Gen AI in HR

There is no denying the fact that AI has transformed the way we look at many business functions, with generative AI (gen AI) making it much easier to use AI tools for strategic planning and decision-making. Although uptake of AI tools has been slow in the HR space, gen AI tools can amend your HR capabilities significantly.

What is AI in HR?

AI in HR has been steadily gaining popularity as its implications for creating personalised experiences and streamlining processes are becoming clearer. Gen AI has a great potential to help with activities like writing job descriptions, developing personalised learning plans, designing training simulations, building chatbots to help employees, or aiding data-driven decision-making within the HR landscape. This can help improve hiring, training and development, employee engagement, and productivity significantly. Although there are risks of potentially biased training data or data privacy issues, the potential for gen AI in HR far outweighs these risks.

Implementing Gen AI in HR

More than 80% of HR leaders have implemented – or at least explored the possibility of implementing – gen AI solutions within their organisations. But as the AI landscape is evolving at warp speed, HR leaders must be mindful of the capabilities and available use cases when planning the effect of gen AI on their HR functions and organisation as a whole.

The three key areas HR leaders must focus on when implementing gen AI solutions include:

• Preparing for AI adoption:

  A 3-step approach – distinguishing reality from myths, establishing the true and realistic potential of the technology, and assessing and scoring against success criteria – can help organisations drive success with the help of gen AI tools in HR functions.

• Planning for workforce impact:

  Gen AI tools have the potential to dramatically impact how a company hires, develops, and nurtures its human capital. HR leaders and senior executives have to build an AI talent strategy that can achieve the desired workforce impact for your organisation.

• Getting HR functions ready

  Gen AI tools have the potential to dramatically impact how a company hires, develops, and nurtures its human capital. HR leaders and senior executives have to build an AI talent strategy that can achieve the desired workforce impact for your organisation.

• Getting HR functions ready

  Gen AI tools will impact how different HR functions operate across the employee lifecycle. As AI gives rise to new expectations surrounding how employees interact with different HR functions and technologies, it will lead a shift towards rethinking and restructuring different HR functions, purposes, and roles.

How does Gen AI impact HR?

Gen AI has played a key role in transforming HR into a more strategic and data-driven function as senior executives have started looking at HR as a partner through different stages of the business. As HR shifts its focus from administrative tasks to being a strategic transformation partner, organisations can expect gen AI to have the following impact:

• Improved HR self-service
• Enhanced employee experience and productivity
• Personalised delivery of HR services
• Enriched data-driven talent ecosystem

HR leaders are in a unique position to drive workforce transformation as the further implications of gen AI become clear. This involves leading the gen AI transformation by example, starting by evolving their own functions that can help drive a broader change to bring the new capabilities and objectives of this technology within reach.

These capabilities are no longer just ideas but probable use cases that have the potential to shape the future of HR functions in how companies attract and recruit new talent, manage their employees, or optimise workplace productivity. The major HR functions these use cases encompass are:

• Recruitment and selection
• Training and development
• Talent management
• Performance evaluation
• Employee engagement
• Employee well-being management

These are just some examples of HR functions that can glean transformative benefits from gen AI tools. And if you want to leverage the potential of gen AI to transform your HR, working with the right Generative AI Business operations is crucial. From reimagining your business processes for AI-readiness to reinforcing AI ethics, working with the right gen AI tools is the key to sustainable competitive advantage.