Next Step in GenAI for Human Resources: Proliferation vs. Prioritization

Dave Ulrich, Rebecca Ray & Alan Todd

Have you ever felt overwhelmed?

Imagine going into a big box retailer for the first time. On a given day, each Walmart store carries around 140,000 stock-keeping units (SKUs), and most supermarkets carry over 30,000 items.

Or think how TV watching (in the U.S. and elsewhere) has evolved from a few channels to about 200 channels with cable (Cox, DirecTV, DISH, Spectrum, or others) to thousands of options through numerous streaming providers (Amazon Prime Video, AMC, Apple TV+, DirecTV, Disney+, ESPN, Fubo, Hulu, Max, Netflix, Paramount+, Peacock, Philo, Pluto TV, Roku, Sling TV, STARZ, YouTube, and others!).

Feeling overwhelmed is now commonplace in the technology space. Currently, nearly nine million apps¹ are available for phones worldwide. Of those, 3.553 million are on the Google Play Store, 1.642 million are on the Apple App Store, and 600,000 are on the Amazon App Store. Around 250 million app downloads occur daily.²

This burgeoning app growth shows up in the global artificial intelligence in HR market size,³ estimated at USD 3.25 billion in 2023 and projected to grow at a compound annual growth rate of 24.8 percent from 2024 to 2030. Today, genAI can analyze vast amounts of data^[11] to manage all HR processes, resulting in a proliferation of HR apps sponsored by leading human capital management^[1] (HCM) platform firms (ADP, Microsoft, Oracle, SAP, UKG Pro, Workday, and others), consulting firms (Accenture, BambooHR, Deloitte, McKinsey, Mercer, PwC, and others), and smaller startups.

GenAI for HR is a top agenda in every “trends for 2025” report. HR and business leaders recognize the power of technology to transform HR, change the workplace, streamline HR processes and solutions, access information, and improve decision-making. Gartner found ⁴ that 76 percent of HR leaders believe that if their organization does not adopt and implement AI solutions, such as generative AI,⁵ in the next 12 to 24 months, they will lag in organizational success compared to those that do.

When we talk to senior HR (and business) leaders, they recognize and agree with the potential impact of genAI for improved HR services. But often, they feel overwhelmed, not knowing where to focus attention, leading to poor decision-making, unintegrated actions, and burnout. HCM platform firms, consulting providers, and innovative startups create numerous genAI apps, tools, and services. Without managing this growing proliferation of genAI services, HR investments in genAI may not create value for stakeholders,⁶ which is a primary agenda for HR contribution.

HR and business leaders want to know which genAI apps streamline HR processes and access information^[3] to improve decision-making and increase value to customers, investors, and communities⁷ so that business financial results follow. The daunting proliferation requires prioritization for HR to continue to move up the s-curve of genAI impact ⁸ and implement the right genAI tools.⁹

Prioritization of genAI enables HR and business leaders to invest in HR apps that deliver the most value to all stakeholders. Then, they can focus their attention on implementing the right AI apps. For example, those who go to big box stores do not randomly wander down aisles but shop with a list of items they seek. Those who use mobile apps generally prioritize the 40 to 50 apps¹ they most frequently use. Those who watch TV identify the streaming services and channels they use and define them as “favorites.”

As 2025 will continue to proliferate even more genAI HR apps (estimated growth of 16 compounded annual growth rate¹⁰ from 2023 through 2030), the challenge for HR will be to prioritize.

While we make the case below that prioritization is critical now (and is), what is ultimately necessary (but not yet available) is an app that provides the framework^[6] to know what to prioritize. To be clear, a practical HR function is table stakes. We are talking about how to take an HR function from good to great, not because it performs its HR tasks efficiently but because it delivers stakeholder^[7] value and contributes to the business’s success. To be an excellent HR organization, prioritizing apps by functional area (or any other classification) is helpful, but how would one determine that the selection of that functional area and the subsequent energy and resources devoted to it, say leadership development, is the right area when performance management might well be the area that would support the most significant business success or provide greater stakeholder value. How do you know? It will require an overarching app, one that takes all of the disparate elements into account and provides the “navigation,” if you will, in a sea awash in rudderless boats called apps, each sailing in a direction that is not guided by an understanding of the network of stars and, thus, has little chance of finding its way to a safe harbor.

Among the three of us, with a collective professional experience of nearly 100 years and lifetimes devoted to helping people and organizations, we envision an overarching navigation app. Marrying a body of knowledge and AI, we are excited about the promise of such an app not simply for its technical prowess but rather for its ability to access a data-driven decision-making process^[12] for CHROs to elevate the HR function (and we would argue that HR has seldom been more critical or more valuable) and deliver on its promise of driving stakeholder value.

Until then, prioritization will be the most effective approach to making sense of this brave new world.

Let’s offer four concrete suggestions for prioritizing genAI HR apps.

Define desired stakeholders and outcomes. For some time,¹¹ we have said that HR is less about HR and more about the value HR creates for others. This logic facilitates prioritization. Prioritizing the most essential genAI HR apps starts by defining desired outcomes for key stakeholders. Stakeholders are the “humans” in “human resources” who receive value that matters to them (with trackable indicators).

- - Employee experience and value proposition (sentiment and productivity).
  - Executives’ ability to design and deliver strategic goals (strategic realization).
  - Customer purchases (net promoter score; revenue per customer).
  - Investor confidence (intangible value and business financial results).
  - Community reputation (firm identity and brand).

The value of a genAI app is less about the information it provides and more about the impact of that information on creating value for the key stakeholders. Prioritizing¹² genAI HR apps based on their impact on stakeholders focus on impact more than activity.

Rely on an integrated framework to organize apps. We have shared how information turns into impact with a taxonomy¹³ that organizes complexity into simple patterns that standardize ideas, ensure integration^[4], facilitate decision-making, cumulate insights, and improve reporting. Our work has advocated the human capability framework to organize the thousands of HR apps, agents, and tools into four domains (talent, leadership, organization, HR) and thirty-eight initiatives (Figure 1). By having a way to organize the overwhelming number of apps into these categories, HR leads can make sure that a range of HR investments are made and that not all apps are in one domain^[13] or initiative.

Figure 1. Four Domains and Thirty-Eight Initiatives of Human Capability.

Determine which genAI apps best deliver stakeholder value. When someone proposes an app, ask to see the expected impact on key stakeholders and the confidence in predicting that impact. We have done this “guidance” work with surveys, which gather perceptions of HR activity and stakeholder value. This work has been instrumental in prioritizing where to invest in talent, leadership, organization, and the HR department.

In the future, we believe AI can be used to prioritize genAI. For example, score how an organization deploys human capability initiatives beyond relying on surveys by using not only public disclosure data (e.g., SEC reports,¹³ media reports, or earnings calls) but also internal information (board and executive committee minutes, executive presentations, performance management information, training and development programs, and other communications). These AI assessments will prioritize the proliferation of genAI HR apps.

Build a guidance system on existing HCM platforms. To evolve proliferation to prioritization, we suggest that the large HCM platforms include prioritization AI tools and apps. Rather than create a free-standing and isolated decision platform, we advocate integrating prioritization algorithms and apps into existing platforms. When clients want to access the profusion of genAI HR apps, they could gain guidance by knowing which of the many apps (in the human capability framework) will deliver the most stakeholder value. This information navigates genAI choices like a menu guide where to shop in a big box store or a usage algorithm^[8] that helps determine which apps to download^[9] and keep.

Conclusion

Proliferation offers an abundance of innovative ideas but can lead to being overwhelmed and lacking clarity about where to invest. Prioritization filters the opportunities into priorities that deliver value.

We hope genAI for HR continues to proliferate, as innovation is so important. However, we hope that genAI service providers also take responsibility for prioritizing so that progress occurs and HR apps have a valuable impact.

ENDNOTES

¹ How many apps do you really need for your iPhone? CNET, https://www.cnet.com/culture/how-many-apps-do-you-really-need-for-your-iphone/, Matt Asay, January 11, 2010

² Mobile App^[10] Industry Statistics 2023: Trends and Insights You Shouldn’t Ignore, RipenApps, https://ripenapps.com/blog/mobile-app-industry-statistics/#:~:text=Currently%2C%20there%20are%208.93%20million,app%20downloads%20daily%20last%20year. Ishan Gupta, August 16, 2023

³Global Artificial Intelligence^[2] In HR Market Size & Outlook, Horizon Grand View Research, https://www.grandviewresearch.com/horizon/outlook/artificial-intelligence-in-hr-market-size/global

⁴ AI for HR: How artificial intelligence is transforming, SAP, May 16, 2024, https://www.sap.com/resources/ai-for-hr#:~:text=Generative%20AI%20helps%20workers%20with%20more%20complex,author%20job%20descriptions%20and%20create%20new%20roles.

⁵ What Generative AI^[5] Means for Business, Gartner, https://www.gartner.com/en/insights/generative-ai-for-business

⁶ Is It Time for HR to Evolve “Know the Business” to “Stakeholder Value”? LinkedIn, Dave Ulrich, June 11, 2024, https://www.linkedin.com/pulse/time-hr-evolve-know-business-stakeholder-value-dave-ulrich-ssufc/

⁷How to Increase HR Contribution by Focusing on Lead Indicators (Stakeholder Value) More than Lag Outcomes (Business Financial Results), LinkedIn, Dave Ulrich, December 10, 2024, https://www.linkedin.com/pulse/how-increase-hr-contribution-focusing-lead-indicators-dave-ulrich-zttbc/

⁸ The Rapid Evolution of GenAI for Human Capability: From Assist to Inform to Guide to Deliver, LinkedIn, Dave Ulrich, May 14, 2024, https://www.linkedin.com/pulse/rapid-evolution-genai-human-capability-from-assist-inform-dave-ulrich-fz9uc/

⁹ How are You Doing at AI for HR? A Ten-Item Assessment to Evaluate Your Progress, LinkedIn, Dave Ulrich, June 25, 2024, https://www.linkedin.com/pulse/how-you-doing-ai-hr-ten-item-assessment-evaluate-your-dave-ulrich-jrxhc/

¹⁰ Generative AI In HR Market Size, Share, and Trends 2024 to 2034, Precedence Research, October 24, 2024, https://www.precedenceresearch.com/generative-ai-in-hr-market#:~:text=The%20global%20generative%20AI%20in%20HR%20market,CAGR%20of%2015.77%%20between%202024%20and%202034.

¹¹ What Value Am I Creating For Someone Else?, LinkedIn, Dave Ulrich, October 25, 2016, https://www.linkedin.com/pulse/what-value-am-i-creating-someone-else-dave-ulrich/

¹² Prioritizing Human Capability Investments: Separating Signal from Noise, LinkedIn, Dave Ulrich, July 11, 2023, https://www.linkedin.com/pulse/prioritizing-human-capability-investments-separating-signal-ulrich/?published=t

¹³ How Effective are Your Human Capability Investments and Disclosures?, LinkedIn, Dave Ulrich, October 3, 2023, https://www.linkedin.com/pulse/how-effective-your-human-capability-investments-dave-ulrich/

Dave Ulrich, Rebecca Ray & Alan Todd

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Defined Terms

1. ↑ human capital management.

Human capital management (HCM) is the comprehensive set of practices for recruiting, managing, developing and optimizing the human resources of an organization.

2. ↑ Artificial Intelligence [AI] ( Artificial Intelligence )

The simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using rules to reach approximate or definite conclusions) and self-correction. The simulation of human intelligence in machines that enables them to perform tasks such as learning, reasoning, and problem-solving.

3. ↑ information.

The by-product of having data in an HR System. Data is gathered and reviewed providing information for decision making.

4. ↑ integration.

A process concerned with joining different subsystems or components as one large system. In HR, integration allows organizations to combine the various applications relating to the management of their workforce and their core business so they work effectively together for the best results. The term that describes what happens when two applications are able to communicate with each other and exchange information.

5. ↑ Generative AI ( Generative AI )

Artificial intelligence techniques that enable the creation of new content or data based on existing patterns and examples.

Dave Ulrich

Rensis Likert Professor at the Ross School of Business at The University of Michigan - The RBL Group | + posts

Dave Ulrich

Dave Ulrich is the Rensis Likert Professor at the Ross School of Business, University of Michigan and a partner at the RBL Group (http://www.rbl.net) a consulting firm focused on helping organizations and leaders deliver value. He has published over 200 articles and book chapters and over 30 books. He edited Human Resource Management 1990-1999, served on editorial board of 4 other journals and on the Board of Directors for Herman Miller (16 years), has spoken to large audiences in 90 countries; performed workshops for over half of the Fortune 200; coached successful business leaders, and is a Distinguished Fellow in the National Academy of Human Resources. He is known for continually learning, turning complex ideas into simple solutions, and creating real value to those he works with in three fields.

Organization. With co-authors, he has influenced thinking about modern organizations (Reinventing the Organization) by empirically showing how organization delivers 4 times business results over talent (Victory Through Organization),defined organizations as bundles of capabilities (Organization Capability)and worked to delineate capabilities of talent management (Why of Work; Talent Accelerator),culture change (GE Workout),learning (Learning Organization Capability),and collaboration (Boundaryless Organization).

Leadership. With colleagues, he has also articulated the basics of effective leadership (Leadership Codeand Results Based Leadership),connected leadership with customers (Leadership Brand),shown how leadership delivers market value (Why the Bottom Line Isn’t),shapes investor expectations with an ability to measure leadership (Leadership Capital Index),and synthesized ways to ensure that leadership aspirations turn into actions (Leadership Sustainability).

Human Resources. He and his colleagues have shaped the HR profession and he has been called the “father of modern HR” and “HR thought leader of the decade” by focusing on HR outcomes, governance, competencies, and practices (HR Champions; HR Value Added; HR Transformation; HR Competencies; HR Outside In). He spearheaded a “gift” book on the future of HR (The Rise of HR) distributed to over 1,500,000 HR professionals), in which 70 thought leaders freely shared their insights.

Most recently, he posts new articles and insights each Tuesday on Linkedin (over 170).

Dave and Wendy live in Alpine, Utah, have 3 children and 10 grandchildren.

e-mail: dou@umich.edu

Rebecca Ray

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Rebecca Ray is an accomplished executive coach and consultant with experience in both corporate and not-for-profit leadership with prior executive roles at several Fortune 50 companies. Her expertise comes from varied experiences including working directly with business line leaders to assess, select, develop, coach and place Private Client branch managers and division leaders at two top-tier, global financial services firms as well as assessing and overseeing the multi-year targeted development of the entire C-Suite and their direct reports at a global technology company in the payments industry. A certified Marshall Goldsmith Stakeholder Centered Coach, Rebecca brings her passion about building great leaders to each coaching engagement and is represented by Marshall Goldsmith’s 100 Coaches Agency. Rebecca is a Human Capital Consultant, and is on the Harvard Business Review Advisory Council and is The Conference Board’s Human Capital Center Leader Emerita. She can be reached at Rebecca@RebeccaLeaRay.com.

Alan Todd

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Alan Todd is an education entrepreneur focused on solving organizational learning and leadership problems for large enterprise organizations. As a senior advisor to both public and private EdTech companies, he lives his life’s purpose of growing leaders who grow organizations that change the world.

Over the past 30 years, Alan founded and led three education technology companies that were acquired by larger, public companies: CorpU, a leadership development platform, acquired by Udemy, KnowledgePlanet, a learning management system, acquired by W Capital, and KnowledgeSoft, a Tech Skills Bootcamp, acquired by Randstad. Todd is a Co-Founder and Founding Trustee of Harrisburg University, the first new, non-profit university in PA in over 100 Years. He served on the Commonwealth of PA’s Higher Education Commission, served as a Wharton Entrepreneur-in-Residence, and served as a Trustee for Dickinson College. He was named Inc. Magazine / EY Entrepreneur of the Year for High Technology. He completed his master’s and doctoral studies in Learning Leadership at the Wharton School of Business and the Graduate School of Education at the University of Pennsylvania. He can be reached at alandtodd@gmail.com.