Artificial intelligence (AI) has the potential to revolutionize human resource management by leveraging data analytics, machine learning, and automation to save time and improve outcomes. As AI advances from automation to augmentation, companies are exploring how AI tools can enhance HR for employees and job seekers, providing real-time information, insights, and recommendations.
This shift comes at a time when the workforce is undergoing significant changes. A global study by the IBM Institute for Business Value (IBV) reveals that executives estimate 40% of their workforce will need to reskill due to AI and automation implementation in the next three years. This shift is seen as creating new job possibilities, with 87% of respondents believing that generative AI will augment rather than replace employee roles, though the effects vary by job function.
This transition directly impacts HR departments as companies seek to fill augmented roles and workers adapt to changing functions. The adoption of AI in HR technology has the potential to assist HR teams in this new landscape. Emerging AI tools not only improve efficiency but also drive innovation, enabling HR professionals to think more strategically while maintaining a human touch.
How AI is utilized in HR
AI in HR refers to the use of machine learning (ML), natural language processing (NLP), and other AI technologies to automate HR tasks and support decision-making. It enables data-driven talent acquisition, employee development, and retention strategies with a focus on mitigating bias and enhancing the experiences of job seekers and employees.
AI tools offer capabilities that assist HR leaders in various areas, including:
– Employee records management
– Recruitment and hiring processes
– Payroll processing
– Performance management and assessments
– Benefits administration
– Onboarding new employees
– HR support or service desks
Companies can leverage AI in HR functions to improve decision-making, simplify HR processes for employees, and allocate more time towards making better hiring decisions and investing in employee satisfaction and retention.
Possible use cases of AI in HR include:
– Professional learning and development: AI can recommend personalized training modules based on individual employee data, helping HR managers identify hidden talent or employees ready for promotion.
– Candidate sourcing and hiring: AI accelerates the hiring process by nurturing potential hires and notifying hiring managers of candidate applications.
– Procurement of short-term workers: AI automates manual procurement tasks, saving HR teams time and enabling strategic planning and meeting client needs.
– Onboarding: AI-powered chatbots streamline the collection of information, answer questions, provide reminders, and enhance the new hire experience.
– Automating HR service: AI-powered HR chatbots offer prompt answers and self-service support, improving employee engagement and productivity.
Benefits of AI in HR
Using AI in HR to achieve strategic goals unlocks advanced benefits, such as:
– Enhanced employee support: AI helps understand employees better, improving job satisfaction and performance.
– Increased efficiency: Automation and generative AI save time, allowing HR teams to review processes and make more informed decisions.
– Enhanced candidate experiences: AI aids in reaching and engaging top talent throughout the recruitment process.
Challenges of AI in HR
While AI offers significant advantages, it also presents challenges that need to be addressed:
– Reskilling: AI and automation may impact certain job roles, necessitating reskilling and empathetic restructuring efforts.
– Employee privacy: AI’s use in optimizing processes and evaluating performance may raise privacy concerns. Transparent data management strategies and clear communication with employees are essential.
– Bumpy rollouts: Initial AI rollouts may require adjustments to improve employee experiences.
– Cybersecurity: AI is vulnerable to hacking, and companies should work with IT and security teams to develop robust security plans.
IBM and AI tools for HR
IBM offers AI assistants to support HR teams in finding, onboarding, and supporting great hires.
IBM Watsonx Orchestrate is an AI assistant that frees HR professionals from repetitive tasks, helps them make informed decisions, and streamlines processes related to talent management. It can create job descriptions, search for candidate profiles, compile data for career mobility analysis, and standardize onboarding processes.
IBM Watsonx Assistant empowers employees by providing 24/7 access to HR information and automating frequently requested tasks. It uses natural language understanding to simplify HR policies and integrates with existing technology solutions. The unified “ask HR” support experience improves engagement and reduces the operational burden on HR professionals.