Over 53% Indian retail firms are ready to embrace adopt AI by 2020 : study

Bangalore: Over 53 percent of CHROs (Chief Human Resource Officers) representing more than 500 retail enterprises in India believe that their HR vertical is still six quarters away from embracing AI in their daily work, according to a research conducted by PeopleStrong – a HR solutions and technology company based in Gurgaon.

One of the major reasons, as observed by around 59% of the respondent CHROs, is the absence of seamless flow of data between different HR functions as the information lies in silos and different platforms making it difficult to have a unified view of this data for better insights.

With this being said as the survey highlights, Indian organizations are expected to bridge this gap by 2020. Both Indian and global HR tech companies have already initiated this journey of revolutionizing the way Indian retail enterprises manage people and talent function.

PeopleStrong said it is transforming and advocating growing use of digital aids and has seen major benefits delivered by these transformations in some of the largest enterprises in Indian retail sector.

An indication of this development is the fact that 59.18% of these companies have started storing their HR data on cloud, with majority of them replacing legacy systems in recent past. Presently, only 24.49% spend more than $10 per employee and another 45% of these organisations’ report $ 5-10 spend which is bound to increase soon as their legacy systems move to cloud based transformative technology.

“There is a tremendous potential for this number to see a hike in the coming months. We are already seeing the change in the mindset of CHROs for adopting new age HR technology solutions shifting away from traditional ERPs,” said Prakash Rao, Founding Member and VP – HCM, PeopleStrong.

According to the India Retail Report released last September, India has replaced China as the top retail destination. his has led to an increased global participation, with Indian retail space witnessing a number of big ticket deals.

“We have also experienced lot of inbound requests in the HR tech space especially for AI and ML enabled solutions. In such a competitive scenario, it becomes important for these enterprises to augment their people and talent management competencies by integrating technologies like Artificial Intelligence (AI) in their everyday work. The motive behind conducting this research was to understand HR tech adoption by Indian retail enterprises and map the expected way forward.” added Rao.

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