Authors: Nathalie Francisci Michelle Moore
The concept of "build it and they will come" is flawed when applied to an organization's adoption of complex technologies such as generative artificial intelligence (GenAI). While the Information Technology (IT) team takes the lead on technology implementations, the Human Resources (HR) team is best positioned to help employees adapt to and adopt new technology-supported processes and mitigate risks. However, the chief human resources officer (CHRO) doesn't sit at the C-suite table in many organizations, leaving IT to manage user adoption of GenAI.
To be successful, HR and IT must assume co-ownership and accountability for the workplace rollout and adoption of GenAI. In our experience, CHROs may need to push their way to the table to advocate for change management and their role in the process.
In this second part of our examination of HR's role in adopting GenAI, we explore key elements of a GenAI change management strategy and why an HR-IT collaboration is essential to success. (Read part 1 to learn about the risks and benefits of GenAI).
Why change management is critical to GenAI user adoption
In our consulting experience, change management encourages employee engagement, minimizes disruption, and improves the return on investment.
An effective change management strategy addresses the technical, organizational and human challenges associated with introducing transformative technology such as Open AI's ChatGPT and Microsoft CoPilot. Such a strategy helps overcome the adoption barriers identified in part 1 of this series.
Technical challenges
Integrating GenAI into existing workflows requires changes in data processes and tools. GenAI models rely on massive amounts of high-quality data to function effectively. Training the model will be difficult if the organization's data is incomplete, incompatible or siloed in multiple sources. Compatibility and integration with existing software where data resides on different platforms is a related challenge. Implementation teams will need to test for potential problems, including real-time performance.
Organizations must deploy sufficient computing memory and storage to support the GenAI training model. Scaling GenAI solutions for future needs while maintaining performance will be difficult if the current infrastructure can't meet the demand.
Organizational challenges
GenAI is a strategic asset that can help drive productivity and innovation. Change management works to align the technology with organizational goals, using monitoring, feedback and support to help employees adapt and use the technology to achieve those goals. However, GenAI introduces new risks associated with security and data privacy. Your change management strategy should include identifying and mitigating risks, while ensuring the organization's use of GenAI complies with regulatory and industry guidelines and ethical practices.
Human challenges
Expect some employees, including leaders, to fear that the technology will replace them or require significant workflow changes. Education and training will help teams understand how GenAI works and how it can improve their productivity.
Instilling a culture of innovation and openness is most critical for successful GenAI adoption. At its core, GenAI is about collaborating and sharing knowledge. A well-crafted change management strategy will address silo thinking and other challenges, facilitating technology adoption and governance.
Enabling HR-IT collaboration
An HR-IT collaborative approach may seem initially like mixing like oil and water. Yet, the teams share a primary goal of maximizing business performance, with IT leveraging technology and HR maximizing human capital.
A successful HR-IT collaboration around GenAI implementation will draw on both groups' strengths, with HR accountable for productivity and employee engagement measures and IT accountable for adoption rates and data security. Introducing GenAI into the organization raises technical, policy (governance) and cultural issues that require multiple stakeholder engagement. Direction on shared HR and IT accountability must come from board leadership or the CEO.
Securing leadership support
A recent ranking of corporate board priorities for 2024 found that 64% of directors ranked "innovation and evolving technologies" among the top five, with 24% naming it as the number one or two priority.1 These high rankings conflict with the low percentage of organizations planning to implement GenAI — one of the most high-profile evolving technologies. Leaders of many small- to mid-size organizations hesitate to jump onto the GenAI bandwagon, possibly because of low tech-savviness or the lack of a well-defined value proposition. Either way, a lone CHRO may struggle to advocate successfully for GenAI introduction.
To generate leadership support for GenAI, develop a strong business case that communicates the return on the investment. Engage the CIO and CFO to demonstrate positive impact on organizational key performance indicators. Choose a limited number of use cases to illustrate that align closely with organizational goals and result in measurable improvements. Avoid overwhelming board leaders with too much information.
Be prepared to address the impact on the employee, including fear around job loss or control. Statistics Canada data shows that among those organizations using or planning to use GenAI, most saw value in its ability to accelerate creative content development (68.5%), automation without eliminating jobs (46.1%), improve client/customer experience (37.5%) and achieve cost efficiencies (35.1%). Only 12.8% saw its value in automating tasks to replace employees.2
Building a collaborative change management strategy
By leveraging the strengths of both HR and IT teams, organizations can accelerate the adoption of GenAI, and drive productivity and innovation. Consider these components as part of your change management strategy.
Use existing and innovative platforms to train employees
Create a comprehensive training program that covers GenAI's technical aspects (IT) and practical applications (HR). HR can identify specific needs while IT provides the technical know-how. Training components might include hands-on workshops, one-on-one mentoring, online tutorials, how-to guides and FAQs. Take advantage of existing learning platforms, but be open to innovative approaches that leverage GenAI technology.
Demonstrate Gen AI value with case studies
Tailor successful GenAI case studies relevant to each group. Provide an internal platform for employees to share experiences and lessons learned. As an exercise, challenge employees to find answers to questions using GenAI and compare the results to demonstrate how to craft an effective prompt.
Case study: Low participation in AI pilot
The situation: An organization conducting a pilot of Microsoft Copilot struggled to drive user adoption. To support the launch, leaders organized general training led by Microsoft and created a Teams channel for the pilot community to share insights and lessons learned. The pilot group struggled to find ways to use Copilot for their specific functions. Because everyone was busy with their day jobs, only a few shared actively in the Teams channel.
Gallagher's response: Because Copilot features and functionality can be overwhelming, we recommended starting with how the new technology can address business problems. We proposed dividing pilot participants into smaller cohorts aligned by function and asking functional teams to identify their cohort's best applications. Each team documented those best practices in anticipation of the organizational launch.
Leverage digital leaders and champions
Digital leaders can establish and communicate a digital vision, while "champions" can foster enthusiasm and bridge the gap between technical capabilities and practical application.
Digital leaders can demonstrate how to use technology in their decision-making processes and encourage others to do the same. Champions can create enthusiasm for learning. Empower them with advanced training including any proprietary system and platforms to share their insights live or online. Tap champions to lead and monitor forums where employees can ask questions.
IT can offer coaching and technical support
While champions can generate enthusiasm for GenAI and help build user communities, IT expertise will support employees struggling with technical issues. FAQs and user guides can help new users. HR can review the information to ensure it's user-friendly for a "non-techie" and facilitate employee feedback. Live IT support is also essential to assist an employee in real time.
Accelerate progress with rewards and recognition
Recognition programs help foster a culture that embraces new technologies and continuous learning. Showcase successes on internal forums and use existing structures to reward employees. Consider naming an AI "user of the month." Highlight successes that align with organizational goals, but don't limit recognition. Rewarding even unsuccessful effort acknowledges the GenAI learning curve and that it's okay if you don't get it right the first time.
Case study: Lagging digital leadership
The situation: A consumer goods company acknowledged that it lagged in digital mindsets and leadership. Although teams used predictive analytics, they hadn't widely adopted emerging GenAI tools. During our needs assessment, we discovered that rapid growth caused the organization to fall behind in a data strategy. Due to siloed data, they couldn't leverage GenAI tools.
Gallagher's response: We facilitated a half-day workshop for the executive leadership team on the importance of becoming digital leaders. Those with such a mindset understand how emerging technologies such as communication and collaboration tools can maximize productivity. We discussed the importance of a data strategy and identified immediate next steps to prepare for GenAI adoption.
If senior leaders fail to engage and demonstrate their commitment to using GenAI, mid-level and frontline managers will follow their lead. Frontline managers are well-suited to drive GenAI adoption through example and support. Empower them with the necessary training and tools.
Choose the right measures for success
The best assessment of GenAI user adoption includes quantitative numbers and qualitative insights to help you understand the technology integration and impact on business objectives as well as employee experience.
Quantitative metrics. Start with basic metrics such as the percentage of employees using the organization's GenAI tool, the number of new users and the frequency of use in a given period. Productivity and efficiency metrics such as time saved and improved accuracy can help solidify board or investor support.
Qualitative metrics. Qualitative metrics are valuable — especially when advocating for more resources to support GenAI adoption. Survey employees on GenAI ease of use and usefulness. Identify areas of interest or concern and conduct focus groups for further feedback. Assess participation levels in user forums and invite input from champions and trainers about employees' engagement with GenAI.
Impact metrics. As the organization becomes more sophisticated in its use of GenAI, look for ways to measure the correlation between GenAI adoption and revenue or market competitiveness. The number of new products, services or solutions introduced using GenAI is a powerful impact metric, as is the number of process improvements or innovations.
Communication is critical
A regular feedback loop that enables employees to share their experiences with GenAI is vital to change management strategy. HR teams can analyze this feedback and identify areas for improvement, with IT employees adjusting the tools and training. Use existing communication channels to create general awareness about GenAI, update stakeholders on the adoption progress, and celebrate successes.
Ensure compliance using targeted governance
As discussed in part 1, GenAI creates risks. Before rolling out new GenAI tools, develop policies to govern their use, including regulatory compliance, data privacy and security. HR should focus on compliance with organizational values and company policies, while IT ensures the technical feasibility and policy enforcement. Create a governance committee comprised of representatives from HR and IT and other stakeholder groups to oversee the implementation.
Pilot GenAI tools before implementing organization-wide
Introducing GenAI into your organization can be overwhelming and a little scary. Start with one or two pilot projects. The outcomes may determine support to continue and provide a framework for organizational rollout, so choose projects carefully. The best pilot projects will require both HR and IT support.
Define objectives. Describe what you hope to achieve with the pilot, such as, improve efficiency, reduce cost, and build innovation.
Select appropriate test cases. The pilot can address a well-defined problem, repetitive functions or opportunities for innovation. The project should be technically feasible with the necessary data, resources and expertise. Be mindful of potential disruption. Conducting a pilot project in accounting in December as teams work to finalize year-end financials will likely create stress and resistance.
Document findings. Plan how you will document lessons learned from the pilot, including what worked and what didn't, and capture participant insights. This information will help to scale your strategy.
Plan for scaling. Assuming the pilot is a success, prepare to use the momentum to roll out to other areas of the organization. The plan should address any known or potential challenges, such as resource requirements or areas requiring change management.
Gallagher can help
Our team of HR consultants is here to help you explore the potential benefits of integrating AI into your HR strategy and practices. We offer personalized advice and tailored solutions to meet your organization's specific needs. Start the discussion and gain powerful insights.
