Artificial Intelligence is here to stay. The innovative technology is being used in different ways and the HR department looks to be leading the implementation. HR can lead the AI innovation and help organisations save billions in the meantime.
According to the 2017 survey from the Human Resources Professional Association, 52% of respondents are still wary of implementing AI across different departments. In fact, Deloitte has found in its research that HR departments are specifically sceptical in adopting AI technology.
This is rather surprising considering the benefits of AI implementation. In a survey by IBM, 66% of executives thought AI to be a significant driver in HR value. Further half of respondents acknowledge that AI can transform key dimensions of HR, helping organisations to perform better.
What are the key ways in how HR could lead AI innovation and provide cost-effective savings to organisations?
One of the best ways AI can boost organisation capabilities is through improved efficiency. The whole purpose of HR is to ensure everything runs smoothly in an organisation and with new AI technology, this job has become easier.
AI’s ability to improve efficiency comes in many ways. It can help in:
- Recruiting talent by making finding talent easier and aligning company needs with what candidates offer.
- Managing employees by utilizing HR management software that gives more agency to the employees, boosting transparency and communication.
- Talent retention by helping with employee motivation and engagement.
With the use of AI, HR can improve efficiency in these key areas. This is possible because AI doesn’t just help automate the processes but also continues to improve as it is used. For instance, machine learning will continuously develop how the software selects candidates. Therefore, the AI can learn what specific company preferences are in terms of finding talent.
AI is also an important tool in boosting transparency within the HR department. The software can be used to provide essential information to both the employer and the employee. The HR department doesn’t have to spend a lot of time and money analysing performance data, for example. Rather, this data can be analysed and provided to both parties.
One of the key reasons AI is important in terms of transparency is through its reduction of bias. When you have humans working on issues such as hiring or employee management, reduction of bias can be difficult. AI doesn’t have this problem – at least to the same extent. This reduction of bias can help employees feel more comfortable with HR decisions and to understand them better.
HR management software doesn’t, therefore, come across as biased against the employee. It adds fairness to the workplace, which is key in terms of employee engagement. Things like payroll management and holiday assignments are handled openly and with fewer errors.
Overall, one huge aspect of the introduction of AI in the HR system is the ability to boost wellbeing. The modern workplace doesn’t always do well and employees can encounter many problems in professional, as well as private, life. Issues like mental health are at the forefront of solving modern workplace problems – not least because the cost of them is huge to an organization.
With AI technology, companies are able to increase wellbeing. One of the major aspects is the use of chatbots. According to an article by Nick Ismail, the AI systems can take care of the “low-hanging fruit of inbound inquiries” in the workplace. This reduces the burden on HR staff and allows them to focus on the more complex issues – simple processes like taking time off or sorting paperwork can be managed with HR management software.
But the AI element guarantees these communications don’t feel mundane or unimportant. AI can seem like talking to real HR personnel. The programs also learn, continuously improving their ability to help.
Reducing costs by implementing simple software solutions
The above three are key to running an organisation cost-effectively. The HR department plays a huge role in sticking to budgets and improving profits. By implementing AI software solutions, organisations could harness these benefits. It’s now up to the organisations to understand the transformative power of HR and to take advantage of it.