Artificial intelligence is a broad-based label for technologies that leverage algorithmic computing to transform vast amounts of data into actionable insight.

AI can be a useful disruptor in a wide variety of workplace applications.

AI is on the cusp of transforming many aspects of HR to better equip it for a dynamic, ever-evolving workplace. AI is being recognised for its potential to reinvent critical HR responsibilities, including operations, talent acquisition, and talent development.

There are several benefits as well as disadvantages of implementing Artificial Intelligence in Human Resource Management. For companies that are considering whether or not to implement Artificial Intelligence for their Human Resource Department, it is essential to take into consideration your company’s goals because this will significantly influence the decision reached.

 

Employee hiring

A company – being a team – is only as efficient as its weakest member. However, searching for the first-class talent that meets the all-round demands of your organisation is never an easy task. However, with the proficiency and time management effectiveness of Artificial Intelligence through Digital Hiring Technology, this can quickly become a simple process. However, this remedy does come with its own pitfalls.

 

Pros

Implementing Artificial intelligence in the employee hiring process rules out the issue of human bias. Unlike the human nature that is prone to a degree of bias during employee hiring, Artificial Intelligence can seamlessly sort out, screen, and delegate qualified candidates to appropriate roles within the organisation in little or no time without the problem of human bias.

 

Cons

As Artificial Intelligence systems are designed to learn from the user, an AI system can also “learn” to be biased. Although Artificial Intelligence can do a clean job at recruiting without human bias, they may not be able to weigh and implement important variables such as company culture and similar company values during decision making.

 

Employee engagement

Clear communication is a necessity, especially for larger companies. Success in this area helps a company to optimise its performance objectives and grow towards the company ideal.

 

Pros

the process of employee engagement can be automated through Artificial Intelligence. The system can perform intelligent surveys and gather feedback in real-time. AI can also perform Personalised Internal Communication directly with employees instead of the traditional issuing of survey sheets; Artificial intelligence can provide the management with an all in one and detailed picture of the various challenges each employee is facing at work.

 

Cons

there may still be a need for human interaction as the system may not completely exhaust all the challenges faced by each individual.

 

Learning & staff development

One of the major responsibilities of the Human Resource Management department is Staff Development; in terms of educating them on the new programs, new procedures, tools, and so on, associated with their role in the organisation. Artificial Intelligence, like an Effective Learning Management System, can be instrumental in smoothening the process and progress of learning for all employees.

 

Pros

through eLearning, Artificial Intelligence can be used to educate staff rapidly and effectively. The system can also monitor and evaluate each employee’s performance to ensure that no employee is declining in the learning process so that the team completes each phase together and on time.

 

Cons

this process may further dwindle human connection, which is vital for staff, especially if they’re working as a team.

 

Automated FAQs

Human Resource Department is usually faced with the responsibility of responding to the same or similar queries all the time. For instance, queries concerning Paycheque, Holidays, and such are all duties of the Human Resource department; the loop can become dull and time-wasting. AI can be programmed to handle these FAQs.

 

Pros

Artificial Intelligence can be automated to attend to frequently asked questions, thereby saving a lot of time. Chatbots and virtual assistants are the most popular solutions for cases of this nature. They help leverage time and can be depended upon to answer all the time accurately.

 

Cons

it has become well known that chatbots can easily get hacked. This ultimately compromises the security of any sensitive information given by an employee, and can also become an avenue for unforeseen cyber attacks.

 

Human capital management

Finding and recruiting top-notch talent is only one part of the job. Afterward, employees need to be followed up, natured, and given adequate assistance so that they grow individually and within the organisation.If an employee does not feel like they are making headway both in their careers and personal lives, then there is a considerable chance that they will choose another profession. Artificial Intelligence can be automated to assist the Human Resource department in ensuring that employees grow persistently both individually and in their careers.

 

Pros

Artificial Intelligence through Automated Employee Surveys can assist Human Resource departments in ascertaining how well each staff is doing based on their performance in an individual set of tasks that define their roles in the company. This can be achieved through automated performance analysis. This will help to direct employee’s career paths and optimise the working force in the company.

 

Cons

the system can get hacked and risk losing sensitive data.

 

The Benefits of AI in HR

 

1. Reduce Human Bias

Given its reliance on data rather than human intuition and perception, AI removes the potential for skewed human perspectives to inhibit the decision-making process. This can protect an organisation from discrimination litigation but also create a more cohesive, communicative workplace.

 

Improve Relationships with Existing Employees

Different aspects of AI can be leveraged to find the nuanced individual characteristics of every employee through engagement surveys and other tools to best pair their personalities and temperaments with particular roles, departments, and co-workers.

 

Improve Efficiency and Insight in Candidate Assessment

Again relying on its ability to recognise and interpret nuance, AI can transform simple resumes, cover letters and communication with candidates into insightful, powerful tools to quickly and efficiently determine if an individual is a good fit for an organisation.

 

Increase Predictive Data Decision-Making

The algorithms that provide AI its insightful and prescient abilities, allow it to interpret data sets and create models that can be used to lend decision-making a reliable, predictive quality where decisions impacting today and tomorrow can be made on data from the past.

 

Expand HR as a Resource

By removing many of the resource-consuming responsibilities that have traditionally diluted an HR department’s overall attentiveness, AI allows HR more time and freedom to concentrate on performance management human-based tasks that make it such a critical component of any healthy organisation.

 

Become a Tactical and Strategic Asset

By leveraging the data derived from people analytics, HR can become a powerful source of actionable insight to design and implement strategies that can increase operational efficiencies, strictly upon the reliable shoulders of data.

 

Allow More “People Time” for HR

Like its potential to expand HR as a resource, AI can free valuable time for HR to devote to improving the employee experience with a hands-on approach that traditionally wasn’t possible due to time constraints and work loads.

 

Improve Decision-Making and Drive Results

Again through predictive analytics, AI can equip management with insight into employee satisfaction levels, predicting possible future sources of turnover to identify and correct individual, departmental, or systemic issues before they become problematic and costly.

 

Best Practices for Using Artificial Intelligence in the Workplace

Like most innovations, implementing AI according to its specific strengths will maximise the benefits a company can derive from its use. For HR, relying on AI for particular roles will leverage the technology in the most effective manner possible.

 

Sentiment Analysis

True feedback is a combination of the quantitative and qualitative. AI-based text analysis systems can help understand the sentiments of an entire organisation by placing feedback into positive, neutral and negative sentiment buckets. This helps leaders take an accurate pulse of their organisation and, thus, accelerates the feedback transforming into action.

For example, employee engagement can be transformed from a static, infrequent snapshot of worker sentiment into a vital, real-time analysis of the social framework that supports the entire organisation. Monitoring employee communication with AI can also measure employee satisfaction by analysing natural language to quantify the underlying emotions, not just the message itself.

 

Workplace Issue Understanding

Organising and dividing feedback into insightful slices is incredibly time-consuming for HR. Machine learning can automatically categorise feedback data into predefined HR categories like work/life balance, compensation and benefits to efficiently help organisations plan the right actions.

 

Smart Assistants

AI-based assistance can drive relevant and contextual alerts to managers based on conversations occurring within an organisation to identify what needs to be addressed without wasting any time.

 

Talent Understanding

Smart AI mechanisms can scan, read, and evaluate applicants, quickly eliminating 75 percent of them from the recruiting process. This can drastically increase the quality of hiring decisions and provide a huge timesaver for HR.

 

Chatbot Interactions

AI-powered chatbots can create streamlined and unique employee experiences based on personal interaction with every employee. This would be far too time-consuming without AI assistance and can provide benefits to onboarding procedures, training requirements, and more.

As evidenced by technologies like AI, HR is finally able to embrace and adopt innovations that will provide new efficiencies, minimising needed resources while maximising results.

Already enjoyed by other departments within any given organisation, HR has taken a leap by starting to incorporate AI-based platforms like chatbots, smart assistants, and various applications of predictive & sentiment analytics to derive the most actionable insight from their talent programs. Although the first step has been made towards the future of work, it’s a journey which organisations need to voyage on.

With the business ecosystem changing, a lot of technology based businesses are working on helping organisations by providing robust solutions which could directly be implemented in their people programmes.

 

Need assistance 

DavidsonMorris’ HR specialists provide guidance on adopting new technologies such as AI. With increasing practical applications of Artificial Intelligence within Human Resource Management, we can help with full consideration of the pros and cons for your organisation. Contact us for advice.

 

AI & HR FAQs

How is HR used in AI?

AI is primarily being used by HR to automate certain repetitive, time-intensive tasks to free HR professionals up to focus on more complex work.

How AI will affect HR?

AI is being used to transform HR through improved efficiencies and enhanced productivity.

Will HR be taken over by AI?

While certain mundane tasks and some administration roles may be undertaken by AI, it is unlikely that HR will be fully replaced by AI in relation to more complex project.

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Last updated: 24 July 2022