Only 5% of Firms Are Winning with AI, What HR Can Learn

Welcome Back, Future of Work By HR Stacks!

We cut through the noise to bring you the most important updates in HR Tech, AI, and the changing world of work. From new AI colleagues clocking in to shifts in workforce strategy, here’s what you need to know this week.

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In Today’s Edition:

A sweeping new report from Boston Consulting Group (BCG) has put the brakes on AI euphoria, revealing a sobering truth: only about 5% of companies are realizing tangible business value from their AI initiatives, despite massive global investment and adoption.

BCG analyzed more than 1,250 organizations across industries and found that while nearly every firm has launched an AI strategy, the vast majority have yet to see measurable returns in productivity, revenue, or operational efficiency.

Over 60% of respondents admitted to seeing little to no gains from their AI projects to date.

The findings highlight a growing gap between aspiration and execution, where AI pilots abound, but few scale effectively or integrate meaningfully into workflows.

According to BCG, most companies remain stuck in the experimentation phase. They’ve invested heavily in data infrastructure, governance, and tools, but are falling short on the organizational shifts required to translate AI into real business outcomes.

The report cites three critical challenges:

Despite record AI spending, the disconnect is widening. Organizations are under pressure to show returns, yet most remain dazzled by the technology rather than disciplined about its application.

BCG found that firms chasing “AI for AI’s sake” often suffer from fragmented data systems, unclear ROI metrics, and internal resistance from teams unsure how the technology fits into their jobs.

The minority of firms realizing strong AI value share a few common traits:

These organizations view AI not as a standalone technology, but as part of a larger transformation that includes process redesign, cultural change, and upskilling at scale.

Read More Here →

BambooHR’s Connect 2025 event unveiled over 30 innovations redefining how HR teams hire, manage, and empower people worldwide. From AI-driven insights to global employment tools, the Utah-based company positioned itself at the forefront of intelligent, human-centered HR technology.

BambooHR has launched “Ask BambooHR,” an AI assistant that delivers instant insights, HR answers, and AI-generated feedback summaries.

The company also rolled out Remote-powered EOR for seamless global hiring and payroll, alongside VirgilHR compliance intelligence, new compensation benchmarks across six countries, and smarter hiring tools featuring LinkedIn job ads, candidate self-scheduling, and goal alignment.

Celebrating HR Changemakers

The event honored six professionals with the HR Experience Maker Awards, each receiving a $2,000 vacation stipend for their leadership and innovation in improving workplace culture. Winners represented companies such as Mills CNC, Saxbys, QS Quacquarelli Symonds, and Anaqua, recognized for transforming their HR practices and advancing employee well-being.

Key Takeaways:

Why It Matters:

As AI reshapes industries, BambooHR is redefining the balance between automation and empathy. By merging data, global reach, and people-first design, it signals the next era of HR, one where technology amplifies humanity, not replaces it.

Read More Here →

OpenAI and Meta are cautious; MIT finds 95% of generative AI pilots generate no real ROI; sentiment among heavy users is becoming more negative. Read More

What For HR Leaders: Don’t buy into every shiny AI tool, pilot carefully, measure ROI, and focus on use cases tied directly to business outcomes.

Dayforce introduced new AI agents to automate admin work, streamline HR workflows, and deliver real-time insights for smarter workforce planning and performance tracking. Read More

What For HR Leaders: Test agent-based tools for repetitive tasks, connect insights to business metrics, and ensure AI augments, not replaces, human decision-making.

At the Oct. 2 council meeting, HR reported 233 full-time and 81 part-time employees; 94% staffing, 92% retention (FY24/25), and a 14% overall turnover rate; highlighted 2025 personnel policy updates, supplemental benefits, wellness screenings, and paperless onboarding. Read More

What For HR Leaders: Track cohort retention, push digital onboarding, support vital part-time roles, align policy updates with operations, and use benefits to boost retention.

Dubuque-based Honkamp acquired Smart-HR, keeping its seven-person Rochester team and elevating founders Joel Goodew and Josh Haynes into leadership, expanding Honkamp to 37 employees and a downtown office. Read More

What For HR Leaders: Early-career pipelines need redesign, invest in reskilling programs, and alternative entry points to prevent long-term talent gaps.