- On October 22, 2024
Artificial intelligence (AI) is making waves across industries, and human resources (HR) is no exception. From speeding up recruitment to personalizing employee development, AI has the power to make HR processes more efficient and effective. While it’s essential to be mindful of certain risks, the benefits can outweigh them if we stay educated on what can go wrong and how to utilize these tools with care.
The Downsides
Most AI models operate on data from 2021 and before. AI generates information by analyzing large amounts of data to find patterns and make predictions. Think of the predictions as something similar to how predictive texting works on your phone. It scrapes from past data to generate what it thinks you want.
Immediately, an issue arises if you’re using AI for HR-related tasks related to current laws or policies at the federal level or in specific states. You’re going to be using data that may not be current. An easy example to relate this to would be generating an employee handbook that is compliant in several states. While the handbook would look nice and, on the surface, look correct, it would most likely be missing multiple recent laws that have come into play.
AI models also learn from data input directly by users. If you put something such as protected health information or personal data into a system, consider it part of the public domain. We strongly advise against putting any of your company’s intellectual property, employee data, or anything else you wouldn’t normally let someone outside your department or organization see.
Another major item you should consider before using AI is understanding its limitations around transparency and bias. You could run into significant legal issues if you’re using a tool to screen applicants and train your AI on only one demographic. It’s always important to have a human eye to ensure you understand the inputs and outputs of the AI system you’re using and conduct regular audits of the process’s flow.
Opportunities with AI
It’s not all risk, however. AI models are only improving as time passes, and we as a field are understanding more and more ways to utilize this tech.
Streamlining Recruitment: AI can sift through resumes faster than any human, helping companies find suitable candidates more efficiently. For example, Unilever uses AI-powered assessments to evaluate applicants through online games and video interviews.
Enhancing Employee Development: AI can recommend personalized training programs for staff by analyzing roles, interests, and career goals.
Improving Employee and Applicant Experience: AI chatbots can answer employee and applicant questions about benefits and company policies. Employees get quick answers anytime, improving satisfaction and freeing up HR staff.
Predicting Workforce Trends: AI can predict which employees might be considering leaving the company. With this insight, employers can take steps to boost job satisfaction and retention.
Optimizing Schedules: AI is an excellent tool for forecasting customer traffic and scheduling staff accordingly. It can also ensure employers have enough team members during busy times without overstaffing during slower periods.
AI Isn’t Going Anywhere
We have the opportunity to embrace AI rather than be afraid of it. AI has the potential to greatly improve HR by making processes faster, more efficient, and more personalized. By staying aware of potential risks like data security and bias, we can use AI to benefit organizations and their employees.
In the end, it’s about finding the right balance. We can harness the advantages of AI while keeping the human touch, which is essential to the HR profession. By doing so, we create a more efficient, supportive, and engaging workplace for everyone. As your consultants, we are proud to be staying ahead of the curve in utilizing AI and to partner with you in employing this technology in a safe and compliant way so that your team can focus on the human touch—which cannot be replaced.
ExpressLink Broker Partners have access to a team of HR Consulting professionals. Designed to deliver additional value to your clients, consider leveraging HR Consulting’s full range of tactical and strategic services. Reach out to your ExpressLink representative to learn more.