Artificial Intelligence (AI) is rapidly transforming the way businesses operate and Human Resources Management (HRM) is no exception. AI is being used to automate tasks, improve decision-making and create a more personalized employee experience.
According to Oracle, ‘64% of people would trust a robot more than their manager and half have turned to a robot instead of their manager for advice’. Would you?
The beginnings of AI in HRM
The use of AI in HRM can be traced back to the early 1990s, when applicant tracking systems (ATS) were first developed. ATS software uses algorithms to scan resumes and identify candidates who are a good fit for a job opening. Today, ATS software is used by a majority of businesses and it has become an essential tool for the recruitment process.
How AI is being used in HRM today
Recruitment: AI can be used to screen resumes, identify passive candidates and schedule interviews.
Onboarding: AI can be used to automate the onboarding process, providing new employees with the information they need to get started.
Training: AI can be used to create personalized training programs for employees.
Performance management: AI can be used to track employee performance and identify areas for improvement.
Compensation and benefits: AI can be used to automate the compensation and benefits process, ensuring that employees are paid fairly and that they have the benefits they need.
Employee relations: AI can be used to resolve employee conflicts and complaints.
The pros of AI in HRM
Increased efficiency: AI can automate many of the manual tasks that are involved in HRM, freeing up HR professionals to focus on more strategic initiatives.
Improved decision-making: AI can be used to analyze large amounts of data to identify patterns and trends that would be difficult to spot manually. This can help HR professionals make better decisions about recruitment, selection, training and other HR matters.
Reduced bias: AI can be programmed to remove bias from the recruitment and selection process. This can help ensure that all candidates are evaluated fairly, regardless of their race, gender, age or other personal characteristics.
The cons of AI in HRM
Data privacy: AI systems require large amounts of data to train and operate. This data could be used to discriminate against individuals or groups, or it could be stolen or misused.
Job displacement: As AI becomes more sophisticated, it is possible that some HR jobs will be automated. This could lead to job losses in the HR department.
Algorithmic bias: If AI systems are not properly trained, they could introduce bias into the decision-making process. This could lead to unfair treatment of certain groups of employees.
The future of AI in HRM
The use of AI in HRM is still in its early stages, but it is growing rapidly. As AI technology continues to develop, it is likely to have an even greater impact on the way businesses manage their human resources.
In the future, AI could be used to automate even more tasks in HRM, such as performance appraisals, compensation reviews and employee development planning. AI could also be used to create more personalized experiences for employees, such as providing them with tailored training programs and career development advice.
Overall, AI has the potential to revolutionize HRM and make it more efficient, effective, and fair. However, it is important to be aware of the potential challenges associated with AI, such as data privacy and algorithmic bias. As AI technology continues to develop, it is important to ensure that it is used in a responsible and ethical way.
How AI can remove bias and discrimination in HRM
Using objective criteria: AI systems can be programmed to use objective criteria, such as skills and experience, to evaluate candidates. This can help to ensure that all candidates are evaluated fairly, regardless of their race, gender, age or other personal characteristics.
Identifying and removing bias: AI systems can be used to identify and remove bias from the recruitment and selection process. This can be done by analysing data to identify patterns and trends that suggest bias.
Providing transparency: AI systems should be transparent about how they make decisions. This will help to ensure that candidates understand why they were selected or rejected for a job.
Who is using AI in HRM already
A study by the Society for Human Resource Management (SHRM) found that 79% of companies already use some form of AI or automation in their recruitment and hiring processes.
IDC predicts that by 2024, 80% of global 2000 organizations will use AI/ML-enabled “managers” to hire, fire and train employees.
A study by the McKinsey Global Institute estimates that up to 800 million jobs could be lost to automation by 2030, but that 970 million new jobs could also be created.
The number of jobs that are at risk of being automated by AI in HRM is difficult to predict, as it will depend on a number of factors, such as the specific tasks that are automated, the level of sophistication of the AI technology and the willingness of businesses to invest in AI. However, it is clear that AI has the potential to displace some HR jobs.
It is important to note that AI is not necessarily a bad thing for HR. In fact, AI can be used to create new jobs and improve the efficiency and effectiveness of HR processes. However, it is important to be aware of the potential challenges associated with AI and to take steps to mitigate them.
How to mitigate the risks associated with AI in HRM
Use AI in a responsible and ethical way.
Be transparent about how AI is used in the decision-making process.
Train HR professionals on how to use AI effectively.
Put safeguards in place to prevent bias and discrimination.
