: Role of AI in transforming HR practices | The Financial Express

 

Topic: Role of AI in transforming HR practices | The Financial Express

 

Area: HRM

 

 

By Ranjini Chakraborty

When the influencer comedian Aiyyo Shraddha’s hilarious video went viral on social media earlier this year, it was not only for the satirical take on layoffs and technology but also for what she spoke about HR that found great resonance with the community.

The caustic humor that she doled out gave a true and interesting perspective on what the year ahead will look like and sure, it did. With the world that is experimenting with Open AI, chatbot like ChatGPT there is much that AI will do to transform and reform the role of HR too.

Here is my dig on the role and influence of ‘AI in HR ‘-

AI in HR

With its direct intervention to monitor employees’ performance through stack ranking, behavior and engagement, AI will provide HR teams with valuable insights.

From analyzing employee data, such as emails, chats and work patterns, to detect signs of burnout, disengagement or even misconduct, AI will work as a measure and tool both to improvise communication between HR and employees across organization structures.

Hiring and other support

AI has always been part of recruitment process – Initial interviews conducted by chatbot are now like a SOP. These processes saves time, enhance efficiency and effectiveness . While these are a few common practice that AI will continue to deliver upon, there will also be wide range of tasks, like employee records management, payroll, onboarding- Verifying employee documents , induction training  and performance management that AI will now take over completely.

Breathing life into employee engagement initiatives

As AI enables HR professionals in leveraging machine learning and algorithms to streamline work processes. It will further help in, if not eliminating, then reducing biases, which will further enhance analysis and decision-making of HR . From customizing employee training programs to , creating data-based career paths for each individual instead of traditional generic approach, AI will help employees gain in-demand business skills per their competence and merit. It will further help scout and match up the talent from within the organization for, growth, promotion, and career development opportunities which would have otherwise gone untapped or unnoticed.

For all of its benefits, AI is not flawless and comes with its own pack of challenges

It still requires human programming, which means there’s room for potential errors and biases. If used too frequently to replace regular human interactions, the technology can start to make work environment distant and alienating.

This, in turn, can be counterproductive and may even hurt employee satisfaction which can lead to negative retention rates in the organization.

The flipside to AI in HR

Too much of AI intervention can be detrimental for the organization and its employees.

So, we need to watch-out for pitfalls before integrating machine learning and other ‘smart’ technology into every process.

Even machines can err!

Errors in the programming can result in misinterpretation of data, so before leaving important reports analysis and decision-making entirely up to AI, we need to keep a close watch on likely errors that can be machine generated.

Perpetuating biases in hiring

Use of AI in sorting candidatures can still unintentionally set biases and eliminate qualified, diverse profiles. This can well happen in case the initial parameters set up in the program include implicit bias. For instance, job boards use algorithms to reflect job applications, however very often the algorithms targets and shows up the profile to the candidates, that it analyzes as the suitable candidature. This process of automation can reinforce stereotypes around specific roles.

Some decisions will always need human intervention

AI is great at analyzing data and presenting useful conclusions however, it can’t always pick on important, non-technical nuances. Ethics, culture, values, emotional intelligence, empathy are much beyond the purview of AI. In HR, we often need to apply the concept of collaborative intelligence specially while delegating tasks. Assigning jobs that require human discernment to read nonverbal cues or tap into emotional intelligence. AI can be a great support mechanism which focuses on optimizing HR-related procedures, however the ones which need emotional response, will always require human intervention.

Increased risks to cybersecurity

Sharing sensitive personal or company data through apps leave us open to cyberattacks or identity theft. As chatbots and applications which are great vehicle for streamlining routine HR transactions can also be easy and soft targets for hackers.

Integration into existing systems

One of the most common challenges faced while implementing AI solutions is integration into the existing systems, such as CRM or ERP systems. The process can be complex and require careful planning to ensure that the AI system works seamlessly with the existing infrastructure. Businesses need to work closely with IT department or a third-party specialist. Compatibility, data transfer, security are few prime challenges that needs to overcome before such integration.

Talent & cost challenges

AI is a complex field and requires specialized skills and expertise. Many businesses struggle to find and hire employees with these skills to develop and implement AI solutions. To overcome this hurdle, businesses need to invest in training and development programs which then comes at a considerable cost.

Developing and implementing AI solutions is often expensive, especially for small and medium-sized businesses. The hardware, software, and personnel cost can add up quickly, making it difficult for some businesses to justify the investment.

Careful evaluation of the ROI vis a via its potential benefits like increased efficiency, improved decision-making, and cost savings can help organization arrive rational conclusions.

In the end,

No technology can fully replace humans. Even AI-based tools that automate tasks are made by humans and, therefore, prone to errors.

While Artificial intelligence will continue to have a huge place in HR. We need to remember the keys that will help us take advantage of its upside and work our ways through the challenges posed by it.

With the right approach, we can integrate AI successfully into HR processes and keep the business ahead in today’s evolving workplace.