Artificial intelligence has become a buzzword in recent memory.
AI this, AI that.
Its omnipresence permeates into seemingly every facet of business relationships and personal lives. Love it or hate it, AI is here to stay.
Despite early adoption in tech, marketing, and customer service, generative AI is relatively nascent in the HR world. Only 25% of companies use AI in HR functions, but most were early entrants with the capital to sustain and build upon it.
Enter modern history.
With the sudden, spontaneous availability and affordability of AI-powered HR solutions, companies are better positioned than ever to embrace the technology. As machine learning and generative AI improve, AI adoption and initiatives become integral to a well-oiled HR machine.
The use of AI in HR is multidimensional, but it’s primarily a driver of efficiency. Operational inefficiencies can hinder HR processes, especially time-consuming processes such as recruiting, training new hires, workforce planning, and analytics, as well as streamlining workflows. In short, it’s the future of HR and the future of work.
Business leaders leaning toward AI solutions will find numerous use cases that make adoption more attractive. Let’s examine some of the most critical.
Employee performance is a focal point of any successful company, but read any popular HR newsletter, and you’ll find that people analytics is an arduous, uphill battle. Any performance assessment requires constant monitoring, which HR departments rarely have the time or resources to complete accurately.
AI in HR solves this problem by using algorithms and data sets to measure employee metrics in real-time. This identifies skill gaps, drops/increases in performance, and advancement potential.
The earliest adoption of AI in HR was undoubtedly recruitment and talent acquisition. For many years, AI-powered applicant tracking systems have been weeding out resumes and sourcing more qualified clients. More recently, AI-driven HR technology or even free tech like ChatGPT has built comprehensive job descriptions, freeing time for HR teams.
Beyond the initial recruitment process, AI is more involved than ever. Some companies have turned to chatbots for the initial interview stages and automated communication and scheduling.
Due to the technology's infancy, no one’s quite sure where the line between AI and humans will be drawn in the recruitment and hiring process. While it’s not out of the realm of possibility to make final hiring decisions based on AI metrics, the process is somewhat controversial. It will likely remain the responsibility of HR decision-makers.
Employee engagement and retention can impact the very foundation of a business. Lackluster engagement and mental well-being cause drastic drops in productivity and morale, while high turnover can cost a company as much as 150% of the replacement salary.
To solve this problem, AI in HR can use algorithms and predictive analytics to assess trends in employee performance. It effectively combines performance evaluations, productivity, employee feedback, and other metrics to ascertain each employee's upward or downward performance.
Outside forces—such as the birth of a child, illness, or other life events—can render some of this analysis inaccurate, allowing the human aspect to take over. Nevertheless, a combination of human and AI-based evaluation is part of the future.
Interactions between employees and HR were once back-and-forth through email or meetings, but no longer. Generative AI chatbots and automated scheduling can streamline hiring and recruitment, but they’re also crucial in company-wide communication.
These chatbots can instantly access the employee handbook and HR metrics, offering training suggestions and addressing potential skill gaps. This enables a human-esque approach to each employee’s individualized and professional journey without the need for face-to-face interaction or an onslaught of emails.
The sudden prevalence of AI in HR has led to the creation of hundreds of tools for every stage of the employee lifecycle — from hiring a new office manager to offboarding a retiring employee and everything in between.
Due to the sheer number of available AI-driven platforms, companies must compare and contrast AI tools based on budget, necessity, and application. While many of these tools are recognizable, others are fresh to the scene:
The benefits of AI in HR cannot be understated, but adoption comes with its own challenges. Like new HR or company initiatives, you can’t simply plug AI into HR processes. Though the advantages of AI are evident, you need to be aware of pitfalls before implementing new programs.
One of the most often cited reasons organizations fail to adopt HR is that their current software doesn’t support it. Their systems lack AI integration, or their provider is far behind its competitors.
If AI in HR is to succeed in a company, it may need to overhaul its software — a lengthy and expensive process that can lead to temporary problems in all areas of HR. Commitment to a new AI tool or software is necessary, so choose the right one to complement your business.
AI in HR is almost entirely dependent on data. Without data, AI is almost entirely useless. The problem is that securing sensitive information while providing transparency isn’t easy.
Companies adopting AI-driven solutions need to secure employee privacy, ensure employees know how their personal data is used, and have a failsafe to protect that data from outside threats.
A tempting solution for small and midsize businesses is to use AI in HR to replace humans. This cost-cutting measure instantly impacts the bottom line while monitoring an HR department that won’t question or conflict with other people or areas of the business.
Despite its cost-effectiveness, this move can instantly backfire. AI tools are just that—tools. Even when plugged into all the HR knowledge in the world, AI cannot mediate conflicts, make non-data-related decisions, or make many other HR-related decisions.
HR won’t necessarily replace HR professionals, but it will demand that certain roles change. Every person in your HR department has to be trained in AI tools for seamless integration, but they also need to understand how their role will change based on these tools.
Organizations must assuage their employees' fears while promoting their longevity within the company in a new yet HR-focused role.
Many companies have been at the forefront of AI in HR, fully embracing the technology at its onset. Some of the most prominent and outspoken brands that have steadily used the technology since its onset include:
Like many past technologies, AI has been a cause of concern and resistance in human resources. In the book “Innovation and Its Enemies: Why People Resist New Technologies,” author Calestous Juma argues that people tend to reject tech that replaces rather than augments humanity. AI in HR is undoubtedly one of these concerns.
Despite the fear that accompanies any new tech, AI in HR isn’t going anywhere; it’s more likely to become a crucial cog in the machine.
You can’t sugarcoat the facts, though. AI technology will be crucial in decision-making, onboarding, hiring, and other HR roles. Some studies suggest that this could amount to a loss of 14 million American jobs over the next five years.
However, AI-driven technology can’t replace HR individuals entirely. AI doesn’t wholly understand human interactions and the human touch, such as employee recognition, employee engagement, employee experience, motivation, performance management, and a plethora of other HR-related topics.
While AI may consolidate the pool of HR professionals, it is not a replacement for HR managers and HR departments.
In a data-driven and dynamic business world, technological laggards are left behind. This is the same as the advent of automobiles or industrial automation.
HR leaders who want to succeed should leverage AI upskilling and knowledge to cement their position. Viewing artificial intelligence as a handy tool instead of a rival or enemy is vital to success. To streamline HR processes, the only logical solution is to embrace AI while adding a human element. It’s a surefire way to promote and develop motivated, talented, and high-performing teams.
Ready to 2x your global engagement at your next event, with Ox stress?
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Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
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