Human resources professionals face significant challenges in today’s employment environment. Organizations in many industries face persistent and growing talent gaps. Employee engagement remains low, with many organizations struggling to meet the expectations of today’s workers. Return-to-office mandates are creating tension with employees who prefer the flexibility of remote and hybrid work models.
HR pros must find ways to navigate this complex landscape. Attracting top talent, keeping employees engaged and maximizing retention are high priorities. HR teams must also create and maintain a culture of leadership development and upskill workers to take advantage of AI and other emerging technologies. These activities must be performed within the framework of increasingly stringent legal and regulatory requirements.
Generative AI can help HR teams address these challenges. AI-powered tools can automate data entry and other manual tasks, increasing efficiency, reducing costs and enabling HR professionals to focus on strategy. AI can also analyze employee data to help optimize processes and provide the insight needed for better decision-making.
However, gen AI can perpetuate and amplify bias in recruiting and development and create ethical issues and privacy concerns. Organizations must develop strong policies around AI implementation, management and use to reduce the risk of potential legal pitfalls.
How to Leverage Gen AI in Human Resources
Automation
Many HR teams still enter data manually — a slow, error-prone process. Gen AI can automate this task for greater accuracy, faster onboarding and offboarding, and improved change management. AI can also answer routine employee inquiries, automate some communications with employees and candidates, and handle benefits enrollment and claims processing. The result is greater efficiency and an improved candidate and employee experience.
Recruitment and Onboarding
Recruitment is perhaps the best-known application of AI in HR. HR teams have been using automated tools to screen candidates for years, but gen AI takes this to the next level. AI adds a level of intelligence that goes beyond simple keyword searches, enabling it to sort through resumes and prioritize promising candidates more effectively. AI-powered tools can also customize onboarding based on each new employee and automate the process for a positive experience.
Training and Development
AI-powered tools can analyze employee data to create personalized learning programs based on existing skills and job requirements and to address common mistakes and performance problems. These programs can also be tailored to the individual employee’s needs, goals and learning style. AI can generate and deliver training in various formats, and even provide on-demand training and support via chatbots.
Data-Driven Decision-Making
Gen AI can analyze data to provide HR leaders with insights and recommendations. For example, AI can help identify high-potential employees as well as those in need of performance improvements. By analyzing communication patterns, surveys and other feedback mechanisms, AI can help HR leaders measure and improve employee engagement. AI can also spot potential compliance issues and help HR leaders take action before they become a problem.
Challenges of Gen AI in Human Resources
Bias presents one of the thorniest problems with using gen AI for HR. AI algorithms can reinforce discriminatory practices in hiring, performance evaluations, terminations and other HR decisions. The decision-making process within an AI algorithm can be opaque, making it difficult to explain or justify certain outcomes.
Over-reliance on AI can lead to a less personalized employee experience, neglecting the need for human interaction and empathy in certain situations. Additionally, AI-powered tools may not be able to adapt to complex or nuanced situations requiring human judgment. For example, AI can miss candidates who have high potential but don’t exactly fit the criteria set by the algorithm.
Many HR teams are struggling with outdated and overly complex technology. Integrating AI into existing HR systems may require significant technical expertise and adaptation. Many organizations also lack the high-quality data needed to train and run AI algorithms.
How Cerium Can Help
Cerium Networks understands the potential benefits and drawbacks of gen AI in HR. Let our team help you identify potential use cases, develop proofs of concept and implement proven gen AI tools that can streamline HR processes. We can also integrate gen AI with your existing systems to maximize efficiency. Contact one of our AI specialists to learn more.
