Transforming HR Process Automation and Workforce Management with Generative AI-enabled HCM Suites

Enterprises leverage cloud human capital management (HCM) systems to automate HR workflows, streamline talent management, optimize workforce planning, and enable data-driven strategic decision-making. By integrating generative (Gen) AI, these systems validate payroll, ensure compliance with evolving tax regulations, offer personalized employee training, assist employees in navigating career opportunities, expedite content creation and summarization of job descriptions, support hiring managers in identifying suitable candidates, and automate workforce shift scheduling. In addition to incorporating Gen AI-powered features, the leading cloud HCM suite vendors are expanding industry-specific solutions for manufacturing, retail, healthcare, and construction sectors while strengthening core offerings in payroll processing, employee engagement, and talent development.

Both demand-side and supply-side trends are covered in our Cloud HCM Suites 2024–2025 Market Insights™ and Cloud HCM Suites 2024–2025 RadarView™, respectively. These reports present a comprehensive study of HCM vendors and closely examine market leaders, innovators, disruptors, and challengers.

Avasant evaluated 17 vendors using three dimensions: product maturity, enterprise adaptability, and innovation road map. Of these, we recognized 14 vendors who brought the most value to the market over the past 12 months.

The RadarView recognizes platform vendors in four categories:

• • Leaders: ADP, Oracle, SAP, and Workday
  • Innovators: Darwinbox, Microsoft, Paylocity, and UKG
  • Disruptors: Cornerstone, Dayforce, and Infor
  • Challengers: BambooHR, Paycom, and Sage

The following figure from the full report illustrates these categories:

“The integration of generative AI within HCM platforms marks a transformation from conventional HR processes to adaptive, employee-centric solutions,” said Ruth Steinberg, principal at Avasant. “This transformation enables personalized employee experiences while helping organizations make data-driven workforce decisions at scale.”

The reports provide a number of findings, including the following:

• • Cloud HCM adoption is rising, with over 40% of enterprises focusing on optimizing global payroll processes, unified reporting for workforce metrics and compensation data, and HR process automation and standardization.
  • Manufacturing, retail, and financial services sectors, accounting for about 40% of HCM demand, leverage HCM platforms for efficient workforce scheduling, multilocation employee management, and streamlined payroll for diverse shifts.
  • Cloud HCM vendors are expanding their horizontal solutions, emphasizing payroll management, employee engagement, and talent development to enhance workforce efficiency, streamline HR processes, and improve overall employee experiences.
  • These vendors are also increasingly leveraging generative AI capabilities to streamline recruitment processes by refining job descriptions and providing insights into candidate profiles. Additionally, it is being used for personalizing training and learning programs by tailoring content to individual skill levels and recommending career development pathways.

“Generative AI in HCM is redefining how enterprises manage workforce planning and talent acquisition,” said Amarabati Sen, principal analyst at Avasant. “By leveraging this technology, enterprises can automate recruitment processes and improve employee engagement and workforce shift management, leading to more efficient HR operations.”

The Cloud HCM Suites 2024–2025 RadarView™  also features profiles of the 14 HCM vendors, including their solutions and experience in assisting enterprises with HCM adoption.

This Research Byte provides a brief overview of Avasant’s Cloud HCM Suites 2024–2025 Market Insights™ and Cloud HCM Suites 2024–2025 RadarView™.  (click for pricing)