AI in HR: The Good, The Bad and The Ugly

AI in HR: The Good, The Bad and The Ugly

AI in HR: The Good, The Bad and The Ugly

Artificial intelligence is no longer a technology of the future; it has permeated virtually every industry —and human resources is no exception. To maintain a competitive edge in talent acquisition and retention during the Fourth Industrial Revolution, leaders must understand both sides of the coin to effectively integrate this new technology into business operations.

The Good: Optimized Efficiency

In the ever-evolving landscape of human resources, technological advancements have ushered in a new era of efficiency, accuracy and improved decision-making. Among these advancements, artificial intelligence (AI) has emerged as a game-changer for HR leaders, offering a myriad of benefits that revolutionize the way employers manage their workforce and drive organizational success.

Streamlining Recruitment

In 2023, it’s a candidate's market, and taking too long to recruit may mean they’re off the market before you even reach them. To compete, HR leaders are utilizing AI-powered applicant tracking systems (ATS) to analyze resumes, extract relevant information and compare it with predefined criteria. Predictive analytics algorithms can then analyze historical hiring data within the ATS, such as candidate qualifications, assessment scores and interview performance, to identify patterns and predictors of successful hires. By automating the low-value admin portions of recruitment and hiring, managers can save up to 1.75 hours a day on manual labor.

Enhanced Employee Onboarding

AI-powered onboarding platforms can automate administrative tasks, such as paperwork and training modules, allowing HR professionals to focus on more strategic aspects of the onboarding process. Intelligent chatbots can provide real-time guidance and answer frequently asked questions, ensuring no candidate is “left hanging” during the process to alleviate employee frustration and turnover. According to Gallup, a poor onboarding experience for a new hire can have significant consequences, leading to disengagement at work and costing businesses an estimated 18%of their salary.

How does your employee onboarding strategy rank? Find out with this scorecard.

Performance Reviews

AI is revolutionizing performance reviews by introducing an objective and data-driven approach that eliminates personal bias and favoritism. By leveraging advanced algorithms, AI systems can analyze vast amounts of employee data, including objective metrics and qualitative feedback, to provide a comprehensive and fair assessment of an individual's performance. This practice is already widely used in HR today through stack ranking: a software that compares employees’ performances against each other and recommends manager intervention or additional training for underperforming individuals.

The Bad: Diversity Crisis

AI systems, while designed to be objective and impartial, are not immune to bias and can jeopardize a firm’s commitment to diversity. As the field of data science draws programmers from a similar demographic, white males with similar educational backgrounds, bias seeps through products like facial recognition and chatbots. Further, when AI models are trained on datasets that reflect historical prejudices or discriminatory practices, the technology can inadvertently learn and perpetuate those biases to foster a homogeneous workforce.

  1. Men make up 80% of all AI professors.
  2. Less than 5% of the staff at Facebook, Google and Microsoft are Black, while Black workers in the U.S. represent roughly 12% of the workforce.*

The Ugly: New Challenges

Artificial intelligence will introduce a fresh set of challenges and regulatory considerations for HR leaders in the modern era. From cyber risk insurance to safeguard against reputational harm and data breaches to ensuring compliance with laws that mandate audits of AI-driven recruitment software, employers will have to find new strategies to uphold ethical standards and protect the interests of their organizations and employees.

Beyond the Algorithm

While AI can augment the search process by streamlining certain tasks and providing data-driven insights, the nuanced nature of executive-level recruiting requires the involvement of experienced professionals who can navigate complexities, leverage field experience and make informed recommendations that go beyond what AI algorithms can offer.

*Source: AI Now Institute

AI in HR: The Good, The Bad and The Uglyhttps://www.cbiz.com/Portals/0/Images/GettyImages-1435226158.jpg?ver=f4waUxDgY7m0S0gHdOW0mg%3d%3dArtificial intelligence is no longer a technology of the future; it has permeated virtually every industry —and human resources is no exception. To maintain a competitive edge in talent acquisition and retention during the Fourth Industrial Revolution, leaders must understand both sides of the coin to effectively integrate this new technology into business operations.2023-07-19T17:00:00-05:00Artificial intelligence is no longer a technology of the future; it has permeated virtually every industry and human resources is no exception. To maintain a competitive edge in talent acquisition and retention during the Fourth Industrial Revolution, leaders must understand both sides of the coin to effectively integrate this new technology into business operations.Employee ManagementCompensation ConsultingTalent Acquisition/RecruitmentYes