Chat GPT - New kid on the HR Block or is it...

Chat GPT…A rumour (For the uninitiated) that turned into a meme-worthy hype that eventually turned into a legitimate potential disruptor to one of this millennium’s greatest tech innovations – Google.

So what is ChatGPT? A Chat Generative Pre-trained Transformer or an intelligent bot that was developed by Open AI (a research lab started by some of the greatest tech entrepreneurs of this century viz. Sam Altman, Reid Hoffman, Elon Musk & Peter Thiel to name a few) to use advanced natural language processing to carry out various functions and responses to any and all questions posed by a user. It uses deep learning techniques to understand and generate human-like text based on the input it receives. ?

The unique nature of the bot comes from its conversational approach and its ability to carry out seemingly complex/tedious tasks on its own across many domains of knowledge. While uneven factual accuracy of the tool is still a concern, a few use cases have emerged as possible real-life applications of the product over future iterations.

One such application is to support the Human Resource function through various use cases. As HR professionals started exploring/experimenting with the tool since December 2022, a few interesting use cases emerged…

1.???Job descriptions…the platform can produce 60-70% accurate Job Descriptors for roles entered thus supporting the talent acquisition function especially for setting up new functions or organizations.

2.???Market Pricing for roles…For certain roles market ranges by years of experience and industry can be extracted with a fair amount of accuracy

3.???Regulatory Support…understanding the nuances of a new employment regulation by asking pointed questions and getting simple interpretive answers.

4.???“How to”s – DIY Design methodologies…”How to design a sales incentive scheme for SAAS organizations?” … Designing an HR process from scratch can be helped by asking the right questions. While this is not greatly accurate, it helps kickstart the design process

5.???Organization design benchmarks…Understand how an organization in a specific industry is structured. With the right set of questions we can estimate organization design constructs with functions and grades.

6.???Skill taxonomies – This has been a revelation to say the least. As organizations focus on upskilling and reskilling their workforces, a strong understanding of skills and proficiencies relevant for specific roles is essential. By asking the right set of questions, one can outline 60-70% accurate skill libraries by roles through ChatGPT. Try this question as a test case…”What skills and proficiencies are essential for a data engineer”

As the product evolves and learns through future iterations and is available for enterprise usage, the HR function can greatly benefit from the use of Chat GPT in several ways.?We believe that very soon, HR professionals may no longer need to write a job description, a policy document, or a HR process manual. Instead, an HR personnel will ask an intelligent bot like Chat GPT, and it will create a document immediately. The HR personnel can then tell the bot to make alternations and closely review the output till it is aligned to the unique context and need of the organization that it is intended for.

?We asked Chat GPT as to how it can help HR…here’s what it had to say…

“Firstly, Chat GPT can automate HR processes such as recruitment, onboarding, and employee engagement. For instance, it can assist in screening resumes, scheduling interviews, and conducting initial candidate assessments. This can help HR professionals save time and focus on more important tasks.

Secondly, Chat GPT can be used as a virtual HR assistant to provide employees with immediate answers to their HR-related queries. It can be integrated with an organization's HR information system (HRIS) to access and provide information on HR policies, benefits, and other employee-related matters. This not only saves HR professionals' time but also improves the overall employee experience.

Thirdly, Chat GPT can be used to perform HR analytics and provide valuable insights into HR processes and employee data. For example, it can analyze employee feedback to identify common pain points and suggest ways to improve HR practices. This can help HR professionals make data-driven decisions and improve the overall HR function.

In conclusion, Chat GPT is a powerful tool that can greatly benefit the HR function. Its ability to automate HR processes, provide immediate HR-related assistance, and perform HR analytics makes it an essential tool for HR professionals. The use of Chat GPT in HR is not only helping to improve HR practices but also enhance the overall employee experience.”

Gimmicks aside, I feel Chat GPT marks a new era of open-source intelligent systems that can augment, personalise and create consumer grade experiences for employees in an organization along with empowering HR administrators with the power of design, benchmarks and market intelligence. ?Humans best understand their organisation, employees, brand, and values. ?This means that for the foreseeable future, a HR professional will continue to provide inputs to such intelligent system and then closely review and align the output.?However, what today takes 2-3 HR personnel maybe handled in the future by one HR personnel supported by an intelligent system like Chat GPT.

These HR professionals will continue to watch this space with a keen eye, giddy with excitement around what the future holds…

?Anurag Malik - Partner - EY | India Region Leader - Workforce Advisory Services | EMEIA Leader - Organization & People Field of Play

Abhishek Sen - Partner - EY I Total Rewards, HR Technology, Learning Leader - India?