A recent conversation with a CHRO highlighted a common concern among HR leaders:
"We don't have millions of dollars to throw at AI initiatives in HR like big tech companies do."
This concern is valid. Many organizations do not have access to unlimited AI budgets, extensive product teams, or well-prepared enterprise data. However, implementing AI does not have to begin with a large-scale program.
A valuable lesson from private equity is to focus on value first. Before selecting an AI tool or determining which processes to enhance with AI, leaders should identify where value is being lost in current workflows.
This could involve addressing:
- Slow workflows
- Repetitive manual tasks
- Poor access to knowledge
- Inconsistent decision-making
- Handoffs that lack ownership
These challenges are not merely process issues; they are fundamentally about value.
I have written the first article in a three-part series on this topic: AI Lessons from Private Equity: Start with Value. The goal is not to suggest that every organization should mimic the private equity approach, but rather to emphasize the need for clearer value cases and a stronger alignment with the operating plan in AI initiatives.
The best AI initiatives don’t start with the technology; they start with a clear business problem. Instead of asking, “Where can we use AI?”, HR leaders should ask, “Where are we losing the most time and value today?”
When AI is tied to measurable business outcomes and ROI, even organizations with modest budgets can make meaningful progress. 6d ago