A Reference to The Future of AI in Human Resources

Today, automation based on artificial intelligence is ready to change and even destroy any industry, and the HR field is not an exception. In this article, we will discuss how artificial intelligence is transforming HR services today and in the future.

Artificial intelligence (AI) is the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. AI is the simulation of human intelligence processes by machines, especially computer systems. Specific applications of AI include expert systems, natural language processing, speech recognition and machine vision.

In Eightfold AI’s report The Future of Work: Intelligent by Design, the majority of the 250 HR leaders surveyed said they are already using AI across HR functions like employee records management (78%), payroll processing and benefits administration (77%), recruitment and hiring (73%), performance management (72%), and onboarding new employees (69%).

In terms of future use, 92% of HR leaders intend to increase their AI use in at least one area of HR. The top five areas are performance management (43%), payroll processing and benefits administration (42%), recruitment and hiring (41%), onboarding new employees (40%), and employee records management (39%).

There are several benefits as well as disadvantages to implementing Artificial Intelligence in Human Resource Management. However, for companies that are considering whether to implement Artificial Intelligence in the future, it will significantly influence the decision reached.

Let’s have a look at the areas where AI can be used and discuss the advantages and disadvantages of each usage.

Recruitment

Advantage: AI can be set up to screen CVs and filter all the candidates who don’t have the necessary skills or education required for the position. It can also implement a lot of administrative work, like sourcing — identifying the best-fit candidates through job-matching and scoring capabilities or creating a talent pool.

Example: Paradox provides an AI-powered assistant for recruiters and job seekers. The assistant, named Olivia, engages with candidates on the web, mobile and social channels to learn about their skills, expertise and relevant job experience. Olivia then presents candidates with the next steps, schedules interviews and answers company- or process-related questions using natural language technology.

Disadvantage: No matter how intelligent AI is, we can all agree that it can’t replace humans. It may give you a comprehensive look at the person’s professional skills and knowledge, but it can never tell you if the candidate will be a good cultural fit, for example. AI can’t recognize the nuances of team dynamics and how personalities work together. That’s where you and the team come in.

Feedbacking

Advantage: AI-driven employee feedback systems offer a solution to these challenges by automating the feedback process and providing employees with real-time, objective, and data-driven insights into their performance. This is a significant departure from traditional feedback management methods, by providing employees with ongoing feedback. AI systems enable them to identify areas for improvement and make adjustments to their performance more quickly and effectively. This, in turn, can lead to increased productivity, higher employee engagement, and better overall performance for the organization.

Example: Using Zavvy’s AI Coach, you can create feedback questions, provide real-time feedback and obtain suggestions on how to handle difficult performance conversations.

Disadvantage: HR is a human-based, personal operation. AI can’t replace an individual manager’s unique viewpoint or ability to “read” people in person, whether they’re job applicants or current employees. Although companies might incorporate AI solutions into their business models, the technology isn’t ready to take over significant face-to-face responsibilities in an HR department just yet.

Performance management

Advantage: AI can be used to assess employees’ productivity, for example, by monitoring the time an employee spends doing certain tasks, e.g. writing an email, using applications or reading articles. That data could then be used to make promotion or redundancy decisions or even to quantify the likelihood of an employee leaving the company by comparing current engagement and work output data to their previous benchmarks.

Example: Microsoft has been patenting different technologies recently to understand employee relationships and monitor employee productivity. Using AI to deliver KPIs is a great way to enhance employee efficiency. Microsoft’s Workplace Analytics lets employers monitor an individual’s data such as time spent on certain websites, writing emails, email response rates, and time spent working after they leave the office.

Disadvantage: Employers have an obligation to treat their workers in a way that will not harm the relationship of trust and confidence between them; the use of AI performance monitoring tools may lead to a breach of this obligation. The upsurge in remote working in recent years will continue to entice employers to implement AI-driven technology that can monitor employees working from home. This technology can violate the privacy rights of employees, which are protected by laws.

Learning and development

Advantage: Artificial Intelligence, like effective learning management, can be instrumental in smoothening the process and progress of learning for all ememployees. The system can create personalized suggestions and development plans, based on current skills, positions and new requirements in the market. It 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.

Example: Here we can highlight EPAM’s latest steps in developing AI usage internally. The most crucial steps were integrating ChatGPT into our Learn portal, which gives instant help with the education of our employees, and the “ Top recommended for you” section which collects the most relevant courses for you.

Disadvantage: This could make it harder for people to connect with each other, which is really important for staff, especially when they work together. In addition, L&D professionals still need to ensure their AI systems continue to function as they should and must constantly monitor them. Essentially, they need to continually work to train their AI-powered systems to train their employees.

Administration

Advantage: Integrated AI can help HR professionals get rid of mechanical and administrative duties. They can generate automatic answers to frequently asked questions about some procedures, vacations, holidays, benefits etc. 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.

Example: Caregiver technology platform Care.com uses MeBeBot as an intelligent system, answering employee questions about HR, IT, and Facilities. The AI-powered HR tool connects to the company’s Slack channel; within a month of integrating, MeBeBot had answered 897 questions accurately, instantly, and within the flow of work, so employees don’t need to waste time hunting down answers.

Disadvantage: With a growing number of organizations using AI to store business information, data security is critical now more than ever. HR must be able to reassure employees that their personal information, like Social Security numbers and bank details, is secure. It has become well-known that chatbots can easily get hacked.

Onboarding

Advantage: AI systems will help new joiners to understand company culture, values, and other important information related to the organization by getting an automatic respond to those questions. AI can also help to automate the administrative work like form filling, login creation, etc. It can improve the entire onboarding process by guiding the new entrant in the team by proactivity suggesting the next steps so that the entire process is ramped up quickly.

Example: Campervan company Roadsurfer turned to Zavvy to revamp its onboarding process and welcome new colleagues across eight countries and 36 locations. They designed a company-wide journey for each joiner, guiding them through their initial employee activities in their first few days.

Disadvantage: AI can’t connect as well to employees as a person on the other end might. The adaptation process can feel less personal for both the team and the new employee with AI-powered chatbots and systems. Though it can make the work simpler and more effective, it may ultimately lead to a lack of effective communication, which is essential in the first months of a new employee.

AI continues to revolutionize various industries, with an expected annual growth rate of 37.3% between 2023 and 2030, as reported by Grand View Research. This rapid growth emphasizes the increasing impact of AI technologies in the coming years.

There’s no doubt that AI is having a huge impact on HR. From automating routine tasks to delivering data-rich insights for more objective decision-making, AI continues to enhance how companies attract, develop and retain talent. However, it’s important for HR professionals to realize that AI shouldn’t replace the human touch in HR. Companies should be able to strike a balance between technology and human involvement to gain the greatest benefits.

Illustrations were made by Katsiaryna Dubina