How AI is changing HR

Artificial intelligence has taken the world by storm and, in the process, completely altered the way we work. HR teams are no exception, with many traditional processes shifting for good.

While most of the changes AI has brought into business have been welcome ones, it begs the question: Is it still “human resources” when the human has been removed?

There are a multitude of ways that AI has been used to automate functions, improve experiences, and bolster overall performance.

Recruitment

Recruitment is one area that can become much more streamlined and efficient if AI is used. This tech can filter and source candidates to find the perfect match for your business.

“The overarching thing we’re seeing is investing quite heavily into talent attraction. So, using AI and automation to drive personalisation, which is increasing conversions,” said Rich Lewis-Jones, SmartRecruiters’ APAC vice-president.

“So, people are really starting to think not only about how far they can open up the top of funnel to attract talent, but what they’re doing when they capture them, and then being able to track that as a source of attribution.”

Onboarding can also be improved by way of using video interviews and chatbots to reduce the time to hire. Feedback can be conveyed easier and overall sees candidate experience improved.

Learning and development

Learning and development can be time-consuming and resource-heavy if not handled properly. Online learning modules that utilise AI can provide detailed analysis, feedback, and personalisation while decreasing the human admin efforts traditionally required at the same time.

GoodHabitz Australia country director Cam Elliot said: “Generative AI-powered learning features provide next-level interactivity, engagement, and personalisation. This, in turn, enables organisations to improve learning outcomes, increase knowledge retention and transfer, reduce training time and resources, as well as promoting continuous learning and development.”

Internal mobility can be improved through similar technologies. With learning opportunities easier to access, employees are able to upskill and reskill faster. Furthermore, AI can source talent from within the business to fill positions, reducing the need to hire externally.

Customer service

AI in customer service removes the risk of human error while also improving the time to resolve issues and the costs involved in traditional customer service.

In fact, it’s predicted that 95 per cent of customer service interactions will be powered by AI by 2025. It’s not surprising to see why, when companies in the US are losing $75 billion per year through poor customer service, something AI could solve.

Reduced costs, improved efficiency

AI not only creates opportunities but also saves costs. According to a report by McKinsey, business efficiency can be improved by up to 40 per cent, and costs can be reduced by up to 30 per cent.

By automating the repetitive tasks, employees are able to spend time on more meaningful work. This can help to improve the quality of work produced, the time it takes to produce this work, and allow for better engagement.

It does cost money to implement AI, but the costs will be returned over time. Introducing in-house AI systems can cost between $1 million and $10 million. However, using a vendor can cost upwards of $100,000 per year. While the upfront cost is high, a return on investment is likely.

DEI

An area of business that doesn’t immediately spring to mind when discussing AI is diversity, equity, and inclusion. AI can actually help to prevent biases in the workplace, whether that’s in hiring or talent management.

Tariq Shaban, senior assessment consultant at HireVue APAC, discussed the benefits of AI in reducing bias in hiring: “Imagine a hiring process where biases take a backseat and every candidate has a truly equal shot at success. That’s where AI algorithms can play a pivotal role.”

“These smart systems are auditable, giving recruiters the power to detect and tackle biases head-on. When utilised correctly, AI audits can identify potential biases which exist in the hiring process and can then be used to mitigate the issue moving forward. By doing so, it paves the way for more inclusive hiring and ensures that everyone gets a fair chance.”

Decision making

Crucial to any worker within a business, decision making is key, but it can sometimes be difficult or a taunting task.

AI can be used to make this process easier by analysing data sets and making informed decisions based on these data sets. This tech can spot patterns that humans may miss, making it an excellent failsafe for any important decisions that need to be made.

AI draws information from various sources, meaning that its able to provide collated analytics that can take the stress out of researching and evaluating data.

While AI may be a scary prospect, especially considering the increased automation we’ve witnessed in recent years, it’s important to recognise all the possibilities that are made available through this tech. Employers can stay relevant in an ever-expanding world of tech by understanding how crucial AI will be in the coming years.