HR and AI are two things you rarely hear in the same sentence. In fact, you could say they’re at completely opposite ends of the spectrum, one dealing with people’s performance and processes, and the other based on the technology that helps them perform their roles. But the effects of AI will be as keenly felt in the HR industry as they will in any other.
To help us understand what this impact will be, we hosted a summer roundtable event on AI in HR, inviting senior clients and candidates from the world of third sector HR. Among them was Andy Charlwood, Professor of HRM at Leeds University and an expert in AI, digital technologies and algorithmic management in HR, who joined us as speaker.
The subconscious revolution
When they hear the term ‘AI,’ most organisations will think of ChatGPT and reports of AI’s potential threat to human occupations. They might even look at AI as something they need to be wary of. But AI is becoming more and more prevalent in most organisations, regardless of whether or not they’re aware of it. Quite often, it’s already contributing in the background of their tech or HR systems. For example, AI now spans the entire SAP SuccessFactors Human Experience Management Suite to guide every people decision. Like it or not, AI is already becoming the technological lifeblood that helps to keep our businesses running smoothly.
Elevating performance
There’s widespread concern that AI could surpass and ultimately replace many facets of human performance, but Andy feels it could actually be used to enhance human performance. He’s come across a great deal of research indicating that AI will become a huge boost to average or underperformers, helping them raise their performance levels and bridge the gap to the top performers. In task management, for example, certain tools utilise machine learning algorithms to analyse task dependencies, allocate resources and provide reminders to keep people on track. This will allow individuals to streamline their workflow and increase their productivity.
Policies and processes
HR brings a whole raft of data privacy and security concerns. Organisations need to understand and communicate how they will collect, store and protect the data used by AI systems, and Andy’s seeing some organisations pulling together usage policies around the likes of ChatGPT. We’ll inevitably see more and more policies coming into force as AI becomes ever more prominent in organisations’ processes.
It’s easy to forget, but humans decide how and where to incorporate AI into their businesses. That means AI systems can reflect human biases and prejudices, so it’s important to have the right framework in place to prevent unconscious discrimination. We could see legal and compliance teams expanding as organisations seek to understand and manage the regulatory impact of AI on their people.
Recruitment reimagined
AI could have a huge potential impact on the recruitment process by assessing job seekers’ skills, experience, behaviours and attitude. Organisations are still struggling to navigate this to ensure an equitable playing field and the validity of their assessment. Some are considering entirely virtual recruitment processes, including AI sifting of applications and video interviewing and psychometric testing which is assessed by a bot.
Could these processes potentially remove the need for recruitment professionals? Far from making recruiters irrelevant, AI could, almost contradictorily, strengthen relationship building in recruitment. Rather than being bogged down in time-consuming admin and sifting through potentially hundreds of applications for every role, recruiters will be freed up to act as the go-between linking hiring companies with potential candidates, gaining an in-depth understanding of their client’s requirements, their candidate’s aspirations, and bringing the two together. Perhaps that’s something AI could do perfectly well, but the empathy, support and guidance of an actual human being will make job seekers feel like a real and valued part of the process.
Keeping up with large language models
Large language models (LLMs) are deep learning algorithms that can perform a variety of natural language processing (NLP) tasks. Understanding and generating text in a human-like fashion, LLMs can help to analyse employee feedback, identify drivers of engagement and detect early signs of burnout. We can also use them to build tailored employee experiences and identify skills gaps and development needs.
But, says Andy, LLMs are developing faster than most organisations’ understanding of them, which is going to make it very tough for senior HR leaders to stay on top of them. It’s important that organisations ignore incremental upgrades that won’t affect their business and focus only on truly groundbreaking models aligned with their business goals. Letting your people guide LLM decisions will ensure everyone feels involved in the process and keep LLMs relevant to your people’s needs. You also need to move quickly, ideally piloting any potential LLM before you take the plunge, and seek out LLMs that will elevate the HR function, rather than those that you think you should have.
Investigo Public Sector’s interim strategy bench is a network of independent strategy and management consultants who can futureproof your business. If you’re a business leader looking for an expert to help you understand the impact of AI on your organisation, find out more about our interim strategy bench here.
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