AI in HR - Opportunities and Challenges

Manage HR Magazine | Wednesday, September 18, 2019

AI seems promising in the HR space as the experts are expecting it to transform every aspect of HR processes.

FREMONT, CA: Artificial intelligence (AI) is enabling several industries to transform their work culture and streamline their processes. Human resources (HR) have relied largely on conventional processes with minimal technological interference. Even the incorporated technologies focused more on sorting the candidate's CV based on the criterion that wasn't exhaustive enough to cater to the requirements. AI seems promising as the experts are eyeing its potential to transform every aspect of HR processes. AI can be used to streamline the recruitment process. From allowing the chatbots to decide upon the best questions to ask new potential employees to streamline the recruitment process, AI can provide an edge to the industry.

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Apart from the recruitment process, AI can play a role in highlighting performance issues, and in identifying changes in employee sentiment. It can even make recommendations over the termination of employment. There are several other means in which AI can be useful for HR teams. However, the major conflict that arises here is whether AI can actually fit into the industry as it promises, especially as the industry relies heavily on human interactions?

Here is the primary concern that accompanies the technology and its incorporation in the HR sector:

Intelligence that Lacks Human Factor

Experts are enthusiastic over the application and vast scope of AI within the HR process. However, the technology tends to undermine human rational and makes a decision purely based on process rather than common sense to intervene and make alteration as and when necessary.

Further, AI is only as good as the data that are fed into it. The technology's learning process leverages past experiences and then applies the information for a series of decision-making processes. In case the past data turns out to be incorrect, AI decisions can severely affect the businesses.

Lack of Humans in HR

The adoption of AI across HR processes poses a concern to the employment of several HR professionals. Despite the initial gains in terms of speed and costs, the long term impact of AI will be the elimination of the human experience which can lead AI to make poor decisions as the sector is highly human-centric inevitably. Moreover, one poor decision is likely to get compounded with time. Still, the ability of AI to learn from past experiences and make decisions based on them is the reason why several HR software vendors are eyeing towards incorporating AI into their services and products.

Limited Scope of AI

Even though AI can easily and effectively replace the redundant HR processes, several areas require human despite the technology:

• Recruitment and Staffing includes the entire recruitment and selection process, employee benefits, pay, and the termination of employment. The activity requires ethical hiring practices which are being applied by HR professionals.

• Pay grade and compensation requires the human resource teams for setting, monitoring, and regulating pay grades and scales in an organization. It also requires research into the industry norms as well as gaining insight into the value of each employee to the firm as a whole.

• HRs are also needed for employee training and development. It means that there is a constant requirement for organizational and individual needs.

• Health and safety regulations is another key element where compliance is ensured with the help of HRs. It will also include altering the workplace for compliance and meeting the standards.

• HR professionals are constantly engaged with the goal of optimal performance. It can be achieved via continuous improvement of both the organization and the employees. Several professionals within the industry are interested in introducing implementation via AI where possible. However, AI can't eliminate humans from the HR processes as it needs human input to remain effective at its job.

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