board level data, & ROI: 3.57%
None of the above: 17.26%

About Partners&
Partners& is a Chartered insurance broker providing specialist insurance, employee
benefits, risk management and claims advice to businesses and private clients. As a next
generation insurance advisory business, Partners& combines the best traditions of broking,
such as technical advice and client service, with modern thinking and intelligent use of
technology, to enhance the client experience and create a dynamic workplace for its
talented team.

In July 2023, Partners& was named Broker of the Year at The British Insurance Awards.
Partners& has also been shortlisted in the UK Health & Protection Awards for “Best
Individual Protection Advice Firm” which will be announced on 11 October as well as UK
Broker Awards for “Commercial Lines Broker of the Year”, “Schemes Broker of the Year”
and “Best Training Programme”, which will be announced on 12 October, and finally,
Insurance Times “Schemes Broker of the Year” which will be announced on 6 December.
Other accolades include the Best Diversity & Inclusion Programme and Best UK Start Up
at the 2021 UK Broker Awards and the Diversity and Inclusion category at the Broker
Innovation Awards 2022. It has also been awarded its second gold Investor in Customers
award demonstrating its commitment to delivering exceptional client experience.

For more information, visit www.partnersand.com or contact Malia Brown, Marketing and
Communications Director, on malia.brown@partnersand.com or follow us on our social
media channels:
Facebook – @partnersand
Twitter – @Partnersand_
Instagram – partners.and
LinkedIn – Partners&.
YouTube – Partners&

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