Mumbai, Sep 3
About 45 per cent of Indian companies have already implemented or are piloting generative AI in their HR processes, according to a report on Tuesday.
The report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG) showed that with GenAI about 93 per cent of companies showed improved efficiency and productivity.
The report, presented at the FICCI Innovation Summit 2024, outlines the transformative changes reshaping the Indian HR landscape, highlighting key strategies for organisations to thrive in a rapidly evolving business environment.
As India’s economy continues to grow, the HR function is undergoing a radical transformation, driven by technological advancements and the need for more inclusive and purpose-driven workplaces.
"Companies are moving beyond the pilot phase with predictive and generative AI, scaling across the HR value chain and investing in developing GenAI expertise. By continuing to evolve and innovate, Indian companies are setting the foundation for purpose-driven and innovative workplaces of the future," said Ashish Garg, Managing Director at BCG.
Further, the report showed that a significant 85 per cent of Indian CXOs surveyed believe that Environmental, Social, and Governance (ESG) initiatives are essential or very important in driving HR strategies and aligning organisational culture with broader societal goals.
About 66 per cent agree that environmental responsibility has become significantly more important in the past 1-2 years and are adapting to global and national ESG reporting standards.
“The business landscape is evolving with unprecedented speed, driven by technological advancements, shifting workforce dynamics, and the imperative for sustainability, making the role of Human Resources more critical than ever. By embracing these emerging trends and embedding Diversity, Equity, and Inclusion (DEI) and ESG principles into their core strategies, organisations can build resilient, innovative and purpose-driven workplaces that are well-equipped to meet the challenges of the future,” said Jyoti Vij, Director General, FICCI.
Talent management is another critical area, with 72 per cent of organisations leveraging policy changes to enhance work-life balance, recognising it as vital for talent retention.
The report noted that Indian companies are also increasingly prioritising comprehensive programmes to support employee well-being, with 79 per cent offering professional development opportunities and 60 per cent providing mental health support.
This focus is particularly important given that 58 per cent of Indian employees report high burnout rates, highlighting the need for robust wellness initiatives.
