When considering artificial intelligence (AI) in the workplace it’s important to remember that change, including technological change, has consistently contributed to an organization’s successes as well as its failures over the years. Technology and machine learning are evolving at a rapid pace, bringing with them concerns about adoption, implementation, and use. This is especially true for human resources (HR) departments, where there is a broad range of applications for AI use, and the best technology today can quickly become outdated or ineffective tomorrow.
The History of AI and Human Resources
Various AI tools are used by HR professionals in areas relating to employment practices and policies, recruiting, selecting candidates for further review, hiring, onboarding, retention, and continuous learning topic selection to name a few. Even at the dawn of the internet, recruitment platforms and job boards began popping up with increasingly advanced algorithms and tech. These early AI technologies were integrated into websites to enhance search capabilities, match candidates with job openings, and automate some aspects of the hiring process.
In the 2010s, machine learning was introduced, and it soon became useful for analyzing large amounts of data to identify patterns related to employee performance, attrition risk, and workforce diversity. One study on the evolution of research surrounding AI in the area of Human Resources shared that in 2010, 75% of articles identified in the study focused on “using AI to support decision-making” as part of HR management efforts.The 2020s have seen even more advancement with the addition of generative AI tools used for things such as screening candidates or answering frequently asked questions.
AI in HR
With this increased capability, there are many examples of AI in HR and many AI tools for human resources currently in existence. Here is a brief list of some of the areas AI contributes to in relation to HR efforts:
- AI can power more efficient recruitment and talent acquisition by helping HR professionals sort through data and resumes to find potential top candidates.
- AI has long been used for employee training, and systems are only getting more sophisticated for how employees learn and upskill on the job.
- AI has the potential to collect and analyze feedback from employees that can be used to increase employee satisfaction and efficacy.
- AI can be used to increase employee retention. This often stems from AI’s other benefits such as higher levels of employee engagement.
- AI can be used as a tool for predicting business outcomes, which benefits HR in providing information on potential attrition or identifying gaps in the workforce’s overall training.
While there are many applications available, in practice, from an HR perspective, AI adoption can create opportunities as well as frustrations depending on the organizational approach to its use and reliance. In a 2023 Dale Carnegie global study, only 35% of HR representatives were extremely satisfied with the use of technology at their organizations.
So, while AI can do many things in support of HR efforts, it’s critical that companies are strategic and selective in adopting AI technologies. Considering that: “Companies that have been successful in adopting AI in various areas of their organizations recognize that they have to prepare their people for it,” the risks are simply too great not to create alignment before adoption.
Limitations of AI in HR
There are many benefits of AI in HR, such as improving processes, increasing accuracy, analyzing complex information, and freeing up time from routine tasks. But there are also downfalls and limitations to AI as well.
For example, consider applicant recruitment and selection. A Human Resource representative with a large, multi-national corporation recently shared with me that as AI systems sift through applications, what they look for can be so specific that they can falsely remove people who are otherwise good candidates for a role. The use of AI for this purpose also relies on the applicant’s ability to create a very specific digital resume with the right keywords.
AI systems used for hiring have also been shown to increase bias against particular demographics, even when the system is supposed to be impartial. A 2023 study shared that, “The decisions made by AI are shaped by the initial data it receives. If the underlying data is unfair, the resulting algorithms can perpetuate bias, incompleteness, or discrimination, creating potential for widespread inequality.”
As a continuation, recruitment and selection are also limited by the fact that algorithms are trained using datasets of established recruitment and selection numbers. While this can save time in the short term, it does not contextually consider the future direction of your company. For example, strategic company goals might include engaging new hires who have skillsets that will help you pioneer new areas of business, and your existing datasets might not be sufficient enough to identify these other top candidates.
Will AI Replace Human Resources?
With the current application of AI tools for Human Resources, it’s critical to ask ourselves: How will AI affect Human Resources in the future? Will AI completely replace HR in our workplaces? The answer is no, however, in the future, companies will need to find the balance between human-led initiatives and those that can be reliably outsourced to AI. To do so, those tasked with utilizing the technology should be included in the decision-making efforts because successfully using AI for Human Resources means starting with the people using it, not the tech itself. Considering that currently, only 26% of individual contributors in the workplace trust leadership to make the right decisions regarding AI implementation, inclusive conversations are imperative.
As a parting thought, consider that while AI can do many things, it very well may be that continued human involvement in the recruitment and selection process becomes a key area of competitive advantage and opportunity for organizations as others lean more heavily on tech.
Time will tell.
Developing HR Skills for the Future
The balance in using AI for Human Resources lies in our understanding of the importance of interpersonal relationships as part of the human experience, both professionally and personally. HR professionals will continue to need soft skills around topics such as tactful communication and effective human relations to help build and guide effective workplace environments. Ultimately, this is also about competitive advantage. Companies that balance a strategic tech approach with the necessary soft skills to support individual success and growth will not only be better situated in the market but will be more resilient and agile in the face of constant change.
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