Key Questions to Ask About the GenAI Revolution in Workforce Management
In this edition, we will delve into the transformative impact of Generative AI and explore five key questions that address its multifaceted applications in the realm of workforce management.
Quote of the Day
“Artificial intelligence is not a substitute for human intelligence; it is a tool to amplify human creativity and ingenuity.”
—Fei-Fei Li
Discovery Learning
When first introduced in 2022, ChatGPT, a form of Generative AI (GenAI), drew a million users in just five days—a groundbreaking technology adoption rate. According to a 2023 McKinsey survey , 60% of organisations with reported AI adoption are using Generative AI. Moreover, among those organisations reporting AI adoption, 40% anticipate increased investments in AI due to GenAI, with 28% already integrating it into their strategic agenda.
Looking ahead, AI adoption is expected to reshape a variety of roles in the workforce. However, executives are facing the challenges of identifying where and how Generative AI fits into existing and future business and operating models, as well as how to prepare for the longer-term disruptions and opportunities resulting from GenAI trends. Let's review the following five questions about GenAI in workforce management.???
1. What are the fascinating aspects of Generative AI that underlie its disruptive potential?
The first appeal of Generative AI is its inherent accessibility, which is not limited by age, education level, or location. Anyone could use the platform, ask a few questions, and receive something useful or enjoyable in return, such as a poem, essay, or other creative output.
Another fascinating aspect is that Generative AI does not require the expertise of a computer scientist. This technology can be applied to a wide range of professions and job roles. OpenAI's research indicates that approximately 80% of jobs can incorporate GenAI capabilities at work. This has far-reaching implications for the labour market and talent pool.?
Generative AI is essentially a tool for stimulating creative problem solving. However, it's important to note that while its results may not always align with conventional wisdom, they consistently offer logical and valuable insights in practical contexts.
2. Will Generative AI reshape or alter the recruiting process in any meaningful way?
GenAI offers three valuable applications in the field of recruitment. First, it helps managers create more effective job requirements by intelligently identifying the essential skills required for success in a specific role. While generative AI significantly improves the speed and precision of this process, human oversight is still required to ensure the quality of the final job requirements.
The second application is candidate personalisation, which is especially useful for organisations dealing with a large number of applicants. Generative AI allows for a much higher level of personalisation when reaching out to candidates, allowing for tailored messages about the candidate, the job role, and even alternative positions if the applicant is not a good fit. These capabilities streamline and expedite candidate interactions considerably.
Besides, Generative AI excels at tagging, specifically in tagging unstructured data with keywords related to capabilities and skills rather than traditional credentials. Imagine a world in which this technology can identify candidates' valuable on-the-job experience, even if they lack formal degrees or certification.
3. What are Generative AI’s implications for professional growth?
Generative AI can facilitate skill-based transitions for both employers and candidates. Individuals can use intelligent chatbots to find career opportunities based on their skills and experiences. This technology can suggest possible career paths, provide clear job descriptions, and recommend relevant learning opportunities. It empowers individuals to navigate their careers proactively and efficiently, even if they want to change jobs later.
Moreover, Generative AI offers a significant advantage in quickly onboarding new employees. Recent research by Erik Brynjolfsson at Stanford and others from MIT shows that it is particularly beneficial for newcomers, allowing them to efficiently access institutional knowledge. This technology significantly increases the productivity of new employees, bringing them closer to full competency in their roles.
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4. What changes have been introduced for the performance review?
Generative AI provides exciting opportunities to improve the efficiency and effectiveness of performance reviews. Consider a scenario where a manager receives feedback from 15 to 20 individuals for a performance review. These feedbacks cover a variety of topics, including long-form comments, numerical scores, and compliance-related metrics. Thanks to GenAI, the draft creation process can be significantly streamlined, freeing up more time for focused discussions about the individual's development and growth.
Beyond the evaluator's perspective, Generative AI can help employees going through performance reviews. Employees can use AI to find successful individuals who share similar characteristics, visualise career progression, and get advice on how to plan their professional development. This transformative support allows employees to drive their own development, set higher goals, and gain insights into how to be more successful. It also aligns with the goal of increasing managers' involvement in performance management by encouraging regular feedback and data collection.
Furthermore, Generative AI provides normative data, which are important benchmarks for individuals to compare their performance to others. These references promote informed and meaningful performance discussions, thereby streamlining the performance management process. In turn, GenAI enables managers to concentrate on their managerial roles rather than administrative tasks, ultimately enhancing the quality of performance conversations and employee development.
5. What are the most important concerns about Generative AI tools, and how should we prepare for the upcoming changes brought about by this technology?
One notable concern with Generative AI is its potential to amplify biases, as well as concerns about intellectual property and the risk of decreased creativity when relying too heavily on AI for productivity.
To address these concerns, organisations can use a variety of strategies. This includes carefully selecting training data to avoid biases, using specialised AI models, and customising models to meet organisational needs.?
Furthermore, it is critical to maintain human oversight throughout the AI process and avoid using GenAI for critical decisions. According to Gartner , decisions made by AI agents without human oversight will cause $100 billion in losses from asset damage by 2030. Regulatory frameworks and the early integration of risk assessment and change management are also vital.
In light of job displacement concerns, facilitating learning and adaptation to GenAI tools is recommended. Leaders play a pivotal role in modernising talent capabilities and ensuring a human presence in decision-making. This transformation presents HR with opportunities to streamline processes and enhance overall HR solutions.
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