What is the impact of Generative AI on HR Transformation

By Sumit Singla, Senior Partner and Practice Leader, Culture Transformation, BOD Consulting

Generative AI or Gen AI learns patterns and structures from large data sets, and attempts to create new information. Its capabilities go beyond merely data analysis and interpretation into ‘generating’ new content, which makes it a potentially transformational tool.

As a function, HR hasn’t yet completely come onboard with unleashing the true power of Gen AI to make processes more efficient, personalised, and data-backed.

Where can Gen AI be deployed in HR?

Gen AI can find wide applications all across the employee lifecycle. Some of the most impactful areas to address are:

1. Recruitment: Gen AI tools are revolutionising recruitment by automatic resume screening, generating interview questions and tests for specific roles, and even predicting candidate success based on historical data. These tools not only save time and money but also improve the accuracy of hiring decisions.

2. Personalised onboarding: Gen AI can use candidate profiles to create custom onboarding plans for new hires, ensuring each employee receives the right resources needed to succeed. This makes the onboarding experience more effective and also improves satisfaction levels of new hires.

3. Performance management: Gen AI can assist in performance evaluations by analysing performance data and trends, generating insights, and providing clear roadmaps for improvement. This makes for fairer assessments and targeted coaching and development plans.

4. Learning & development: AI-powered platforms can provide personalised learning paths for employees, adapting content to existing competencies and need for skill development.This ensures optimum RoI on training investments and also encourages employees to invest in their own development.

5. HR operations: Automating repetitive HR tasks can free up the time for HR professionals to solve more meaningful problems, improving overall efficiency and productivity.

6. Employee engagement: AI-led personalisation of the employee experience translates into better engagement and retention, by addressing individual needs and preferences.

Overall, Gen AI can provide cutting-edge data insights and support faster and more effective decision-making. However, there can be some challenges that need addressing to make this happen:

AI systems can perpetuate existing biases if your current data is biassed. It is crucial to audit and update data to ensure fairness and inclusion.

Employees may be initially resistant to a piece of code making decisions about their lives and careers. Being transparent and able to explain the rationale behind decisions is key to maintaining trust.

The use of AI can jeopardise sensitive employee data if robust data protection measures are not in place to safeguard privacy.

For the modern HR professional, understanding how to make the most of the human-machine interface is key to unlocking value. This includes understanding AI capabilities, interpreting AI-generated insights, and integrating AI tools into existing HR processes.

What the future of AI in HR looks like

Gen AI will continue to make inroads into the workplace and result in 3 major shifts:

It will become integral to HR strategy, driving decision-making and shaping the future workforce. AI tools will evolve to address emerging HR challenges and opportunities.

New generative AI tools will continue to emerge, offering innovative solutions for talent acquisition, employee engagement, and workforce planning.

As AI automates routine tasks, HR professionals will shift towards more strategic roles, focusing on employee well-being, culture, and organisational development. The workforce will need to adapt to these changes, embracing continuous learning and adaptability.

Conclusion

Gen AI Is poised to speed up decision-making and make HR processes and systems more effective. If you can harness its power without falling prey to the challenges of bias, transparency, and data security, you can leap into the future.

Technological evolution is inevitable, but to set yourself up for success, explore and adopt Gen AI tools, and adopt the ones most meaningful to you. However, the key thing to remember is that the core of the HR function will always be human intelligence and human values.

If you can integrate these with advanced technology available to you, success is yours for the taking.

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