The Hackett Group’s 2025 Digital World Class HR research highlights how top-performing HR organizations leverage generative AI (Gen AI) to enhance employee engagement, operational efficiency, and business alignment. These leaders achieve 29% lower costs while supporting three times more employees, redefining HR’s role as a strategic business partner.
Digital World Class HR organizations cut costs by 29% versus peers.
Support three times more employees with Gen AI and automation.
Spend 2X more time on business-aligned talent plans with leaders.
2.4X more likely to be valued as a business partner by stakeholders.
Invest 2.3X more in self-service automation for HR processes.
57% more roles filled internally, aligning talent with business needs.
Digital World Class HR organizations operate at 29% lower costs than their peers while scaling to support three times more employees. By integrating Gen AI and advanced automation, these HR teams streamline routine tasks, freeing up capacity for strategic initiatives. This approach enhances workforce experience and drives business objectives without compromising efficiency.
Top HR organizations excel in aligning talent strategies with business goals. They dedicate twice as much time collaborating with line leaders on talent plans and are 2.4X more likely to be seen as valued partners by stakeholders. Additionally, they fill 57% more roles internally, demonstrating a strong focus on talent development tailored to organizational needs.
These HR leaders prioritize AI and automation, with 2.3X higher adoption of self-service tools for HR data, compliance, and reporting. They are twice as likely to align human capital management applications with enterprise goals, actively using 71% of software functionality to maximize ROI. This digital enablement fosters agility, allowing HR to adapt swiftly to workforce dynamics and regulatory changes.
“Digital World Class HR organizations aren’t just managing talent – they’re unlocking the full potential of their people with digital capabilities,” said Jessica Haley, principal and Global Human Resources Executive Advisory practice leader at The Hackett Group. “These organizations are showing what’s possible when you combine human insight with digital enablement and AI. They are not reducing the function; they are elevating the impact of HR. Amplifying the power of HR to drive stronger business outcomes at scale, fostering resilience, and leading the way in shaping the workplace and the workforce – that is Digital World Class HR and that is the future.”
The research provides a roadmap for HR transformation, emphasizing proactive workforce planning, intelligent automation, and skill development in data analytics and storytelling. Collaborating with AI-focused partners ensures ethical practices, while an integrated HR operating model enhances strategic value.
By leveraging Gen AI, Digital World Class HR organizations set a new standard for efficiency and impact. Their ability to align with business strategies, optimize operations, and foster agility positions them as leaders in shaping the future of work.
The Hackett Group, Inc. is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class performance. Using AI XPLR and ZBrain our ideation through implementation platforms – our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
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