Generative AI is arguably one of the most transformative technologies society has ever had access to. The effects of this new technology will be felt in all companies - including, of course, in the HR department. A survey of HR leaders by US-based business consultancy Gartner found that 76 per cent of HR leaders believe that if their company does not adopt AI solutions, including generative AI, in the next 12-24 months, it will lag behind companies that do. Artificial intelligence is therefore a topic that concerns HR managers.
But how exactly could generative AI affect the work of the HR department?
Generative artificial intelligence (AI) is a type of AI that creates new content based on given specifications and available information. AI methods such as trained neural networks, deep learning and AI algorithms are used to generate text, images, audio and video content, programme code, 3D models and more based on instructions. ChatGPT is probably the best-known generative AI tool.
Generative AI tools such as ChatGPT will influence a large part of HR work. They will rationalise or automate processes such as recruitment, onboarding, personnel development and day-to-day administrative tasks in the HR department. In addition, generative AI will be used to automatically create content, analyse data and generate reports. In short, generative AI can unleash significant productivity gains.
Generative AI not only enables behind-the-scenes improvements, but can also lead to new, personalised tools that offer employees a better service. A simple example here is HR chatbots. These conversational AI tools can help with recruitment, assist with onboarding tasks and generally answer routine questions from employees.
Generative AI therefore enables the HR department to provide more self-service applications. This can be done in a more intuitive, personalised and helpful way than was previously the case. With their advanced language capabilities, Generative AI chatbots can now understand both context and content - making them better than previous chatbots.
Generative AI can also enable a personalised approach to employee support. For example, HR co-pilots can support employees with aspects such as career development, learning opportunities, reminders of personal goals or even recognising stress, time off or additional support. In addition, HR can use generative AI to create personalised learning and development plans or onboarding plans for each individual employee.
Another issue that HR needs to address is the impact of generative AI on the workforce in general. This is not just about supporting the workforce through job expansion and relocation - as important as that is - but also about equipping employees with the skills they need to succeed in the era of generative AI.
Management, in close consultation with HR, should ensure that there is a balance between the efficiency gains that generative AI can offer and the human qualities that will still be essential to organisations. For example, human qualities and skills such as strategic thinking, complex problem solving, creativity and emotional intelligence are expected to be in greater demand in the future.
The automation of many daily, repetitive and simple tasks in HR through generative AI means that HR managers can focus on more complex or overarching tasks. This in turn enables HR managers to be more strategically involved in the company. It is also true that all companies are equally confronted with the digital transformation. Generative AI can help the HR department to create even more value for the company.
As many managers are still unsure where to start with digital transformation, there is an opportunity for HR to lead by example - by embracing generative AI and digital transformation in general. These recommendations show how this can be achieved:
HR leaders should carefully consider how generative AI - and AI in general - will impact employees, what skills will be essential for future organisational success and how HR can support employees through the changes.
Change is scary. So when HR leads the way in managing change and uncertainty, it should do so with compassion and empathy.
HR leaders can observe how other organisations have successfully used generative AI and identify their own use cases - ideally a mix of longer-term, strategic opportunities to use generative AI and some short-term quick-win projects that can help build knowledge and enthusiasm.
If generative AI creates added value for the work of the HR department, those responsible should also tell these success stories within the company. By presenting the large and small successes within the company, they can increase acceptance throughout the entire organisation.
The world of AI is developing rapidly and now offers a wide variety of solutions, including for HR. Reason enough to take a closer look at this hotly debated topic and exchange ideas. After all, for a long time there was no practical advice for HR managers on how to deal with AI. So it's all the better that we invited you to a Fireside Chat with AI expert Thorsten Heilig, CEO of paretos, on 14 March 2023.
Thorsten Heilig gave insights into his work as CEO of paretos, a software developer that gives companies access to cutting-edge AI technologies that were otherwise reserved for 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.
You can read about the key findings and everything you need to know about dealing with AI in HR in our blog post about the event.
