#HumanResources has already experienced rapid upgrades in technology and automation over the past few decades — but #AI has the potential to be even more transformative.
We explore the role of AI in HR, including how teams are using it, its benefits, and some of the concerns and considerations all businesses should note down.
💥 How does AI impact HR?
Josh Bersin
, Global Industry Analyst in the field of HR, sums it up:
“While it’s still early days, I believe AI (and Generative AI in particular) is going to radically change the HR Tech landscape. Not only will systems be intelligent by design, they will have powerful conversational user interfaces, they will embed multiple AI models, and new disruptors will appear.”
Currently, AI in HR is used to influence, dictate, and determine various processes along the employee lifecycle — e.g. payroll, interview scheduling, and benefits administration — but it can do so much more…
⚡ AI in HR today
1. Recruitment and talent acquisition 👥
- What it does: With AI-powered tools, HR teams can automate tasks and streamline candidate sourcing and selection, cutting down time to hire.
- What else it can do: From posting jobs to analyzing resumes to sending job offers, there’s room for AI to make improvements across the board.
2. Employee onboarding and training 🚀
- What it does: Implementing AI in onboarding and training makes it easier on both the HR team and the employee, as it can walk the employee through everything they need to do without constant HR intervention.
- What else it can do: AI can then continually support with training, even deliver training programs personalized to each employee or new hire’s needs. Using an internal AI-powered chatbot can offer continuous employee support while also enabling easier knowledge sharing.
3. Performance management and employee engagement 🎯
- What it does: AI can facilitate continuous real-time performance tracking, providing HR teams with accurate and objective insights on employees. Managers are able to use this to provide timely and constructive feedback that is based on objective data and improves employee productivity and engagement.
- What else it can do: At the same time, AI-driven analytics can play a role in measuring employee engagement and satisfaction, opening up even more opportunities for HR to promote employee loyalty and prevent high rates of labor turnover.
4. HR analytics and data-driven insights 📊
- What it does: AI enables HR to glean actionable insights by analyzing large HR datasets.
- What else it can do: It adds the capability of predictive analytics, helping teams to determine future patterns (e.g. an impending increase in turnover or future business-wide skills gaps). As a result, HR can use AI to forecast the need for future hiring programs or proactively develop plans to upskill the existing workforce.
✨ The benefits of AI for HR teams
Utilizing AI offers a number of benefits for the HR function, including:
- Efficiency — By automating repetitive and time-intensive tasks AI frees up time for HR teams so they can focus on value-adding activities.
- Better and fairer decision-making — The data-driven insights and predictive analytics ensure that HR teams are making the best decisions possible. It can also be used to make fairer decisions by minimizing bias in the hiring process.
- Improved employee experience — When HR teams have more time to spend on value-adding tasks, they can improve the everyday experience of employees.
- Cost savings — According to the McKinsey Global AI Survey, HR respondents who have adopted AI said this resulted in both reduced costs and increased revenue.
💭 Considerations and concerns for AI and HR teams
Ethical concerns, transparency and accountability, and regulatory frameworks are all things to consider when implementing AI within HR functions.
- Ethical concerns — AI algorithms can perpetuate and amplify biases present in the data used for training. Businesses need to ensure that their AI systems are designed and trained to be fair and unbiased — for instance, the systems being used to screen resumes for hiring. Regular monitoring and auditing of AI models is essential.
- Privacy concerns — Additionally, HR functions deal with sensitive employee data, and businesses must prioritize the privacy and security of this information. Adequate data protection measures, such as encryption and access controls, must be in place to safeguard employee privacy.
- Transparency and accountability — AI is not all-powerful; it has limitations like every other technology, so AI algorithms must be designed to provide explanations for their decisions. Ultimately, critical decisions, such as hiring or performance evaluations, should involve human judgment and not be solely reliant on AI systems.
Businesses should also consider engaging with experts in the field, conducting regular audits, and staying informed about the evolving legal and ethical landscape surrounding AI in HR to ensure compliance and ethical practices.
Ready to take the first steps in leveraging AI to support your organization? ✨
