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Firms urged to use AI to enhance employee experience, rather than cost-cutting

by Emma Simon
29/10/2025
Woman using AI, AI analysis, AI and HR, technology, benefits
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Profitable companies are more likely to use AI to enhance the employee experience, when compared to lower-performing competitors.

This was a key finding from research by the Top Employers Institute, which found a 7 per cent difference between these two groups when it comes to using AI to benefit employees.

However the report found that many organisations are struggling to keep pace with the pace of change when it comes to this new technology.

Overall the report found that almost half (48 per cent) of these organisations are already piloting, implementing, or have fully established a process for ‘responsible’ AI deployment, with almost two in five (39 per cent) businesses see AI as an opportunity to enhance employee experience, rather than just a mechanism to cut costs.

Its report ‘AI-Powered Leadership: The blueprint for uniting human insight with intelligent technology’ , found that as AI adoption accelerates, organisations face a critical inflection point – where leadership must evolve to ensure technology amplifies, rather than replaces, human potential.

Research from McKinsey shows that globally almost four in five firms (78 per cent) now use AI in at least one business function.

Top Employers board member Adrian Seligman says: “AI is redrawing the architecture of organisations faster than most leaders can adapt to. The leaders who will thrive are those who can design systems where technology amplifies judgment, empathy, and purpose, underpinned by sound ethics.”

He adds: “HR leaders have a responsibility to be the catalysts of this change, empowering senior executives and boards to harness AI in ways that augment human potential. 

“Those that fail to redesign leadership for the AI era risk building faster systems on outdated foundations, hampering revenue growth potential.”

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Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

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Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

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Benefits Unboxed – Hybrid work: reality versus rhetoric
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