What does the future of HR look like with AI? Insights from the NAVIT Fireside Chat "HR decision-making in the AI era"

Artificial intelligence (AI) is arguably one of the most transformative technologies society has ever had access to. The impact of this new technology will be felt in all organisations - including, of course, the HR department. The integration of AI is not just a luxury, it is becoming a necessity for organisations that want to remain competitive and innovative. It is imperative for HR leaders to recognise the immense value of AI and harness its potential to transform traditional workflows and unlock unimagined opportunities for business success.

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For a long time, however, there was no actionable advice for HR leaders on how to deal with AI. So it's all the better that we invited AI expert Thorsten Heilig, CEO of paretos, and transformation expert Florian Brückner from the Lufthansa Innovation Hub to the NAVIT Office on 14 March 2023 for a fireside chat.

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NAVIT Fireside Chat "HR Decision Making in the AI Era" with

Thorsten Heilig, CEO of paretos

Florian Brückner, Director Transformation from the Lufthansa Innovation Hub

The world of AI has developed rapidly and today offers a variety of solutions ranging from specialised expert AI to generalist AI. Thorsten Heilig provided insights into his work as CEO of paretos, a software developer that provides companies with access to cutting-edge AI technologies that were otherwise only available to leading tech giants. Thorsten used several real-life examples to show how companies can already utilise artificial intelligence today, including from traditional, medium-sized companies that you might not initially expect.

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In addition to exciting insights and experience reports from individual participants, one of the most hotly debated topics of the evening was the discourse on a differentiated view of human expectations and acceptance of AI.
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Did you miss the event? Here are your takeaways and everything you need to know about dealing with AI in HR.

Incremental change and future transformation

Although AI is already revolutionary, its full potential is yet to be realised. Over the next ten years, we can expect significant transformations in various business cases and workflows, not least as AI becomes more deeply integrated into HR processes. The biggest challenge for organisations will be to review and calibrate their expectations of AI.

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From predictions to process transformations

While it is common to start with predictions and forecasts, true transformation occurs when AI is seamlessly integrated into core processes, replacing traditional human decision-making methods. This transformation is fundamental for organisations that want to stay ahead in today's competitive environment.

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Augmentation vs. replacement

The debate around AI often centres on whether it will augment or replace human capabilities. However, the current focus is on augmenting human capabilities with AI rather than replacing them completely. By using AI as a tool for decision support and prediction, HR professionals can optimise their efficiency and effectiveness.

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Differentiation between AI types

A differentiated view is required: AI is not just AI - in addition to specialised expert AI, there is also generalist AI. Both work in different ways and are used in different sectors and areas of work.

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Expert AI

Expert AI provides decision support and predictions based on data. This AI performs tasks with a high degree of efficiency and precision. It works with specific, in-depth knowledge that it iteratively acquires through data and feedback loops. Expert AI is used, for example, in medical diagnostics, finance and law.

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Generalist AI

Generalist AI (Gene AI) focusses on language and creative tasks. This AI masters a wider range of tasks and is similar to human thinking. It processes and interprets contextual information from a variety of sources. Gene AI is used by OpenAI's GPT series and other chatbots, for example.

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Understanding these distinctions is crucial for the effective implementation of AI solutions in HR processes.

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Embrace technological change and experiment

The insights gained emphasise the need to embrace technological change and welcome the accompanying cultural shift towards AI adoption. This is becoming essential for organisations. This includes fostering an environment of experimentation and embracing mistakes as part of the learning process. HR has a critical role to play in fostering this cultural shift and upskilling employees to adapt to the integration of AI technologies.

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And what can HR departments expect and do? Recommendations for HR

1. Start with small, relevant AI initiatives: Start with targeted AI initiatives rather than aiming for large-scale transformations. This approach allows for focused efforts and tangible results.
2. Encourage cultural acceptance and adaptation: Shape a culture that encourages experimentation and learning from AI tools. Overcoming scepticism and building trust in the capabilities of AI are critical to successful adoption.
3. Alignment with organisational goals and strategy: Ensure that AI initiatives are aligned with broader business goals. This includes upskilling employees, redefining roles and gaining top-down support for AI-driven transformations.
4. Demonstrating the value of AI through use cases: Implement AI in HR with the aim of demonstrating its effectiveness through tangible impact on processes or outcomes. HR should select specific use cases and demonstrate their value to stakeholders.
5. Collaboration between management and HR: HR departments should actively participate in AI initiatives, understand the impact on roles and responsibilities and facilitate training programmes for employees.
6. Embrace iterative learning: Organisations should understand that AI adoption requires iterative learning and adaptation. Organisations should be prepared for failure, experimentation and continuous improvement.

HR decision making in the AI era requires a strategic approach that embraces both innovation and cultural transformation. By implementing the insights and recommendations discussed in our Fireside Chat, organisations can unleash the full potential of AI in HR to drive efficiency, productivity and ultimately success in the digital age.

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