AI will forever change the future of HR, overturning established notions of work, talent, roles, and skills. To stay ahead, HR leaders should understand the key functions and use cases while planning the impact of AI on their organization. This guide can support them in this endeavor.
Many HR professionals feel it is necessary to drive the use of artificial intelligence (AI) in the HR department, as AI solutions have the potential to improve process efficiency in the company.
Leaders must plan ahead for the impacts AI will have on the HR department and the entire workforce. HR leaders should evaluate AI use cases to understand what AI means for employees in terms of role design, skills, and employee experience.
The AI landscape is rapidly changing. To stay ahead, HR leaders should understand the key functions and use cases while planning the impact of AI on their organization.
HR managers should take a structured approach when evaluating technology trends, using this three-step framework to make effective decisions about adopting new AI solutions in HR.
The first step in evaluating a new technology trend, such as generative AI, is to distinguish myths from reality and eliminate any prejudices. HR technology leaders should collaborate with IT, legal, compliance, and other specialized departments to understand the true potential of the technology.
For example, there is a widespread myth that AI technology will replace employees when it performs their current tasks better. However, the reality is different. AI tools are designed to enhance human capabilities and can be useful for task delegation. The technology will be ubiquitous in most employee activities, rather than completely replacing them.
Once HR leaders better understand what the technology can achieve, they can assess potential use cases and benefits.
Next, HR leaders must determine the actual potential benefits of AI and, most importantly, align potential use cases with corporate goals. They should focus on how AI can help alleviate functional problems and achieve goals by enabling activities to be performed better, faster, and more cost-effectively.
The final step is to evaluate AI solutions based on key success criteria to determine whether implementation is worthwhile. Each company has different criteria, but some key areas for HR leaders to consider include governance, workforce readiness, risks and ethics, and the vendor landscape.
What does the implementation of AI mean for employees? The ongoing development of AI will affect how companies hire, develop, and enhance the value of their employees. HR professionals and leaders must develop an AI talent strategy that fits their context and prepare for upcoming talent changes.
The implementation of AI within the current limits of industries and professions will lead to a shift in roles over time. Fewer employees will be needed to accomplish the same amount of work. Leaders using generative AI in this context should prepare for a reduction in workforce over time.
Leaders will need to transform the roles affected by AI into a smaller number of versatile generalist roles that encompass a broader range of skills and offer a more compelling employee value proposition.
Race for Performance. Performance expectations in redesigned roles will rise, and companies will not be able to compete without the use of AI. New, highly specialized roles will emerge, where generative AI and related technologies are used creatively and strategically to transform the work of teams and meet customer expectations. This requires a mix of business and technological expertise.
HR professionals should evaluate the risks and benefits of AI implementation on their HR functions. AI will impact HR work across the entire employee lifecycle. This includes HR operations, recruiting, learning and development, and talent management.
Initially, AI will lead to new employee expectations regarding interaction with HR and HR technologies. Over time, this shift will necessitate rethinking the purpose and structure of individual HR roles and teams.
Some HR professionals see human-like text generation by AI (e.g., ChatGPT) as a way to save time and effort for the HR team. Potential applications of AI solutions span the entire HR department, including talent acquisition, career development, learning, and HR service management.
Although AI is currently creating hype, many HR leaders are concerned about things like accuracy and completeness when using the technology for business applications. Moreover, there are no clear guarantees regarding data privacy and confidentiality at present. At the same time, leaders are aware that the first generative AI solutions may not yet be mature solutions.
Given these concerns, companies need to develop guidelines on the potential risks of generative AI. This HR guidance should make it clear that employees should not use sensitive or confidential details in their inputs and should err on the side of caution.
