Artificial intelligence (AI) has already transformed many parts of a business. But one area that it’s making a big difference is in human resources (HR).
AI is being used today across multiple functions within HR. Among the most widely deployed are AI tools for employee records management, payroll processing and benefits administration, recruitment and hiring, performance management and onboarding new employees.
As AI’s adoption becomes more widespread, it will eventually be used throughout the entire employee life cycle, with 60% of companies expected to deploy it in this manner this year, according to the International Data Corporation’s Future of Work 2022 report. That figure will only rise as the technology becomes more advanced.
AI applications
AI’s widest application in HR is for recruitment. It can be used to create job advertisements, process applications, screen and select candidates, write interview questions, analyse responses and send job offers.
This enables employers to be more targeted and effective in their approach when looking for specific skills and experience. By automating these manual and repetitive tasks, it also saves them greatly in time and resources.
Another area where AI is being used effectively is in onboarding new employees. The technology can be used to verify their documents, carry out induction training and handle administrative tasks such as providing them with office passes, IDs and access to company hardware and software.
As well as speeding up the process, AI can tailor it to individual workers, so that it’s relevant to their needs. It can also respond to their questions and take feedback to improve the process in future.
Learning and development is another aspect of HR that AI is transforming. Used in this way, it can create personalised training programmes to meet each employee’s individual requirements.
Then it can be used to monitor how staff are performing in terms of workflow and productivity, and to identify key areas for improvement. The technology can also track behaviour and engagement, analysing employee data such as work patterns and emails to detect signs of disengagement, stress and burnout, and even misconduct.
Risks involved
For all of AI’s uses, it still has its limitations. The chief one is that, because it requires human programming, there’s always margin for errors and biases to creep in, with 30.2% of bosses of the belief that AI can increase bias in recruitment, according to the Chartered Institute of Personnel and Development.
Mistakes made at the programming stage can be critical and have severe consequences further down the line. If the data is misinterpreted or the wrong factors are taken into consideration when sorting through candidates, then the best one may not end up being selected.
When sorting through prospects, if the initial parameters set include implicit bias, AI also has the potential to unintentionally create bias, and eliminate qualified and diverse candidates. And often the algorithms used to get the job in front of candidates in the first place targets the ones it thinks are more likely to click on ad rather than those that are best qualified, thus reinforcing inaccurate stereotypes and biases around specific roles.
While AI can be highly effective at analysing data and presenting clear conclusions, it can’t always pick up on important, non-technical nuances such as how the candidate will match a company’s culture and values. That can result in a candidate being chosen who may have all the skills and experience needed to do the role, but doesn’t fit into the workplace environment.
Another potential risk is chatbots. Their ability to streamline routine HR processes can be hugely beneficial, yet they’re also often an easy target for hackers, who can access sensitive personal or company data.
Key benefits
Despite the pitfalls, AI is already providing huge benefits to HR departments across multiple industries. The main ones are better decision-making, improved efficiency and reduced costs.
Forward-thinking organisations have been quick to harness its use in a wide range of different situations. As the technology continues to evolve, there will be even more cases in which it can be successfully applied.
But in order to work effectively and to eliminate the risk of errors, it needs to be designed to work alongside and complement humans, rather than negating their role. Only then can businesses start to realise the full benefits of its capabilities.
Elliott Hoffman co-founder of AI Tool Tracker
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