Artificial Intelligence continues to push the boundaries of what’s possible, from creative capacity, generating art, music and written content.
And on the Human Resource front, generative AI has accelerated HR’s engagement with artificial intelligence.
In many ways GenAI has the potential to dramatically transform the HR function. And we are already seeing it with teams using chatbots, using AI in recruitment and people analytics. With the future of HR set to be one of a more strategic role in organisations, GenAI promises to make that future a reality.
How does GenAI support the HR agenda?
Enhancements in productivity
GenAI will streamline processes such as recruitment, onboarding, learning & development, and daily HR administrative tasks. Plus, it will be used to automatically create content, analyze data, and generate reports. With the right mix of maturity, clearly defined goals, and time, a balanced human and AI strategy could boost HR productivity up to 30% in the not-so-distant future. One early adopter in AI for HR has been able to reap financial benefits, cutting its annual budget by 10% year over year for the past three years..
Increased self-service & personalisation
Need a HR issue addressed, GenAI offers more conversational workflows and tailored information to address employee needs. It creates efficiencies and improves the overall employee experience.
GenAI in HR can help employees on areas such as career development, upskilling and reskilling, flagging stress or burn-out, and nudges to take leave and so much more. Generative AI can be used to create customized learning and development plans or onboarding plans for each individual employee.
Enhanced data-driven decisions
Over 50% of CEOs expect cost savings and significant productivity gains in operations thanks to AI. But AI's effectiveness depends on the quality of data that's provided. As AI expert Bernard Maar noted, “Inaccurate or unclean data can lead to flawed AI-driven decisions, negating the benefits AI could otherwise bring to HR management.” Maar outlined the metrics that HR leaders can use to evaluate whether their data is ready for AI processing. These include:
- Consistency: All data should be recorded consistently.
- Accuracy: Data must be error-free to ensure reliable AI-driven decisions.
- Uniqueness: Duplicate data should be eliminated to maintain data integrity.
- Validity: Each piece of data should be fit for its intended purpose.
- Timeliness: Data should remain relevant concerning the time it was collected.
- Completeness: Data should capture as much relevant information as possible.
Managing the risks
GenAI not only enhances current processes and activities but also revolutionizes how HR caters to talent, thereby transforming the overall HR service model. However, amidst this transformation, HR should exercise caution due to the numerous risks associated with GenAI, particularly concerning the handling of sensitive personnel data. Over the years, HR has endeavored to influence employee sentiment and minimize bias in decision-making. AI holds promise in further mitigating bias inherent in current processes, provided it is implemented correctly. To achieve this, HR must collaborate closely with legal and business leaders to ensure responsible AI deployment and address any biases evident in GenAI systems.
Leaders should prepare for a constantly evolving technological and regulatory landscape, where new solutions and regulations are closely monitored. Despite the advancements brought by GenAI in identifying insights and summarizing data, human involvement remains crucial in making sound, just, and well-documented business decisions. The realization of this future hinges on various factors, with HR's responsible utilization of GenAI being just one of them.