Balancing Act: Human-Centric AI in HR Transformation

Reflecting on the delicate balance required to achieve successful HR transformation with AI, acknowledging the importance of human qualities in an increasingly digital landscape through a fictional case study for "Aktone One Ltd" originally titled “An Appraisal of the Opportunities, Challenges, and Implications of Implementing Artificial Intelligence at Aktone One Ltd”.

The research was conducted as part of my Professional Diploma in Artificial Intelligence at UCD.

Lets Set The Scene:

*Disclaimer: Aktone One Ltd and Persona Lizet Group Ltd are fictional companies created for the purpose of this research case study.

Aktone One is a global SaaS leader in omnichannel communications and tech-enabled digital marketing solutions. Their mission is simplifying how brands connect with, engage and delight their customers at a global scale on every channel as well as further assisting them to create custom marketing strategies for each of their clients based on their needs and goals.

Since the recent acquisition of Persona Lizet Group Ltd. in 2021 Aktone One has seen an exponential growth with their revenue doubling year over year.

Following this rapid growth and post Covid 19, in the beginning in 2022, Aktone One initiated several measures to pursue greater efficiency and to realign their business and strategic priorities. As of June 30, 2023, they have substantially completed planned employee layoffs while continuing to develop new and innovative solutions and opening their new European Headquarters office in Dublin. Furthermore, in a recent press release CEO of Aktone One Armand Damond announced that the company will soon be introducing chatbots and AI automation as part of their portfolio of solutions.

Seeing such a fast growth Aktone One has been struggling with finding, onboarding, educating and maintaining talent and are now looking to automate their HR and recruitment processes.?

As an external consultant, being brought onto this project my main task is to advise the CEO of Aktone One on the topic of AI, its recent developments in the sphere of HR, advantages it brings as well as ethical and legal implications. Furthermore, to explain the options available and ways in which Aktone One can approach the automation of their current HR processes as well as tools and solutions they can use to assist recruiters.

Current Landscape: AI in HR & Recruitment

AI recruiting is the process of using artificial intelligence to automate time-consuming, repetitive tasks while offering personalisation and data insights throughout the hiring process.??

As recruiting AI goes more mainstream and the market becomes increasingly competitive? with demand for top talent rising - leaders will need to consider integrating AI-powered recruiting software to thrive in an environment where working faster and smarter is a requisite.?

?Aktone One has already identified this trend and the need to automate the way their current HR department is structured. Therefore, the following is an overview of the opportunities that AI can bring within the HR ecosystem where we will explore how those can benefit Aktone One.

1. The capabilities of the common types of Artificial Intelligence and how they can be used to drive greater organisational efficiency and effectiveness in Aktone One’s HR teams.

AI has achieved remarkable progress in the realm of HR, introducing capabilities that substantially elevate organisational efficiency and effectiveness. Within HR, three prevalent types of AI play a pivotal role in enhancing these aspects:

1. Robotic Process Automation (RPA)RPA involves using "bots" to automate repetitive, rule-based tasks like data entry, document processing, and data extraction. In a tech company's HR department, RPA can be applied to streamline onboarding and offboarding processes, automate data entry and verification for employee information, and simplify payroll and benefits administration by automating calculations, deductions, and enrollment. The impact of RPA is substantial, significantly increasing HR efficiency by relieving HR professionals of time-consuming tasks, enabling them to concentrate on strategic activities and enhancing their engagement with employees.?RPA can be integrated with applicant tracking systems (ATS) to follow rejected candidates who can prove more suitable for future job positions. Bots can also work in synergy with OCR tools to verify digital copies of documents attached to the application letters.?Moreover, a more advanced integration with predictive analytics for human resources management can also come in handy since such software will automatically browse the internet for candidates that suit your organisation. Finally, RPA software can assist in scheduling job interviews and drafting custom messages for applicants using pre-written forms.
2. Cognitive InsightCognitive Insight, powered by AI, analyses extensive data to uncover valuable insights by identifying patterns and trends not easily discerned through traditional methods. In a tech company's HR department, it optimises talent acquisition by analysing historical data to pinpoint effective recruitment channels and ideal candidate attributes. It also enhances employee performance by predicting contributing factors and providing data-driven improvement recommendations. Moreover, it bolsters employee retention by identifying turnover factors and proposing retention strategies. Overall, cognitive insight empowers HR with data-driven decision-making, refining hiring procedures, and improving talent management and employee development strategies for better hiring outcomes and a more productive workforce.An example of this can be Cognitive ability tests, common across many companies, they’re used to screen for training or evaluate employee performance. They’re also regularly used to screen new hires. These tests can save time and resources by filtering for candidates with the requisite cognitive abilities to perform the function of a specific position. When cognitive tests work well, they can lead to increased performance and better long-term employee placement.It is important to keep in mind, while it is well known that cognitive ability tests are very useful for predicting employee performance, they may repel high-status applicants who may see the process as unfair and insulting. More informal and much less valid methods (like informal interviews) tend to be preferred by applicants.? If decided to use the cognitive ability tests it would benefit organisations to make it clear to applicants why cognitive ability tests are being used (i.e., their high validity) and that the exact same procedure will be used for all applicants
3. Cognitive EngagementCognitive Engagement, driven by AI systems, enables natural language interaction and provides relevant information in the HR department of a tech firm. AI chatbots offer employee self-service, addressing HR queries and improving the candidate experience in recruitment by handling initial screening and FAQs. It also extends to training and development, offering AI-driven virtual assistants for personalised learning support. Cognitive Engagement significantly enhances HR service delivery, providing swift and accurate responses to employee inquiries, boosting satisfaction, and freeing HR professionals from routine tasks.?In summary, RPA, Cognitive Insight, and Cognitive Engagement collectively enhance HR efficiency and effectiveness in a tech company: RPA streamlines tasks, Cognitive Insight aids data-driven decision-making, and Cognitive Engagement elevates employee service.

2. How Aktone One can approach the AI for HR Project

There are 2 distinct ways Aktone One can approach the project of introducing automation of their current HR processes and recruitment teams:

1. Strategic CRM project:Many large companies such as Salesforce or Microsoft are leaders within the CRM cloud providers. They have a vast portfolio of solutions focused on managing different teams within the company, including the platform solution for an HR team precisely. This project is strategic and could be most expensive option as well as would take a significant time to get properly integrated into the current system. It does however, bring the best and most significant results in the long run as the company will be scaling further.
2. Small and precise AI solutions:Another option is exploring various smaller providers focusing precisely on satisfying customer needs with a precise AI solution. This can be cheaper than going with the big providers, however, creates a possibility for the systems and processes being scattered and having no single source of truth. As an example Workable Software is a smaller software-as-a-service solution that provides an applicant tracking system and recruitment software to support and manage the hiring process. ClickUp is a productivity platform and solution for HR professionals looking to automate tedious tasks, engage employees, and bring structure to their multiple workflows. Zoho Recruit is an innovative and scalable AI recruitment tool packing both ATS and candidate relationship management features for your HR team or staffing agency. BambooHR is a Complete HR Platform, focused on simplifying and supporting every step in the employee experience through its intuitive features and flexible integrations, all connected to a single, secure source of data. Greenhouse is also an all-in-one software solution that gives you the tools to make better, fairer and more confident hiring decisions from sourcing to structured interviewing and onboarding.

3. Connecting Aktone One’s vision to automate their current HR department and their processes with the capabilities of Artificial Intelligence

The idea of automating HR processes in a tech company is closely entwined with the multitude of opportunities that AI brings. AI not only aligns perfectly with this vision but also enriches its potential in several profound ways.

Efficiency and Scalability: Automating HR processes through AI-powered tools and solutions significantly enhances efficiency. AI can handle repetitive, time-consuming tasks such as resume screening, initial candidate interviews, and data entry with remarkable speed and accuracy. This not only frees HR professionals from mundane activities but also allows the HR department to scale up its operations seamlessly to support a growing tech workforce.?

For example Entelo is a source-to-hire automation platform, which can help Aktone One hire better candidates in less time through Advanced candidate search, Peer-based and inferred skills, Predictive analytics, Talent pool insights and Outreach optimization and automation.?

Fountain AI is a conversational AI which accelerates the hiring funnel and helps hiring managers to screen and qualify applicants more efficiently. Candidates are guided through their applications with real-time, 24/7 responses that reduce mundane and repetitive questions, while recruiters are given better insights into hiring efficiencies to ensure they’re keeping the right applicants moving through the pipeline.

Data-Driven Decision-Making: AI's ability to process and analyze vast amounts of HR data enables data-driven decision-making. It can provide insights into workforce trends, employee performance, and hiring effectiveness. By harnessing AI, the tech company can make strategic HR decisions based on real-time data, aligning its HR strategies with broader business goals. Aktone One can leverage Quinyx - an all-in-one, AI-powered workforce management suite tailored for the deskless workforce. Demand forecasting, automated scheduling and workforce optimization tools guarantee optimal staff coverage for every shift and take the guesswork out of workforce management. In addition, their strategic planning functionality can help Aktone One make proactive, data-backed decisions to streamline long term strategy.

Candidate Sourcing and Selection: AI-driven recruitment tools can revolutionize the candidate sourcing and selection process. Machine learning algorithms can match candidate profiles to job descriptions, identify top talent, and even predict a candidate's fit within the company culture. This not only accelerates the recruitment process but also improves the quality of hires, a crucial factor in a tech company's success.? Jobsoid is one of teh best solutions in the market that can assist Aktone One with Candidate sourcing and management and Candidate tracking.?

Employee Experience: Enhancing the employee experience is a top priority for tech companies looking to attract and retain top talent. AI-powered solutions, such as chatbots for employee inquiries and self-service portals, offer employees quick access to HR information and support, enhancing their overall experience. This, in turn, contributes to higher job satisfaction and improved employee retention. As an example Leena AI is an AI-enabled conversational platform which can help Aktone One build “exceptional” employee experiences. It can integrate seamlessly into the existing HRIS, and assess the engagement level of your employees throughout their lifecycle through regular conversational surveys and use of generative AI to create personalized action plans based on their feedback.?

Predictive Analytics: AI's predictive analytics capabilities can help the HR department anticipate workforce needs. For instance, AI can forecast turnover rates, enabling proactive talent retention strategies. It can also predict skill gaps and recommend training and development programs to keep the workforce competitive in the rapidly evolving tech landscape. Entelo, mentioned above, also can assist here, as it is based on predictive analytics and natural language processing, it can help from predicting candidates’ next roles and analyzing how well they would align with Aktone One’s organisation to automating and optimizing outreach. Similarly to Firstup and Braze.?

Compliance and Risk Management: In the highly regulated tech industry, compliance and risk management are critical. AI can monitor HR processes for compliance with labor laws, diversity and inclusion initiatives, and other regulatory requirements. It can detect irregularities and provide insights to mitigate potential risks, ensuring that the tech company operates within legal boundaries. As an example CloudApper hrGPT solution streamlines HCM tasks, requests, inquiries, and more so that HR teams can focus on other tasks. By providing workers with easy access to information, policy details, and guidelines, hrGPT can help Aktone One ensure that everyone is on the same page. Moreover, it can be configured to send reminders for important compliance-related deadlines, preventing costly oversights.

4. Understanding the People-Process-Technology balance implications in leveraging Artificial Intelligence in HR departments

Human Resources, staffing, recruitments, onboarding and educating has always been strongly reliant on people and human connection. Therefore, in this aspect like no other a strong balance between people and technology must be taken into consideration.?

In the pre-pandemic era, organisations were cautious about digital transformation, waiting for the "right" moment due to perceived challenges. However, COVID-19 shattered this complacency, emphasising the need to adapt swiftly. And it is now widely known that true organisational agility begins with people.

AI's success requires a profound organisational transformation, as seen in companies like Google, Haier, and Siemens. Competing in the age of AI isn't just about technology; it's about restructuring to leverage technology while valuing uniquely human qualities like creativity and adaptability.

To start a successful digital transformation, prioritise people, break it into manageable steps, and focus on technology as the final component. Talent development (TD) is pivotal; it can refocus on people and their interactions. The pandemic accelerated the use of digital tools, emphasising soft skills. TD can provide training in areas like communication and adapt to virtual work demands. Additionally, TD's role extends to recruitment and onboarding, where assessing qualities like curiosity and agility is crucial for fostering learning and growth within the organisation.

As Aktone One proceeds with automation of their HR department and introduction of new tools, it is essential to keep the people on the top of mind.

Within the HR industry, there is no way as of now for machine to adapt the human-like qualities of a recruiter when taking to a potential candidate, therefore, the best approach for this transition to automation is to enable the current HR teams with the tools and knowledge to make their processes more efficient and less time consuming, outsourcing the repetitive tasks to AI bots and automation flows.

5. Legal and ethical dimensions of incorporating AI technology into the hiring process

AI-driven tools have revolutionised talent identification and assessment in hiring, promising efficiency and cost-effectiveness. However, they also raise questions about accuracy and ethical use.

Candidate privacy is a major concern. AI can indirectly infer personal attributes such as sexual orientation and political beliefs without consent, posing ethical and legal dilemmas.?

Ethical considerations arise regarding hiring decisions based on attributes like speech patterns and social media activity. Access to candidates' personal information through big data brings privacy and discrimination issues to the forefront.

Companies must face the challenge of ensuring that artificial intelligence systems remain fair and devoid of discriminatory practices. The best way to navigate this complexity is to follow the existing legal standards like the Equal Credit Opportunity Act and the Fair Housing Act.?

A crucial distinction can be made between intentional discrimination, known as disparate treatment, and unintentional discrimination, referred to as disparate impact.

Intentional discrimination should be prevented by not exposing AI to inputs indicating protected attributes. Unintentional discrimination, often caused by neutral variables acting as proxies for protected attributes, poses challenges in systemic inequity contexts. Fairness is subjective and varies, complicating AI fairness assessment.?

Overall, organisations must navigate legal, ethical, and privacy challenges when using AI in hiring and promote fairness and public discourse to address these concerns. Companies are urged to take responsibility to avoid perpetuating disparities and discriminating against marginalised groups.

6. Trends that will influence and shape the workforce of the future

The future of HR is here, and it's powered by artificial intelligence. AI has the potential to transform HR departments, revolutionising traditional practices and unlocking your workforce’s full potential.

From streamlining hiring processes to enhancing employee engagement, the benefits of AI in HR are vast and far-reaching.

To harness AI's full potential in talent management, the focus should shift from creating ethical HR systems to developing ethical AI. Although removing bias from AI is challenging, it is considered more feasible than eradicating bias from human decision-making. While many organisations implement unconscious bias training, it often falls short in addressing systemic biases that hinder diversity. AI systems tend to reflect human behaviours and biases, offering the potential to enhance fairness and accuracy in hiring choices.

To mitigate bias and promote ethical AI in talent management, organisations should educate candidates about AI usage, invest in AI systems that prioritise fairness and accuracy, and consider open-source systems and third-party audits to ensure accountability.?

Furthermore, ethical compliance in data collection and usage practices should align with conventional hiring standards. Ethical AI is viewed as a means to reduce bias, foster meritocracy, broaden candidate pools, and create opportunities for individuals from diverse backgrounds.?

Nevertheless, human expertise remains vital in leveraging AI's advantages while minimising risks, emphasising the collaborative role of artificial and human intelligence in shaping ethical talent management practices.

In summary, the business vision of automating HR processes in a tech company aligns seamlessly with the opportunities presented by AI. AI enhances efficiency, data-driven decision-making, candidate selection, employee experience, predictive analytics, compliance, and cost optimisation within the HR department. By embracing AI, tech companies can not only streamline HR operations but also gain a competitive edge in attracting, retaining, and developing top talent, which is vital for success in the dynamic tech industry.

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