How artificial intelligence (AI) tools impact human resources

Technology sometimes moves faster than we anticipate. That feels especially true with artificial intelligence (AI). AI has been automating processes and streamlining work functions for a long time. Yet, when OpenAI launched ChatGPT, only two years ago, it seemed like that’s all anyone could talk about, especially when it comes to work. 

How AI is going to impact human resources workers is important. Such technological advancement, the theory goes, can help expedite certain manual processes in HR departments and optimize better decisions with data compiled from AI tools to back that up. That’s why, according to a report by Gartner, 76% of HR professionals believe that if AI isn’t adopted in some way over the next few years, they might actually be behind the rest of their peers. 

However flashy and exciting AI is in the workplace, moving with the speed of the technology can have some drawbacks. AI is modernizing how HR workers do their jobs but there are limitations. 

Ahead, we’ll guide HR workers and team leaders on how AI impacts their roles, including use cases and challenges, and why a human touch is still going to go the distance. 

What is AI?

Artificial intelligence is a type of computer science that provides machines with the ability to perform certain functions—such as logic, reasoning, planning, learning, and perception—through  algorithms and machine learning. Some AI is sentient, in that it can respond to emotions, but for the most part, the AI tools we use in a business setting are fairly functionally-driven.

Generative and predictive AI have opened a new way to work. They enhance decision-making, streamline operations, and transform HR practices. This leaves more space for creative thinking and implementation. 

Let’s dig into these different types of AI and they can do for you.

Generative AI

Generative AI is designed to mimic human intelligence for specific tasks. The most common example of a generative AI is ChatGPT. Once it receives a prompt, ChatGPT analyzes content for patterns and generates texts or visuals, sometimes summaries or analyses. For example, you can prompt the tool to generate generalized job descriptions based on experience needed, tasks involved with the role, or career development to brainstorm off of to help create original content for your own post.  

Predictive AI

On the other hand, predictive AI identifies, analyzes, and breaks down patterns in past events and general trends. This type of AI tool can make predictions about what’s going to happen in the future. You may use AI to keep a pulse on the recruitment market or to identify key HR or employee management trends. 

Using AI tools in the modern HR landscape

In the US, nearly 40% of enterprise sized organizations are using AI in their HR departments. AI has so many use cases but where it’s most beneficial and useful for HR teams depends on your needs and unique role. It can be used to automate processes, create better workflows, or generate copy to work off. 

These are some of the most significant ways to use AI in HR:

1. Talent acquisition

AI, according to a report conducted by SHRM, is mostly used for recruitment. AI tools can identify and process information about the best places to find candidates for different roles. AI tools, for example, can automate résumé screening to identify suitable candidates. Such AI tools may ensure candidates don't falls through the cracks due to human error. 

These tools have the ability to personalize any communication with these candidates to keep them interested. For recruiters, AI can even help you create detailed profiles of ideal candidates for specific roles.

2. Employee onboarding and training

Once candidates have become employees, the next step is usually a thorough onboarding process. This can be fairly laborious for many HR professionals. AI tools can help streamline this process, as well as provide personalized training plans by analyzing data on their career goals, current performance, and related skills, as well as automate administrative tasks. This can improve onboarding and training overall. 

AI chatbots, too, can act as round-the-clock HR assistants for new hires, providing quick answers to employees’ questions about leave policies, benefits, and other HR concerns. This not only enhances the employee experience but also helps new employees feel supported, knowledgeable and welcomed.

3. Employee engagement and satisfaction

AI tools allow managers to monitor employee performance and identify areas for improvement. These tools can understand employee sentiment by deploying and analyzing surveys, social media or other sources to measure overall satisfaction levels. Once you have a pulse on your team, you can then suggest appropriate training content to help them grow and stay engaged. 

AI is most useful by processing, analyzing and summarizing data. Use this information to help make better decisions about employee engagement solutions.

4. Performance management

Evaluate employee performance by using AI tools to analyze data on key performance indicators (KPIs). The information from these tools can provide real-time feedback and suggest personalized development plans. 

Challenges of using AI in HR

While the benefits of AI in HR are plenty, implementing AI is not without its challenges. These include ethical considerations, data privacy concerns, and resistance to change.

1. Ethics and bias

We like to think of AI as a separate entity from humans. However, all the data it consumes to generate information or analyses is based on content made by people. AI has an inherent bias that everyone needs to diligently monitor. 

One example was when Textio ran an experiment prompting ChatGPT to write job descriptions. These descriptions went from the very generic to the more specific. A key concern that kept coming up throughout the exercise was the inherent gender, racial, and age bias that some of these listings contained. What was even more interesting is that some of these contained keywords that, although not openly discriminatory, were terms that people would avoid when looking for a job.

Ann Handley said in a MarketingProfs webinar: “We can’t give over writing to AI, because writing is thinking!” If AI tools are to be used to brainstorm any writing, ensure that you’re putting in prompts that are useful and precise, using critical thinking to check for inconsistencies and biases. It might be helpful to create a checklist of all the things AI might not account for and always check your content against it. 

2. Data privacy and security

Here’s a familiar story: a coworker takes all of their meeting notes, which includes sensitive information, and drops it into ChatGPT. They want it to summarize the notes, bring out key topics, and identify action items to move forward. Summarizing is a key component of AI functionality.

However, and unsurprisingly, this resulted in a data breach. Now, that information was searchable within ChatGPT and accessible to anyone. Including their competition.

It must be said again and again until it permanently sticks: AI is a tool, not a person, and its sole function is to process an immense amount of data that can be accessed by nearly anyone. If giving over your private information to a stranger is forbidden, the same rules apply to AI tools.

Data privacy is a significant concern when implementing AI in HR. Personal data is the entire realm of HR departments. There’s a risk that sensitive employee information could be misused or data security breached. So it’s important to mitigate these risks by understanding what can go into an AI tool versus what cannot. HR departments must enforce strict data privacy policies. They should use firewalls to control access. They should also train employees on the secure usage of AI. 

3. Loss of human element 

As exciting as the advancements in AI are, it’s crucial to remember that human resources is about people. Maintaining a human element in HR processes is paramount, even as we adopt advanced technology. 

AI tools are a partner, not a replacement, in HR departments. In an AI-driven HR department, striking that balance is critical, and can be beneficial for everyone involved. Technology can support efficiency and data-driven insights, and a professional HR manager can engage with employees and answer questions, and generally respect company culture and individual needs.

This balance can be achieved by focusing on human interaction at every stage of the employee lifecycle, like emphasizing communication and personalizing interactions. 

AI and HR teams: working together

A very common question in almost every field when we talk about AI is: “Is this robot going to take my job?” That’s a valid question! The technology is new, and sometimes the word “optimized” is a euphemism for replacement. Generative AI technologies continue to develop rapidly. The capabilities of these tools right now may change significantly in a matter of years—even months!

What integrating AI tools into HR functions can really be about is streamlining manual processes, not replacing human effort altogether. It’s a tool but you’re the professional.

AI tools allow you to focus on making HR a more iterative process. You have access to data-driven dashboards that can inform decisions. They can help be more transparent about the initiatives you’re running and gain more trust from employees. AI tools can also function as a lookout to help you address issues before they even reach you.

AI tools may actually allow HR professionals to focus on being creative, taking away hours spent on manual and administrative tasks. It can let you reconnect with your team.

Focus on training your teams. AI tools don’t need to needlessly complicate existing workloads. They can be useful partners to assist you in what can hopefully be stronger human connections elsewhere in your processes and in your people operations initiatives.