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AI in HR: How AI is Changing the Way HR Operates

An overview of how the integration of generative AI and automation in HR is changing the industry.

Anna Coucke

by Anna Coucke - July 2nd, 2024

The Future of HR with AI

AI is rapidly transforming countless industries and professions, and HR is no exception. From automating repetitive tasks to uncovering hidden gems in employee data, AI is poised to revolutionize the way we manage talent.

However, it’s critical not to dive in too quickly. Businesses looking to enhance their HR processes with AI tools must first understand exactly what they want to accomplish by adopting AI and the potential risks and rewards that should be considered.

A recent McKinsey report found that 80% of executives believe AI will create significant change in their industries by 2030. In HR, this translates to a more streamlined and data-driven approach to everything from talent acquisition to development and retention. 

This means adopting AI-powered tools like: 

  • Resume screening software that sifts through applications, identifying the perfect candidates based on skills and experience.

  • Personalized onboarding experiences guided by chatbots that provide new hires with 24/7 support.

  • Employee performance data analysis to pinpoint areas for growth and personalize development plans.

While some may fear that AI will replace HR professionals entirely, ongoing research suggests otherwise. Forbes emphasizes that AI is here to augment HR's capabilities, not replace them. 

The idea is that as AI handles the tedious administrative tasks, HR professionals can shift their focus to the more human aspects of their role, like fostering a positive work environment and building strong relationships with employees. This human touch will remain critical for organizations to continue to attract and retain the best talent in an increasingly competitive job market.

Balancing the Risks and Rewards of AI in HR

While AI offers an array of benefits, it's important to acknowledge the potential risks. One major concern is bias, as AI algorithms can perpetuate discrimination if they have been trained on data that reflects historical biases. This could lead to unfair hiring practices, skewed performance evaluations, and hinder opportunities for diverse candidates. 

Another risk is data privacy and security. HR handles sensitive employee information, and AI systems can create a target for cyberattacks. Additionally, AI's lack of human empathy can create a cold and impersonal work environment, damaging employee morale and trust.

Mitigating Risks for a Responsible AI Future

So, how can we navigate these risks and harness the power of AI responsibly? HR and business leaders need to be proactive by carefully scrutinizing training data for bias and performing regular audits and data security measures to safeguard employee information. 

When implementing AI tools, remain transparent and upfront with employees about how AI is being used in HR processes. To prevent sensitive information from being shared, don’t input any internal or personal information about your company or employees into AI databases. A good rule of thumb is that if you wouldn’t post it publicly on your company website, don’t input it into a public AI database.

It's important to remember that AI is a tool, not a replacement for human judgment. HR professionals should use AI to inform decisions while maintaining a human touch in areas like performance reviews, decision-making, and employee relations.

The Human Touch with AI-Powered HR

When used responsibly, AI can empower HR to create a more human-centered work environment. This means less time spent on administrative tasks like onboarding, payroll, and benefits administration. 

GoCo's HRIS platform, for example, has an AI knowledge base tool that answers frequently asked employee questions directly on their GoCo account. This gives HR and business leaders more time to focus on what truly matters — employee engagement, coaching, and building strong relationships. 

Other AI tools can personalize the employee experience by analyzing data to identify individual needs and preferences. This allows HR to tailor training and development opportunities for each employee and view progress over time, further promoting a culture of growth and development.

Asking the Right Questions for AI Integration

While AI offers exciting possibilities for streamlining HR tasks and boosting efficiency, it isn’t one-size-fits-all. Simply because a shiny new AI tool exists doesn't necessarily mean it's the right fit for your organization. It’s important to carefully consider where AI can best support your organization in order to optimize its impact.

So, how can leaders navigate the exciting world of AI and automation in HR? Here are some essential questions to ask:

  • Does AI address a genuine pain point? AI shouldn't be a solution searching for a problem. Identify areas in your HR workflow that are repetitive, time-consuming, or prone to error.

  • What data is available, and is it high quality? AI thrives on data. Consider the quality and quantity of data you have available. Is it clean, organized, and relevant to the task at hand?

  • How will AI integrate with your existing HR processes? Disruption for disruption's sake is rarely beneficial. Evaluate how AI will interact with your current HR workflows. 

How to Get Started with HR Automation

Investing in AI and automation solutions can transform your HR department and your entire company. For those looking to automate and streamline their HR, GoCo has everything you need in a single, easy-to-use modern solution that scales alongside your organization. Our mission is to help small and medium-sized businesses spend less time on manual, painful, and complex HR tasks so they can focus on growing happier, more productive teams.

Consistently rated “Best Support,” “Fastest Implementation,” and “Most Likely to Recommend” by G2, our dedicated support team sets you up for success before, during, and after implementation. 

Ready to see how GoCo can help? Take a free tour of our HRIS platform today and start automating your HR!

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