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    Is HR ready for AI?

    November 2, 2023

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    Is HR ready for AI?
    Written By
    AI in HR

    Is HR ready for AI? As artificial intelligence evolves, it is poised to take over millions of jobs, even as it creates millions of new ones. What will this upheaval in reskilling and upskilling look like for HR? This article discusses the impact of artificial intelligence on human resources in detail. 

    If AI will have profound impacts on the human workforce, then human resources will have to play a crucial role in how businesses adapt to this revolutionary force – and that's not an easy task. Are HR departments getting ready at the necessary pace? 

    According to Gartner, 81% of HR executives have looked into or adopted artificial intelligence (AI) solutions to enhance organizational process efficiency. CHROs need to understand the significance of artificial intelligence and its use cases to stay competitive. They have to prepare for the effects that AI will have on the Human Resources department and the workforce as a whole, and ask themselves, is HR ready for AI? 

    How AI is Reinventing HR 

    Artificial Intelligence (AI) is the creation of computer systems that are capable of carrying out tasks that typically call for human intelligence. This involves the ability to learn, reason, deal with issues, and understand natural language. 

    The growth and evolution of your daily tasks – and of your HR practices – will become measurable as a result of the use of artificial intelligence in human resources. This includes: 

    1. Resume parsing and candidate matching in recruitment

    By evaluating resumes and comparing them to job postings, AI is assisting businesses in finding qualified candidates. 

    Some AI-based HR applications go beyond automatically parsing resumes. Beyond that, they use the resulting data to compile a list of ideal candidates from LinkedIn as well as other online sources. Then, it creates an email for the prospects that encourages them to apply for your open positions. 

    The assessment process is increasingly reliant on artificial intelligence, from online interview insights to assessments of personality and much more. This not only saves innumerable hours of labor but also guarantees no qualified applicant is overlooked due to human error or exhaustion. 

    Learn More: Let’s Talk Business - With Darwinbox's all New Voicebot  

    1. Employee attrition analysis

    AI is capable of producing a metric called the employee departure risk score. This represents the probability that a worker is going to leave or quit the company. By applying AI and augmented analytics, it's possible to determine the organizational triggers that lead to higher attrition rates in order to execute corrective measures and mitigate a high churn rate. 

    1. AI-powered employee support bots

    Routine questions pertaining to business rules, HR processes, absences from work, and compensation occupy a significant portion of an average HR team's daily workload. A chatbot powered by artificial intelligence can be made accessible 24/7 to respond to these queries. As a result, HR would save time, and employee experiences would be enriched. 

    Machine learning (ML) allows chatbots to learn from prior queries. In time, they might be able to offer quick and accurate responses to many of the most common employee FAQs.  

    1. Automated onboarding and offboarding processes

    Frequently, fresh hires feel overburdened by documentation and protocols. Imagine a platform for enrolment that's powered by AI. 

    When someone new enters the company, this platform helps them. The software then takes the new employee through the necessary paperwork, explains company policies, and it even schedules initial training. 

    The employee consequently feels more relaxed and more accepted. Likewise, when a worker leaves the organization, the AI can handle exit surveys, the restitution of company property, along with other offboarding tasks. This guarantees a seamless transition for both parties; clearly, it's a win-win scenario. 

    1. Learning and employee development

    Where do employees see themselves five years from now? AI has the ability to help with the recommendation of individualized training courses for career progression.  

    By analyzing each employee's data, like their abilities and preferences, AI could customize training according to their specific goals. It has the ability to assist HR managers in identifying latent talent or discovering/recognizing individuals who are ready for advancement. 

    1. Temporary staffing

    AI in HR can assist businesses in rapidly filling vacant positions, including temporary or contractual roles. With natural language processing (NLP) capacities, AI tools for HR can replace manual procurement tasks, letting HR teams devote more time to strategic thinking and planning.  

    For instance, AI tools might help managers in gathering stakeholder expectations. The artificial intelligence then works autonomously inside a vendor management system (VMS) to generate a request to suppliers, which will help identify prospective contractors/freelancers and schedule interviews with the relevant recruiting manager. 

    Learn More: Future of AI in HR: Latest Trends and Tools  

    Say Hello to the AI-Augmented Workforce: Is HR ready for AI? 

    Artificial intelligence (AI) will herald a new era of office work in which data analytics, machine learning, and automation come together to help save people time and encourage higher-quality results. 

    Based on a global study, administrators anticipate that 40% of their staff members will require retraining in the next three years because of the introduction of AI and automation. 87% of those surveyed believe generative AI is more likely to augment employee duties instead of supplanting them, with effects varying by job function. 

    This shift will have an immediate impact on human resources departments as companies seek to fill roles with expanded responsibilities and individuals look for new positions as their own roles evolve.  

    As you prepare for this AI-augmented workforce, ask yourself this question – “Is my organization’s HR ready for AI?” If the answer is no, then consider taking these measures: 

    1. Rethink headcount and the scope of work

    For the same volume of work, a smaller group will be needed. In this context, executives adopting AI must anticipate staff cuts over time. 

    Human resource executives will have to redesign AI-disrupted job roles into more niche multiskilled generalist positions that encompass a broader spectrum of competencies. Also, they have to offer a more appealing employee value proposition to attract candidates for these demanding positions. 

    1. Re-orient performance expectations

    In newly configured roles, performance standards are going to evolve. When generative AI and associated technologies are employed strategically and creatively to change what workers do and what customers expect, new, highly specialized careers will come to the fore. Accordingly, HR teams will have to re-orient their performance management strategy and KPIs. 

    1. Demonstrate AI’s ability to empower

    AI will act as a path accelerator for workers and supply them with the tools to rapidly become team superstars if implemented properly. 

    Show employees the transformative ability of AI to manage all the monotonous administrative and repetitive tasks they dislike and how it lets them experience new and vital workplace interactions. Overcoming the initial resistance to change is one of the first steps HR teams need to take if large-scale AI-implementations are to succeed. 

    1. Monitor AI implementation progress and share your successes

    As with any technology, bringing in AI can seem difficult at first. Nonetheless, it helps to remember why you instituted the technology in the first place and to urge your team to talk about their "wins" and insights gained. Create a list of key metrics that you want to enhance as an outcome of using AI, such as your upskilling efforts, and then track your progress. 

    1. Train employees on compliance in an AI-enabled workplace

    HR and diversity, equity, and inclusion (DE&I) teams can advocate for compliance more than any other business function. Through employee training, HR is, therefore, the first point of protection against AI abuse or misuse in the workplace. 

    irrespective of how thorough an organization's AI policies are, they are futile if employees have no idea how to use the technology effectively. HR must therefore train employees to use AI in a way that safeguards data confidentiality, avoids bias, and fosters transparency. 

    Human oversight ensures that they conform to the organization's standards of conduct and any laws that are relevant. 

    AI-readiness: A double-edged sword 

    If you are answering the question “is HR ready for AI” in the negative, don’t worry, you are not alone. In a recent survey, more than 1 in 3 leaders in human resources (HR) estimate that they will require a minimum of three years to get ready for the effects of artificial intelligence (AI) in the workplace. 

    Human Resources' greatest concerns surrounding AI implementation were an absence of human interaction (30% of respondents) and an excessive dependence on technology (30%). 

    However, HR professionals said that AI could offer them a number of benefits, such as advances in decision-making (32%), efficiency and productivity (30%), automation of everyday tasks (30%), and creative thinking and innovation (30%).  

    Learn More: 20 Examples of AI in HR You Can Learn From  

    Benefits of AI in HR 

    Change can be intimidating, but AI tools give HR departments a number of important advantages, like the refining of their workflows and improved decision-making. 

    1. Make HR processes more efficient

    AI can automate tedious and time-consuming tasks, allowing human resource professionals to focus on crafting strategies. Moreover, AI enhances decision-making by offering valuable insights using HR analytics and predictive analytics. 

    For example, artificial intelligence can increase the efficacy of hiring by improving the screening and hiring process. Algorithms can evaluate resumes, identify the most qualified candidates, and offer recruiters data to help them in making more informed hiring decisions. 

    1. Find the most high-ROI areas of optimization

    AI enables the accumulation and evaluation of data in the HR processes, which removes biases and assumptions. This means that you select the ideal candidate or present an outstanding compensation and benefits package. 

    For example, AI can turn the spotlight on specific factors to help you decide based on the parameters that matter the most:  

    • Cost: Reduce recruiting costs by emphasizing cost-related metrics like job posting effectiveness and costs per hire. 
    • Velocity: To expedite recruiting, focus on acceleration-led key performance indicators (KPIs), like time to fill and time to hire. 
    • Quality: To improve the quality of new recruits, prioritize quality-related KPIs like new-hire attrition and new-hire retention rates. 
    1. Optimize resource use

    Software powered by AI is capable of analyzing vast quantities of data to recognize patterns and trends and propose cost-effective solutions. AI offers data regarding the engagement drivers that yield the highest returns, allowing you to distribute funds accordingly or eradicate ineffectual employee engagement initiatives. 

    23% of HR executives surveyed by McKinsey's Global AI Survey indicated a median revenue spike of 6 to 10% because of the introduction of AI. Performance management, organizational design, workforce utilization, and talent management maximization were notable AI in HR use cases. 

    1. Improve employee experiences

    With AI, you can customize the employee experience. Using artificial intelligence, their inquiries are resolved much faster. 

    For routine questions, employees don't have to schedule a meeting with HR or await an email response. Furthermore, employees receive personalized onboarding and training recommendations. Also, AI tools assist employees with career planning, thereby enriching their experiences in the workplace. 

    Learn More: AI in HR: Benefits, Challenges, Best Practices, Trends  

    Why AI Cannot Replace Humans in HR 

    Ultimately, despite the above benefits, AI's function in human resources is to help people rather than replace them. While AI has the ability to perform many of the duties currently carried out by human HR managers, it’s still left to people to make decisions regarding the AI's work.  

    Assume you automate a significant portion of your department's operations (see the preceding section on AI redefining HR). You will still need someone who understands how to use the system and can offer it with updated directions if something goes awry or if there are any modifications. 

    In reality, HR professionals may discover that AI improves their on-the-job performance by offering them data-backed perspectives they wouldn't have been aware of otherwise. 

    There are several reasons why AI cannot replace humans in HR and why manual intervention, in the most value-adding situations, will always be necessary: 

    • AI has no sense of emotional intuition. Humans cannot be replaced by AI because interpersonal connections are crucial for HR success. 
    • AI cannot function without the input of data. AI becomes ineffective when the input data is insufficient or when the algorithm fails to account for unforeseen circumstances. 
    • AI was created to think logically. However, beyond only logic, human HR executives are capable of creative thought, drawing insights from a wide range of sources, and devising solutions to complex situations with limited data. 
    • Artificial intelligence is unable to perform self-regulation and demands external oversight. One issue with AI chatbots is that they're frequently wrong and require human fact-checking. 

    Learn More: Top 5 Ways AI is Changing The HR Landscape in 2020  

    What is HR in the Age of AI? 

    HR professionals have numerous opportunities to improve their hiring, training, data analysis, and everyday tasks in the era of AI. HR teams can continue to flourish in this exciting new age by embracing the potential of AI and staying aware of its ethical implications. 

    In the age of artificial intelligence, the HR function is shifting from traditional administrative tasks to making strategic decisions and using technology to improve employee experiences. To capitalize on AI's enormous potential, HR professionals must improve their skills and adapt to a rapidly shifting landscape. 

    The importance of expertise in AI, statistical analysis, and digital tools is rapidly rising for HR. This involves comprehending the limitations and risks of AI, having the ability to decipher AI-generated insights, and communicating AI-related realignments to how employees work and carry out their tasks. 

    Learn More: Darwinbox X Microsoft: AI in HR - Here today or Here to stay?  

    Will AI Replace Human Work? 

    Indeed, artificial intelligence programs are fast gaining ground in work environments, and they'll take over quite a few current jobs. However, its role is typically limited to repetitive tasks demanding less complex reasoning. 

    Moreover, as the world evolves towards a more unified technological landscape, emerging workplace demands will lead to fresh opportunities for humans – for example, fact-checking AI-generated content. 

    According to a report by the World Economic Forum, while devices with AI will replace approximately 85 million jobs in 2025, it will create roughly 97 million jobs in the same year.  

    Artificial intelligence isn't something that employees should worry about, mistrust, or live in fear of. However, they must enhance their skill sets to avoid being replaced by AI. They have to pick up new skills, stay relevant in their chosen field, and brush up on uniquely human skills like innovation and creativity. 

    HR teams must help their workforce on this journey, as some amount of upheaval is inevitable. 

    Witness the latest AI innovations in HR; schedule a demo with Darwinbox today!  

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