AI, or Artificial Intelligence, has become a buzzword in recent years, leaving many curious about its potential impact across many workforces…including Human Resources (HR).
While many are excited about every innovation in the AI world, plenty of people feel uneasy about the emergence of new technology…
“Will AI steal our jobs?”
“Will AI replace humans in [insert role here]?”
“Is AI evil?”
It may surprise you to learn that AI isn’t a new term at all. And, while we aren’t experts in media and journalism, it goes without saying that new and exciting (or intimidating) breakthroughs are often written about through the lens of fear and sensationalism — sometimes lacking context altogether.
We aren’t here to take a stance for or against AI in general; we do believe that AI can — and should — be utilized as a tool to improve efficiency in HR.
But, that doesn’t mean there aren’t risks involved.
We’ve written this blog to a) provide clarity/debunk some of the fear and myths surrounding the ‘AI takeover’ and b) share a bit about the history of AI, how it can be utilized in the present, and what the future (may) hold for AI in HR specifically.
If you need help incorporating AI at your business (or, with your current HR processes as a whole), check out our website for more!
DISCLAIMER: All images in this blog are AI-generated, and ~30% of the written content is as well. This blog still required several hours of skilled human effort and attention to reach its current state.
What is Artificial Intelligence?
Artificial Intelligence (AI) is a technology that enables machines to perform tasks that typically require human judgement. AI encompasses various techniques, including machine learning and natural language processing.
A calculator, for instance, is not AI because a qualified human can mathematically prove each equation manually using logic. AI goes beyond this, solving problems that humans can solve, but cannot explain how exactly we solved them. This is sometimes referred to as Polanyi’s Paradox.
AI can analyze copious amounts of data, recognize patterns, and make predictions or decisions based on that information. It has applications in diverse fields, including HR.
AI is a tool that can be harnessed to improve efficiency, accuracy, and decision-making.
There are many common forms of AI, including (but not limited to) chatbots, AI designed for automation, and learning models like ChatGPT, Bing AI, and Jasper AI. In HR, JazzHR, Rippling, Workable and Lever are popular Applicant Tracking Systems (ATS).
Is AI a new concept?
…No!
As much as AI may seem like a relatively new, enticing, and for some, terrifying concept, it’s important to draw attention to the fact that AI can be traced back to the mid-20th century….so no, it isn’t an entirely new concept, nor should it be a frightening one.
One of the pioneering developments in AI was the creation of the programmable digital computer, which provided a platform for further research and experimentation.
It’s time for a brief history lesson: In the 1950s and 1960s, researchers Alan Turing, John McCarthy, and Marvin Minsky made significant contributions to the development of AI, including the concept of machine learning and the first AI programs.
These researchers developed an AI that could play Checkers and Chess!
At that time, it looked like rule-based, symbolic, artificial intelligence had the best odds of long-term success. Unfortunately, it could not scale with all of the contextual complexities of life as it has repeatedly proven impossible to program for every possible input or nuance.
There were peaks and valleys throughout the 1970s, 80s and 90s. Twice during that period, we experienced AI Winter, which was a long stretch without major progress in this field. Many wrote off the long-term viability of artificial intelligence ever reaching a level that could challenge the human brain.
Starting in the mid-2000s, however, a once widely dismissed form of artificial intelligence made a comeback. That being the pattern recognition-based and neural network-driven machine learning approach.
This is because of our advancements in computing technology (i.e., lower costs), the amount of data we have available (i.e. “Big Data) and our improved understanding of algorithms.
Advances in the field of AI have become more frequent and more useful in real-world applications during these last 15 years. Then it exploded into the mainstream last year with the launch of ChatGPT and other related tools, although in reality, it has been lurking behind the scenes in much of the technology we use every day for over a decade.
What is the role of AI in HR?
A lot of discourse surrounds the narrative that AI is here to take over and steal jobs.
While we certainly cannot speak on behalf of every business or every form of AI currently being developed, AI still requires human oversight and input to get the desired results.
When used responsibly and ethically, AI has the potential to augment human capabilities, drive innovation, and deliver valuable benefits to businesses.
In HR, AI can automate repetitive tasks, enhance candidate screening and matching, provide personalized employee experiences, and enable data-driven insights.
Let’s take a deeper dive into AI in HR:
Automation
First and foremost, AI plays a crucial role in automating repetitive and time-consuming tasks.
Business owners can embrace AI to empower their organizations and contribute to their success in the modern digital age.
AI can free up time for you and your HR team and handle some repetitive tasks (and mundane ones) more efficiently.
But AI’s role doesn’t stop there. Automation is one thing, but AI can also expand beyond routine tasks…
Data Analysis and Decision-Making
By crunching massive amounts of HR data, AI can identify patterns, trends, and insights that might have eluded even the keenest human eye.
An example of this in HR could be utilizing predictive AI models to predict employee engagement or turnover rates — which can help you make better hiring decisions and reduce turnover costs over time.
(For some, it may feel like having a data analyst in their corner on demand!)
Applicant Tracking
Using AI to track applicants and filter potential top candidates can help improve your Talent Acquisition process immensely!
Rather than screening applications individually (which could take hours and could be biased due to human error), AI can be used to detect promising applications based on specific experience, key qualities, and credentials.
General Usage
AI is vast — many forms are available — and several are free to try.
For example, Grammarly can be used by HR professionals (and anyone in any field) to double-check their grammar and spelling.
ChatGPT is a great tool if you’re struggling to rewrite something or phrase a particular piece of information — this may help with job postings, formal emails, and anything in between. It can also be helpful during the ‘brainstorming’ phase of research.
The way we see it, there’s no harm in using a tool that can help you grow professionally, save time, and avoid common mistakes.
Before the emergence of AI, humans routinely utilized dictionaries, thesauri, and calculators — this tool is no different in our eyes, just more efficient.
However, it’s important to remember that (as we always say at Castle HR)…
Google does NOT have an HR degree…neither does AI!
Always double-check the output and do your research…you’re a professional in your field; AI is not! If something sounds slightly off, or even if it doesn’t, it’s always a good idea to double or triple-check the “facts” generated by an AI tool.
Robots can (and often do) make mistakes; in most cases, whatever output you produce will still need a human touch.
Will AI replace human professionals?
Let’s debunk a myth: AI (probably) isn’t evil and certainly isn’t going to replace human HR professionals en masse any time soon.
Like any fresh concept or foreign notion, online fear-mongering only draws attention and engagement. Right now [in 2023], the emergence of new and smarter AI models has been a trending news story week after week. Many media outlets and social channels know that people respond to outrage and fear (more easily than they do to mundane or pleasant stories), so often, the ‘impact’ of AI is framed as negative.
Similarly, many outlets do not provide context or may give a very extreme example when discussing AI.
Sure, we can only speak from our opinions here at Castle HR, which could vary by industry. But we firmly believe AI isn’t innately ‘bad,’ and is nowhere close to completely replacing humans at this time.
AI can certainly impact many jobs…but ‘impact’ does not automatically mean ‘replace.’
Think of it this way: A contractor typically works more efficiently with a drill.
But a drill on its own (or in the hands of someone inexperienced) won’t get anything done.
A skilled human + the right tools = a job well done.
The same can be said for AI.
How can AI enhance HR processes and decision-making?
One of the most exciting ways AI enhances HR processes is through automation.
Tedious manual tasks like sifting through stacks of resumes or managing heaps of employee data can require a LOT of your (or your HR professional’s) time and energy.
…that time and energy could be better spent elsewhere.
With AI, you can automate these mundane tasks and leave time for more meaningful work that an AI cannot do. In many businesses, AI is used to simplify payroll and benefits, vacation tracking, onboarding and even performance management. HRIS tools like Collage and Humi can manage such tasks.
AI isn’t just about automation but also smart decision-making!
AI algorithms analyze vast amounts of data to extract valuable insights and patterns that humans might overlook — or would have to spend ample time gathering and analyzing.
This data enables HR professionals to make data-driven decisions, like predicting employee turnover or identifying skill gaps. AI can also enhance employee engagement through learning and development and surveys (which can provide leaders will valuable insights, too).
AI can serve multiple purposes in HR departments and benefits leaders, HR professionals, and other team members in many ways.
What are the benefits of incorporating AI into HR practices?
The benefits of incorporating AI into your HR practices are plentiful:
Efficiency
AI automates repetitive and time-consuming tasks like resume screening, candidate sourcing and scheduling interviews.
This turbocharges your HR processes, allowing you to accomplish more in less time.
With AI as your trusty sidekick, you’ll have extra bandwidth to focus on strategic initiatives and creating a delightful employee experience.
Accuracy
Human error is an inevitable part of any manual process.
AI isn’t perfect, but when it comes to overall accuracy and precision, it’s very reliable.
By leveraging machine learning algorithms, AI can consistently analyze vast amounts of data. This means fewer errors, improved data integrity, and more reliable insights to drive your HR decisions.
Insights
AI can sift through mountains of HR data, identify patterns, and extract meaningful insights to inform your talent strategies.
From predicting workforce trends to identifying high-potential employees, AI provides invaluable information to make informed decisions and stay one step ahead in talent management.
Personalization
AI enables HR practices to become more tailored and employee-centric.
By leveraging AI-powered tools, you can create personalized learning and development plans, recommend relevant career paths, and deliver customized employee experiences.
It’s like having a concierge service for your workforce, ensuring each employee feels seen, valued, and supported.
Diversity and inclusion efforts
AI can help identify unconscious biases in hiring and promotion processes, enabling HR professionals to make fair and objective decisions.
By minimizing biases, AI promotes a more diverse and inclusive workplace, fostering innovation, creativity, and a sense of belonging among your employees.
*Note that a Modern Talent Acquisition strategy component, interview scorecards, can be used in conjunction with AI to eliminate such biases — your AI tool is NOT an interviewer or recruiter.
More on that below…
How can AI be incorporated into the hiring process?
Plenty of articles are circulating online about AI’s rapid development and how it will soon replace humans.
While nobody knows for certain what the future of HR (and humanity) looks like, we can say with great confidence that AI will not replace key players in the hiring process anytime soon…but it CAN be incorporated!
AI can augment human hiring managers’ capabilities and supercharge their efficiency.
AI excels at handling repetitive and time-consuming tasks!
It can automate aspects of resume screening, candidate sourcing, and even initial assessments, freeing up recruiters’ time to focus on what they do best: conducting a structured interview (focusing on their Talent Acquisition strategy and getting the right people in the right seats)… and making informed hiring decisions from there.
AI brings a powerful analytical edge to the table.
By analyzing vast amounts of data, AI algorithms can identify patterns, skills gaps, and potential candidates that might have been missed otherwise.
AI enhances the candidate experience.
Chatbots and automated responses powered by AI can provide instant responses to candidates’ queries, ensuring they receive timely information and personalized attention throughout the recruitment process.
This level of responsiveness and engagement creates a positive impression and showcases your organization’s commitment to a seamless candidate journey.
The same is true for the onboarding experience — a lot of training, learning and development, and administrative tasks that come with hiring someone can be delegated to your chosen AI tool.
Ultimately, AI and business owners/hiring managers are a dynamic duo, each bringing their unique strengths to the table.
While AI streamlines processes and provides valuable insights, the human touch, empathy, and intuition truly make a difference in finding the perfect candidate match.
So, rest assured, AI is not here to replace department managers, HR professionals, business leaders or even recruiters… but to elevate their impact and make their roles more strategic and fulfilling.
Risks and Considerations: What are the limitations of AI in HR?
With great power comes great responsibility — there are a number of ways AI can be misused and several limitations that you must consider before diving down an AI rabbit hole.
Consideration: Transparency
As AI algorithms make decisions that impact employees’ lives, it’s vital to ensure transparency in the processes and criteria used.
HR professionals and business leaders must be able to explain the rationale behind AI-driven decisions, especially in sensitive areas like hiring, promotions, and performance evaluations.
Furthermore, your Employee Handbook MUST provide employees with transparent information about how AI will be used at your company.
How you utilize AI as a tool is up to you, but when privacy is at stake (and decisions are made based on AI), you should absolutely disclose this to your team to avoid any legal mishaps.
Transparency builds trust and safeguards against biases or unfair treatment.
Consideration: Privacy and Data Protection
Privacy and data protection are also paramount — this goes hand in hand with our above point.
AI systems rely on vast amounts of data, and HR professionals must handle this data responsibly and securely.
It’s crucial to comply with applicable privacy laws and regulations, implement robust data protection measures, and obtain informed consent when collecting and using personal employee data.
It is also imperative that you do NOT feed very sensitive information into an AI model.
Protecting employee privacy builds trust and maintains a positive employee-employer relationship.
Consideration: Bias Mitigation
While AI can potentially minimize biases in HR processes, it can also inadvertently perpetuate or amplify existing biases if not properly managed.
AI systems learn from historical data; if that data contains biases, the AI algorithms may unknowingly perpetuate those biases.
HR professionals must ensure that the data used to train AI models is diverse, representative, and free from discriminatory patterns. Regular audits and evaluations of AI systems can help identify and address potential biases.
Ensuring fairness and equal opportunities for all employees throughout the AI implementation journey is important.
Consideration: Training
Implementing an AI tool is one thing, but understanding it is another.
When incorporating AI into HR at your business, you should ensure that a) the AI serves a purpose and b) the team using it has an adequate understanding of the AI and has been taught how they are expected to use it!
If you or your HR team don’t understand how to use an Applicant Tracking System, you might not get the ROI you hope for…more time and energy may be wasted!
An example of this scenario could be that if your Job Description was written poorly (by a human), your AI may be doing its job well (by matching resumes accordingly). However, it will be screening out good candidates because your key input was flawed.
You may also run the risk of unintentionally introducing biases if you need help understanding how the AI is operating.
Sometimes, AI algorithms can inadvertently introduce biases due to how they are designed or the data they are trained on (as noted above).
HR professionals must be quick to understand how they can report any issues.
Along with biases, AI can make general mistakes. Regular testing, monitoring, and fine-tuning of AI algorithms and tools are essential to ensure fairness, accuracy and equal opportunities.
Tl;dr: don’t implement AI and call it a day…you still need humans (preferably HR experts) to operate and observe the tools they use!
Consideration: Ethics and the Impact of AI
As organizations adopt AI technologies, there may be concerns about job displacement or the dehumanization of work.
HR professionals must proactively address these concerns by fostering a culture of reskilling and upskilling, ensuring that employees have opportunities to adapt to evolving roles and acquire new skills that complement AI technologies.
Technology is ever-evolving…but a professional human touch is still in demand.
Gone are the days when employers were forced to endlessly comb through resumes (with potential unconscious biases present) or attempt to understand complex data to make better decisions.
AI can help improve efficiency and accuracy; your time would serve better elsewhere…imagine what you could accomplish with a few extra hours in your work week!
How can professionals prepare for AI integration?
Preparing for AI integration in any business requires a proactive and strategic approach. Professionals — in HR or any other field — can take several steps to ensure a smooth transition and maximize the benefits of AI:
Develop AI literacy: Gain a deep understanding of AI concepts, technologies, and potential applications. Stay informed about the latest trends, advancements, and ethical considerations surrounding AI.
Assess organizational needs: Identify specific processes that could benefit from AI automation or augmentation. Determine specific pain points, such as repetitive tasks, high volumes of data, or complex decision-making, where AI can make a significant impact.
Foster a data-driven culture: Lay the foundation for AI integration by prioritizing data quality, governance, and security. Invest in robust data infrastructure and establish data collection, cleaning, and management processes.
Build partnerships: Collaborate with AI vendors, consultants, or experts specializing in applications specific to your business. Leverage their expertise to select and implement AI solutions that align with your organization’s goals and values.
Upskill and reskill HR teams: Equip your team of professionals with the necessary skills to leverage AI effectively. Provide training in data analysis, AI technologies, and ethical considerations. Foster a learning culture that encourages continuous development and embraces change.
Change management and communication: Proactively communicate the benefits of AI integration to employees and stakeholders. Address any concerns or fears and provide reassurance about the role of AI in enhancing practices rather than replacing human interaction.
What does the future of AI in HR look like?
The future of AI in HR holds immense promise, but before we explore what that might look like, we should first review what the past and present involve:
The journey of AI in HR has been a fascinating one, from its humble beginnings within applicant tracking systems to its current role as a strategic enabler in HR practices.
As we look back at the past, examine the present, and gaze into the future, it becomes evident that AI is here to stay and will continue to shape the HR landscape.
In the past, many HR professionals were focused on automation and efficiency (using software, not always AI), primarily streamlining administrative tasks and simplifying recruitment processes. However, its potential quickly expanded, paving the way for advanced analytics, predictive capabilities, and personalized employee experiences.
In the present, AI is being embraced by forward-thinking organizations as a tool that empowers HR professionals to make data-driven decisions, enhance employee engagement, and drive strategic workforce planning. AI-powered technologies such as chatbots, analytics platforms, and intelligent automation are revolutionizing HR practices, enabling HR teams to focus more on high-value activities that still require a human touch.
As for the future of AI in HR, several trends and predictions are shaping its trajectory:
Enhanced candidate experience
AI will continue revolutionizing the candidate experience, with personalized chatbots, virtual assistants, and AI-powered assessments becoming more prevalent. These technologies will streamline interactions, provide real-time feedback, and deliver personalized recommendations to candidates.
Predictive analytics for talent management
AI will increasingly leverage predictive analytics to identify high-potential employees, predict attrition risks, and provide strategic workforce planning insights. This data-driven approach will enable HR professionals to make informed decisions and proactively address talent-related challenges.
Augmented decision-making
AI will serve as a powerful decision-support tool, providing HR professionals with data-driven insights and recommendations. From performance management to employee
development, AI will assist in making more accurate and unbiased decisions, ultimately enhancing the effectiveness of HR strategies and initiatives.
Intelligent automation
AI will further automate repetitive and time-consuming HR tasks, freeing up HR professionals to focus on strategic activities. Robotic Process Automation (RPA) will continue to evolve, handling administrative processes such as payroll, benefits administration, and onboarding, allowing HR teams to allocate their time and resources more efficiently.
Ethical AI and bias mitigation
As AI becomes more embedded in HR practices, there will be a growing emphasis on ethical considerations and bias mitigation. Organizations will invest in responsible AI practices, ensuring transparency, fairness, and accountability in AI-driven HR processes. Ethical guidelines and regulations will continue to emerge, guiding the ethical use of AI in HR.
Continuous learning and upskilling
AI will play a significant role in driving continuous learning and upskilling initiatives within organizations. Personalized learning platforms powered by AI will provide tailored development opportunities, enabling employees to acquire new skills and adapt to changing job requirements.
Overall, the future of AI in HR is one of collaboration between humans and machines. AI will augment HR professionals’ capabilities, allowing them to focus on strategic initiatives, while AI algorithms handle data analysis, automation, and decision support. The key lies in leveraging AI to enhance HR practices, improve employee experiences, and drive organizational success.
Conclusion
A tool is only as useful as the person wielding it.
And, when AI is embedded in the tool in question, most applications perform best when a skilled individual uses them.
So, while we can’t speak for every industry, we don’t believe there is any reason to fear AI, and we certainly don’t believe it will replace people at scale.
Yes, AI has replaced some professionals -approximately 5% of layoffs in the US in May 2023 were due to AI — but in retrospect, this number is still quite small.
When it comes to HR, AI is transforming the HR landscape, offering unprecedented opportunities to enhance processes, improve decision-making, and drive strategic initiatives. By understanding the role of AI in HR, dispelling myths, and embracing its potential, organizations can leverage AI as a valuable tool to optimize HR practices and create a future of work that benefits both employees and the business.
As AI continues to evolve and mature, it is essential for HR professionals — and professionals in every other field — to stay informed, adapt to change, and proactively shape the integration of AI in their organizations. By adopting a human-centric approach and combining the power of AI with the expertise and empathy of HR professionals, we can unlock new possibilities and drive meaningful outcomes in the ever-evolving HR landscape.
Want to chat about all things Modern HR? Get in touch with us today!
