The world’s most trusted human capital advisory firm, The Josh Bersin Company, reveals how AI-powered talent intelligence systems are rapidly expanding, enabling companies to complete the shift from a job centric paradigm to a fully skills-based management model.
Most HR software was designed for the “pre-hire to retire” world of employment, a model that has all but gone away, says the research. AI-powered talent intelligence platforms, which model people around skills, are now becoming the new architecture for the entire HR technology market.
According to The Josh Bersin Company’s latest research study, The Emergence of Enterprise Talent Intelligence: Applying Skills Technology and AI at Work, this pivotal shift signifies an evolution from Talent Intelligence to a comprehensive Enterprise-wide Talent Intelligence.
The advent of Enterprise-wide Talent Intelligence is the technological cornerstone facilitating the realization of The Josh Bersin Company’s Systemic HR© concept and approach, recently unveiled as a paradigm shift in the HR domain.
An organization confirming the benefits of Enterprise Talent Intelligence is Coca-Cola Europacific Partners. Its VP People and Culture Global Operations, Digital Strategy and Northern Europe Business Unit BP, Nico Orie, states, “Combined with AI, Big Data allows us to create higher impact experiences and increased adoption that enables next-level skill demand and supply matching, talent development, and people energy.
He adds, “It’s not about a new system—it’s about a fundamental change of how we enable people and business value. We are breaking decades of shackles of a process and transaction-driven HR world to refocus where the true value lies: people.”
The research report chronicles the evolution of Talent Intelligence, beginning with its roots in 2010 when AI was first applied to enhance the modeling of the increasingly dynamic organizational structures that were emerging at that time.
Led by pioneering vendors such as Eightfold, Gloat, Lightcast, Seekout, Draup, Heidrick & Struggles, Degreed, Phenom, and others, the first wave of Talent Intelligence centered on inferring skills rather than traditional job-based competency frameworks. These systems, which amassed billions of employee profiles, proved that AI can powerfully improve sourcing, recruiting, career mobility, and even performance assessment.
Today, as hundreds of companies deploy these platforms, CHROS are realizing that talent intelligence is an enterprise-wide solution, disrupting and changing the market for core HR platforms, says Josh Bersin Company analysts.
This next phase goes far beyond talent acquisition, opening up Talent Intelligence for job architecture analysis, organizational design (such as, “Do these two business units seem to be replicating the same functional skills, so should we combine them?”), leadership assessment, pay equity audit, and in-depth examinations of sales performance, turnover rates, customer service, and even R&D output.
The Josh Bersin Company sees AI- and data-enriched Talent Intelligence to tackle on-going HR and transformation challenges, such as:
- building skills-based HR practices in every domain
- personalized and engaging employee development programs
- accelerating internal mobility, gig work, mentoring, and job sharing
- strategic workforce planning, location planning, and competitive analysis
- solving the vexing problem of pay equity in a highly dynamic workforce
- Identifying, assessing, and developing a new generation of leaders.
For periods of heightened mergers and acquisitions activity, The Josh Bersin Company maintains that Enterprise Talent Intelligence will help in facilitating data- and skills-based restructuring efforts.
The report also notes that several companies approached as part of the research are already using their enterprise talent intelligence systems to identify pay equity discrepancies by looking at AI-inferred skills, diversity metrics, and job level information.
Josh Bersin, global industry analyst and CEO of The Josh Bersin Company, says:
“Talent Intelligence has grown up, and it now threatens many of the incumbent HR technology vendors.
Consider any data-driven problem we have in HR: Why do we have high turnover in a given business area? What could be the factors driving low productivity in one area of the sales team? How do we identify functional leaders in technical domains? Who are the hidden ‘gurus’ in cyber security or data management we need for a new project?
Every one of these talent challenges can be solved with this new wave of Enterprise Talent Intelligence.
“Once organizations have all this data in one place, Enterprise Talent Intelligence accelerates the adoption of Systemic HR. No longer will companies need separate groups for L&D, recruiting, and rewards – they can all use this common, intelligent, system, disrupting many of the traditional HR tech markets.”
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