Sage Group plc

07/16/2024 | Press release | Distributed by Public on 07/16/2024 11:20

Humanising HR: the magic of AI in empowering people and processes

AI will create a significant step change in the way HR operates, driving smarter decisions and fostering a more human-centric approach.

From virtual assistants streamlining administrative tasks to personalised learning and development initiatives, AI is already making waves in the HR space. In fact, a third of HR leaders told us they use generative AI (GenAI) tools such as ChatGPT in their roles, and 78% want to integrate AI more within HR tasks.

While adoption rates are still in their infancy, HR leaders are excited about the technology, with the majority anticipating that AI will create more jobs, improve job satisfaction, and foster stronger c-suite relationships.

Our new eBook, Unlocking the power of AI in HR, is a practical guide for HR leaders to understand the benefits AI can deliver now - and in the future - with tips and advice from industry experts. It covers the key considerations around the ethical use of AI at work, the future impact of AI in HR on skills and jobs, and current use cases for the technology.

In this article, we discuss:

  • What we mean by AI in HR
  • Where the technology is already making strides in HR
  • Highlight the seven ways AI is benefitting HR leaders today

Smart, intuitive, efficient tech

When we talk about AI in HR, we're referring to a family of smart technologies and techniques that can help automate, streamline, or enhance many HR processes and functions. Intuitive technology with the ability to take the guesswork out of decision-making, easily interpret data, and highlight issues and opportunities well ahead of time.

Automation and AI are frequently paired together, and although there's an element of automation within AI tech, AI adds a whole other layer of assistance on top.

As Ben Eubanks, Chief Research Officer at Lighthouse Research & Advisory and author of Artificial Intelligence for HR, puts it: "Automation is repeating what we've already done, AI is about using what we've already done to predict possible future outcomes, such as matching candidates to job openings, or even matching development opportunities to the workforce."

AI in HR today

Artificial intelligence has made significant strides in certain areas of HR, particularly in recruitment, training, performance management, and analytics.

"AI finally makes use of big data in a way we can handle," says Perry Timms, Founder and Chief Energy Officer of PTHR. "Some great examples in HR are AI to help people access knowledge to create organisational wisdom in decision-making based on prompted parameters - like capability gaps."

AI's automation capabilities are also invaluable in streamlining tasks like writing policies, job adverts, and responses to applicants, saving time and effort.

"Gone are the days of working from scratch, [GenAI] recently helped us write over 400 job profiles which was a core feature of our new global career model," reports Claudia Sneddon, Global Talent Acquisition Director at Expleo Group

By harnessing the predictive capabilities of AI, HR leaders can make data-driven decisions, anticipate future trends, and proactively address challenges in talent management, workforce planning, and employee engagement, ultimately driving organisational success and competitive advantage.

However, the human element remains key, with HR leaders' many years of experience still very much valid to utilise the outputs from the tech to make intelligent decisions.

"Savvy HR leaders are using AI to make predictions, and then using their own judgement, expertise and knowledge to make the decision." - Ben Eubanks, Chief Research Officer at Lighthouse Research & Advisory

7 ways AI benefits HR leaders today

The landscape of AI tools and software in HR is evolving rapidly, with new applications and use cases emerging steadily.

In terms of the tech itself, there are two main approaches: standalone AI software and AI-enabled solutions. Standalone software focuses solely on AI-driven tasks like talent acquisition and performance evaluation, often requiring integration. AI-enabled solutions seamlessly integrate technology like natural language processing and machine learning into existing HR platforms, extending the capabilities of those platforms.

Both approaches offer distinct advantages. Read on for our summary of the seven ways AI is already being used in HR today and how it can benefit HR.

  1. Automation of routine tasks
    • AI-powered tools and platforms are enabling the automation of repetitive and time-consuming tasks such as resume screening, candidate sourcing, scheduling interviews, and even initial candidate assessments.
    • Benefit: Frees up HR to focus on more strategic initiatives and tasks that require human judgement and creativity.
  2. Improved candidate experience
    • AI-powered virtual assistants are increasingly being utilised in HR to provide immediate responses to candidate queries, guide them through the application process, and offer personalised communication
    • Benefit: Enhances the overall candidate experience by providing timely and relevant information.
  3. Data-driven decision-making
    • AI technologies enable HR leaders to gather and analyse vast amounts of data from various sources, including employee feedback, performance metrics, and engagement surveys.
    • Benefit: Enables HR to identify trends, predict future workforce needs, and make informed decisions regarding talent acquisition, retention, and development strategies.
  4. Enhanced recruitment and talent management
    • AI algorithms can help identify top candidates by analysing resumes, social media profiles, and online behaviour patterns to match them with job requirements and company culture. Additionally, AI-powered assessment tools can provide insights into candidates' skills, competencies, and cultural fit.
    • Benefit: Faster time-to-hire, lower recruitment costs, and more effective hiring decisions.
  5. Diversity and inclusion initiatives
    • AI has the potential to mitigate biases in the hiring process by focusing solely on candidates' qualifications and skills rather than demographic factors.
    • Benefit: By removing unconscious biases, AI can contribute to creating more diverse and inclusive work environments.
  6. Skills gap analysis and learning solutions
    • AI can assist HR in conducting skills gap analyses by analysing current employee skills and identifying areas for development. Furthermore, AI-powered learning platforms can deliver personalised training content tailored to individual employee needs, preferences, and learning styles.
    • Benefit: Identify skills gaps across the organisation more quickly and allocate resources accordingly.
  7. Employee engagement and retention
    • AI tools can help HR leaders gauge employee sentiment, identify factors contributing to disengagement, and predict turnover risks.
    • Benefit: Improve employee retention and foster a more positive workplace culture.

Delivering a more human experience

The magic of AI lies in its ability to understand, adapt, and interact in ways that resonate with human behaviour and needs. In our eBook, we explore how AI not only has the ability to generate a more human experience when interacting with technology, but can actually empower HR leaders to work in a more human way.

AI can personalise experiences, understand emotions, and anticipate user needs through advanced algorithms and learning capabilities. This makes interactions with HR technology - for both HR and employees - feel more intuitive and human-like.

While AI isn't a silver bullet for every HR challenge, implementing it wisely, ethically, and strategically will free HR up to be less process-driven, and more people-focused. The panacea most people professionals have been striving towards for a long time.