In the Know or in the No... delivering predictive insights believing in, and driving, digital agenda reshaping the workforce enhancing the employee experience Common characteristics: HR not seen as value driver HR not using predictive insights generally timid of AI no digital plan in place (and not planning to) Thrive in digital era 37% of HR Leaders are very confident in HR’s ability to transform the workforce and itself Anticipate change Exist in digital era 39% of HR Leaders are confident in their ability to transform the workforce and itself Respond to change Struggle to adapt to digital era 24% of HR Leaders are less or not confident in their ability to transform the workforce and itself Ignore change Common characteristics: Are you HR growth and excellence HR extinction © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. who have invested in AI call the investment worthwhile 50% 42% In the Know: Top 3 barriers to completing a digital transformation: 1. skill deficiencies 2. talent shortage 3. workplace culture About two-thirds agree that HR has undergone or is undergoing a digital transformation agree that preparing the workforce for a future with Artificial Intelligence is one of the biggest challenges HR will face over the next five years admit to being “not at all prepared” to respond strategically as AI and machine learning emerge HR execs who believe HR has a strategic role in their business are more likely to be pursuing digital transformation 67% More are planning investments in areas such as predictive analytics (60%), enhanced process automation (53%) and artificial intelligence (47%) 88%

Thrive in digital era (47%) In the Know or in the No · HR not seen as value driver HR not using predictive insights generally timid of AI no digital plan in place (and not planning

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In the Know or in the No...

delivering predictive insights

believing in, and driving, digital agenda

reshaping the workforce

enhancing the employee experience

Common characteristics:

HR not seen as value driver

HR not using predictive insights

generally timidof AI

no digital plan in place (and not planning to)

Thrive in digital era

37% of HR Leaders are very confident in HR’s ability to transform the workforce and itself

Anticipatechange

Exist indigital era

39%of HR Leaders are confident in their ability to transform the workforce and itself

Respond tochange

Struggle to adapt to digital era

24%of HR Leaders are less or not confident in their ability to transform the workforce and itself

Ignore change Common characteristics:

Are you

HR growth and excellence

HR extinction© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

who have invested in AI call the investment worthwhile

50%

42%

In the Know:

Top 3 barriersto completing a digital transformation: 1. skill deficiencies2. talent shortage3. workplace culture

About

two-thirds agree that HR has undergone or is undergoing a digital transformation

agree that preparing the workforce for a future with Artificial Intelligence is one of the biggest challenges HR will face over the next five years

admit to being “not at all prepared” to respond strategically as AI and machine learning emerge

HR execs who believe HR has a strategic role in their business are more likely to be pursuing digital transformation

67%

More are planning investments in areas