HR Technology

How AI can be integrated into HR practices, ETHRWorld

<p>Avadhesh Dixit, CHRO, Acuity Knowledge Partners</p>
Avadhesh Dixit, CHRO, Acuity Knowledge Partners

Artificial intelligence (AI), which has started to disrupt almost every industry, will undoubtedly also accelerate the progression of HR departments across organisations. To be clear, AI, in its fundamental form, entails leveraging extensive data to construct algorithms that make predictions based on specific assumptions.

AI: Revolutionizing HR

To understand how HR processes can benefit from AI, let’s take an example. Hiring is one of the toughest challenges for HRs and this technology could be leveraged to streamline the process. A company which has been hiring for years can start building a database with details such as required skills, location, salary etc. Over a period of five-six years, thousands of resumes would have been stored in the database. Now, based on historical data, the company can start predicting the cohort of candidates who are most likely to be suitable for the role. This transformation in the process would translate into superior efficiencies, cutting down the time to hire good talent and this is just the first step of the process.

AI: Automation of basic tasks

Secondly, we have already started witnessing that several companies have begun automating their background verification and onboarding process. It has even automated administrative tasks, providing employees with the necessary information and resources, and guiding them through the initial stages of their employment. In the future, we can even see how level one queries will be automated in almost every organisation. Level one queries refer to the frequent questions asked by employees like leave balance, maternity policy to name a few.

We have seen how chatbots have revolutionized customer support, organisations are similarly implementing this to engage with their employees. Chatbots are also being used to get regular feedback from employees about their job satisfaction and ways they want to grow in their career.

According to a study, titled “State of Artificial Intelligence (AI) in Human Resource Management: A 2023 Report,” the global AI adoption rate stands at an encouraging 21% as more companies recognize the advantages of AI for managing their workforce. Further, 45% of global human resource management (HRM) leaders are incorporating AI for HRM.

AI: Unleashing the potential in tracking employee performance

AI tools can also help with data-driven insights into employee performance. With the help of machine learning algorithms, performance metrics can be tracked and other relevant data can be used to generate comprehensive reports and identify patterns. In the macro scenario, this can help to tailor training and development programmes, address skill gaps, and ensure personalized growth opportunities for employees.

AI: Cracking down attrition

Attrition is another major challenge for HR professionals. In a bid to retain good talent, employees expect to be provided with ample opportunities which will help them steer their career and realize their goals. AI can be used to create a strategic roadmap for employees with recommendations of how one can upskill themselves or increase their productivity and so on.

In every organisation cross function and learning will accelerate understanding and collaborations across the organisation. To accomplish this complex task, AI can be used to accelerate the process. AI can ease the workload of administrators by pairing up employees from different functions depending on role, location, and line of business while also capturing data on learner engagement, interactions, and outcomes. To add, AI can also personalise these training sessions for each employee based on their skills, projects, learning habits, making it more relatable and easier for the employee to learn it.

Challenges to adopt AI

However, adapting these tools takes time depending on the size of the organisation. The first challenge is accuracy. An organisation cannot completely automate the process until they verify that the results given are completely accurate. If it’s not, the consequences can affect trust, image of the organisation and lead to several unfavourable outcomes. So, naturally, companies are bound to take time to build credible data sets to predict the right pattern.

Predictive analytics can assist in workforce planning, forecasting future hiring needs, and identifying skills gaps within the organisation. AI algorithms can also provide recommendations for team restructuring, succession planning, and identifying high-potential employees.

Significance of privacy and empathy in HR

However, ensuring the privacy of the data is equally important due to the inclusion of sensitive information regarding the employees, encompassing both financial and personal details.

Additionally, empathy is the key in HR functions, with a focus on the culture and one of the major limitations of automation is that it does not have cognitive capabilities in different situations. For instance, an employee can file a harassment problem, but defining what kind of harassment it is, depends on the context which needs human intervention. So, while it is easier to automate simpler queries, solving such complex matters cannot be automated.

The need to keep away biases

Another crucial aspect to consider when automating these processes, particularly in larger organisations that they operate across different geographical locations and need to ensure the absence of bias. Bias can inadvertently seep into automated systems, resulting in inequalities and discrimination. Therefore, it is essential to implement safeguards and mechanisms that actively mitigate bias throughout the automation process.

For instance, diversity and inclusion is a sensitive area and organisations have the responsibility to build the culture of the organisation for all the employees equally, so that they feel safe, and feel that their concerns are heard. So, AI which interacts with employees needs to be built with that certain sensitivity.

Evolving HR roles

While the ongoing debate about automation replacing jobs continues, it is crucial to recognize that incorporating AI into HR processes necessitates the analysis of vast amounts of data and the development of appropriate algorithms. To carry out such analysis effectively, organisations will still require the expertise of HR professionals. Consequently, although some aspects of the processes will be automated in the future, HR roles will continue to evolve and adapt, resulting in dynamic job responsibilities. While certain roles may become obsolete, new roles will emerge in their place.

The integration of AI into HR practices holds immense potential for transforming the way organisations manage their human capital. From talent acquisition to employee engagement, training, and decision-making, AI can automate routine tasks, provide valuable insights, and drive efficiency. Any organisation should encourage its HR professionals to embrace AI as a valuable tool and leverage its power to create a workplace environment that fosters growth, productivity, and employee wellbeing.

The author, Avadhesh Dixit, is CHRO at Acuity Knowledge Partners.

DISCLAIMER: The views expressed are solely of the author and ETHRWorld does not necessarily subscribe to it. ETHRWorld will not be responsible for any damage caused to any person or organisation directly or indirectly.

  • Published On Sep 5, 2023 at 01:04 PM IST

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