Will you transform HR with AI?

Automation is both empowering and alarming. And today's increasingly sophisticated forms of automation, as shown in the rapid advance and development of AI, can have extensive implications for the HR function – both positive and negative allowing HR to make more informed decisions.

It is likely that the use of AI in HR will continue to grow. As organisations face increasing pressure to remain competitive and efficient, they will look for ways to automate and streamline HR processes using AI technology. This will enable HR teams to focus on higher-value tasks, such as talent development and job redesigning.

Multiple areas can be transformed

Experts and media have varying opinions on the role of AI in HR. Some experts argue that AI has the potential to revolutionise HR processes and improve efficiency and fairness. Others caution that AI is not a silver bullet and must be used responsibly and ethically to avoid perpetuating biases and discrimination.

HR leaders opine at learning events that AI will become a vital tool for HR processes this year. AI can help automate repetitive tasks, analyse data, and make predictions based on that data,

One area where we may see significant growth is in the area of employee engagement. AI can be used to analyse employee data, such as survey responses and social media activity, to gain insights into what motivates employees and how to keep them engaged. This can lead to improved job satisfaction, higher retention rates, and a more productive workforce.

Indeed, there exists the potential to transform in many ways starting with the recruitment process itself. Automate the talent acquisition process by analysing resumes, screening candidates, and conducting initial interviews. This can save time and reduce the risk of human bias in the selection process, and is much faster and cheaper as we have seen with humanoids like EvueMe, a solution that can perform all these tasks with great accuracy.

Performance management is another key area ripe for transformation. AI can track employee performance and provide feedback in real-time. This can help identify areas for improvement and provide personalised learning and development opportunities. The natural extension of this is into employee engagement processes. AI can be used to analyse employee data and identify areas for improvement. For example, AI can predict which employees are at risk of leaving and suggest personalised interventions to improve retention.

In the quest for better employee experience, HR can introduce AI and Metaverse-based onboarding to start with and extend the same to learning and development programmes. In addition chatbots and virtual assistance can be useful for providing instant support to employees on HR-related issues. The use of AI for HR analytics can help predict trends related to employee performance and other key focus areas.

AI will bring many benefits

There are various AI tools available for HR today that can help with different aspects of human resources management. Applicant tracking systems or ATS is useful to scan resumes and match candidates to job descriptions, helping to quickly filter through a large pool of applicants and identify top candidates. Video interviewing platforms provide insights on candidate personality, communication skills, and emotional intelligence. HR chatbots use natural language processing and machine learning algorithms to provide quick answers to HR-related questions, such as benefits, company policies, and other general inquiries.

There are employee engagement tools that can analyse employee engagement data to identify potential issues and recommend solutions, predictive analytics tools that use historical data to predict future outcomes such as employee turnover and help make data-driven decisions, performance management tools that can help managers evaluate employee performance by analysing data from various sources such as productivity metrics and peer feedback, and diversity and inclusion tools to analyse hiring and promotion data to identify potential biases and recommend ways to improve diversity and inclusion in the workplace.

Overall, the shifting of HR towards a more sophisticated use of AI will probably come with the following benefits.

Increased efficiency: AI can automate many of the routine and repetitive tasks that HR teams perform, such as resume screening and scheduling interviews. This can help HR teams to work more efficiently and focus on higher-value tasks.

Data-driven decision-making: Will provide insights that can help make better decisions, such as identifying top candidates or predicting employee turnover.

Improved employee experience: AI-powered chatbots can provide employees with quick and personalised answers to their questions, while AI-powered performance management tools can help managers to provide more effective feedback and support.

Enhanced diversity and inclusion: Identify and eliminate biases in the hiring process, such as using algorithms to remove identifying information from resumes or job applications.

Better talent management:

AI can help to identify and develop top talent within the organisation, as well as to identify areas where additional training or support may be needed.

Beware of the pitfalls of AI

However, there are also concerns about the use of AI in HR. Here are some of the key challenges and risks to be mindful of.

First is the bias that AI algorithms could carry. These are only as unbiased as the data they are trained on. If the dataset is biased, they may perpetuate those biases, leading to discrimination in recruitment or performance evaluations. T

Next is the lack of transparency. Some AI algorithms are complex and opaque, which leads to difficulty in understanding how they arrive at their conclusions. This can be a problem when HR teams need to explain their decisions to stakeholders.

The third challenge is data privacy/security. AI algorithms rely on large amounts of data, which can raise privacy and security concerns. HR needs to be careful to protect employee data and ensure that it is used in a responsible and ethical manner.

Fourth is the possibility of becoming boxed into artificial limitations, as we have seen with ERP and CRM where drop down menus, and not original thinking, rule. While AI can be a powerful tool, it should not replace human judgment. HR teams need to balance the use of AI with their own expertise and experience to ensure that they are making the best decisions.

Additionally, there are concerns about the potential loss of human touch in HR processes, such as the review or interview processes.

By being aware of these challenges and risks, HR can work to maximise the benefits of AI while minimising its potential pitfalls.

Best practices that HR can adopt while considering AI

Define clear objectives: HR leaders should have a clear understanding of the business objectives they want to achieve through AI. This will help them to select the right tools and measure the success.

Ensure data quality: It is important to ensure that the data used in AI applications are accurate, relevant, and up-to-date.

Evaluate AI vendors: HR teams should evaluate potential AI vendors carefully, looking at factors such as their track record, expertise, and commitment to ethical practices.

Ensure transparency: AI algorithms must be transparent and explainable so that employees and other stakeholders can understand how decisions are being made.

Address bias: Take steps to address bias in algorithms, such as testing algorithms for fairness and eliminating any biased data or features.

Use AI to complement human expertise: While AI can automate many routine tasks and provide data-driven insights; it should not replace human judgment entirely.

Invest in training: Specifically, training to develop the skills and expertise needed to work with AI tools effectively and responsibly.

Monitor and evaluate: Monitoring the performance of AI applications and evaluating their impact on the organisation by adjusting their strategies is critical.