Revolutionizing HR: Navigating the Future with Generative AI.

For many of you with a significant other / spouse in your lives, do you usually have a situation where your partner completes your sentences for you? Now imagine, technology doing the same for you.

Generative AI is like having your own online Personal Assistant, who not only fills in the blanks of what solutions you seek, but also provides you the best set of solutions- whether you’re drafting a response, summarizing information, or even creating a programming code. A PA that can analyze data, generate customized solutions, plans and reviews, or even whip up a profound anniversary poem for your life partner. All of this without you needing any basic degree in Computer Science!

Generative AI is such a lot of fun, isn't it?

With the introduction of ChatGPT, there has been a tremendous boost for Generative AI in personal & professional lives. While there'll always be debate on the ethics and questions on the intended fair usage of AI technology, we are well assured that it is here to stay.

Unlike other AI technologies that primarily analyze or interpret existing data such as Machine Learning and Natural Language Processing, Generative AI specializes in customized content and solutions, doing tasks in a way that fits each person better, and planning for the future by simulating different situations, helping manage people at work more effectively.

Like all business functions, Human Resources has been a great beneficiary of technology and AI. We are still in the nascent stages of AI in HR, especially Generative AI and most certainly, the horizon can only widen.

So, for someone in Human Resources, what are the areas in which there is a scope for implementing Generative AI? Let us delve into each of the various HR functions to explore such possibilities:

1. Talent Acquisition and Recruitment: With Generative AI at our disposal, we could find better ways to write job descriptions based on relevant organizational processes and requirements and post them to truly attract the right person for the right job. We could also have enhanced tools which would replace the highly controversial Applicant Tracking System (ATS), leading to better opportunities for the right candidate as well as relevant candidates for the employer. This new technology can ensure that a higher percentage of personnel are hired for their competencies, not just qualifications or credentials.
2. Onboarding: Every new employee loves to feel welcomed in the organization, even before they physically join the organization. With Generative AI, there is a great scope for personalizing this experience based on the profile of the new joiner- be it Demographic, Psychographic or a Professional profile.
3. Workforce Planning & Analytics: By providing advanced insights, predictive capabilities, and bespoke strategies to manage and optimize the workforce effectively, Generative AI can play an important role in enhancing the Workforce Planning process in an organization. This can also help an organization achieve their Diversity & Inclusion objectives.
4. Succession Planning & Talent Pipeline: Incorporating Generative AI into Succession Planning would allow organizations to take a proactive, strategic approach to developing their next generation of leaders who are diverse, well-trained, and aligned with the organization's goals and values. With better Skills & Competencies Gap Analysis and alignment with a robust Learning & Development plan, we could develop a system to lower the risks associated with Succession Planning & Talent Pipeline Management with contingency plans and alternatives.
5. Learning & Development: Customized Training & Development Plans for employees based on competencies and qualifications. Enhanced accurate and unbiased assessment of an employee's Strengths and Weaknesses, growth areas and areas of improvement. We could have tailor-made programs which could benefit the company in terms of costs and resources in the longer term.
6. Performance Management System: By using Generative AI for insightful evaluations based on real-time performance data, managers would get a different perspective on an employee's performance whereas employees would receive constructive feedback to drive their growth & potential.
7. Employee Engagement Surveys: Generative AI tools can be used to analyze employee feedback, surveys, and sentiment data to gauge satisfaction and identify potential issues. Sentiment data is essentially the information that helps a system understand how people feel about a particular topic, product, or service based on their written words.
8. Compensation, Rewards and Benefits: With HR managing the salary structures, bonuses, incentives, and benefits packages, Generative AI can help in developing customized Compensation Packages, optimize benefits, accurate forecasting & budgeting and analyse various scenarios.
9. Employee Relations: I am of the personal opinion that Employee Relations should be handled by involving real people, and not have an inanimate bot deal with employees to resolve their issues. That being said, Generative AI can complement the human interaction by handling routine inquiries & administrative tasks, provide predictions and analysis based on certain group dynamics, organizational behaviour and engaged inputs from employees. The potential for Conflict Management needs to be explored, as AI can lend a wholly unbiased viewpoint to certain complex situations.
10. Employee Wellness & Safety measures: Imagine a system which takes into account all the existing work hazards & risks and compares them with existing triggers, leading to a better understanding of employee health and safety risks, using predictive analysis. I believe that such an early intervention can lead to better employee engagement & output and reduced organizational stress on financials and non-financial elements.

Ethical Considerations and Challenges in Generative AI.

As we pilot ourselves, charting the course for revolutionizing digital transformation in the use of AI in the field of Human Resources, we should navigate this new frontier with an eye on certain risks and limitations that this technology brings to us, and address them with the best of intentions.

"In no other field is the ethical compass more relevant than in artificial intelligence. These general-purpose technologies are re-shaping the way we work, interact, and live. The world is set to change at a pace not seen since the deployment of the printing press six centuries ago. AI technology brings major benefits in many areas, but without the ethical guardrails, it risks reproducing real world biases and discrimination, fueling divisions and threatening fundamental human rights and freedoms." - Gabriela Ramos, Assistant Director-General for Social and Human Sciences of UNESCO.

Retaining the Human Touch:

While we implement Generative AI tools into everyday HR, it must also be recognized that the "Human touch" of HR should not be discounted.

Consider the perspective of Bryan Hancock, a Talent Leader at McKinsey. In the context of a McKinsey evaluator's role, where reviewing extensive written feedback and scores from 15 to 20 individuals was a time-consuming task, the idea of using Generative AI to automatically generate a preliminary draft was indeed appealing. This approach wouldn't replace the need for a detailed review but would streamline the initial analysis, allowing the evaluator to focus more quickly on critical aspects for an individual's development and growth. While some may initially hesitate to introduce AI into performance evaluations, viewing it as a productivity tool reveals its potential to enhance the evaluation process significantly. [Source: McKinsey Talks Talent]

Data Privacy:

Incorporating Generative AI into HR requires stringent data privacy measures due to the significant privacy risks associated with employee data collection and analysis. Organizations are required to comply with international data protection regulations such as Personal Data Privacy Protection (Qatar), GDPR (EU), CCPA (USA), Personal Information Protection and Electronic Documents Act (Canada) and Digital Personal Data Protection Bill (India). Transparently sharing how employee and organizational data is handled and using AI systems that anonymize personal information are essential steps to safeguard employee privacy while harnessing AI's benefits. [Reference: Countries with International Privacy Laws for Data Protection]

Amplifying existing biases:

While Generative AI can automate and enhance various HR tasks, it learns from the existing / historical data. If this data already contains biases related to gender, race, age, or other factors, the AI can inadvertently replicate these biases in its outputs.

For example, in recruitment, it might favor resumes from a specific demographic over other groups, not because of merit but due to underlying biases in the existing data.

Similarly, if there is a historical data on staff performance which is heavily unbalanced, and perhaps going against certain working groups, employee class, grades, regions, etc. which is not addressed, then the system may continue to perpetuate these biases in its evaluations.

All of this highlights the need for careful oversight, regular audits, and the use of de-biased* datasets to train AI models to ensure fair and equitable HR practices.

• De-biased: This term acknowledges that the training data used for AI models, especially in HR applications like recruitment or performance evaluations, might initially contain biases due to historical decisions, societal inequalities, or skewed data representation. "De-biased" implies that active measures have been taken to identify and reduce these biases, making the AI's decisions fairer and more equitable.
• Unbiased: This is an ideal state where an AI system makes decisions completely free from bias, i.e. it doesn't favor or discriminate against any group based on gender, race, age, or other irrelevant factors.

Ethical use of AI:

Using Generative AI in Human Resources ethically is really important to make sure everyone is treated fairly and just. When we use Generative AI for activities like hiring or reviewing how people work, we need to make sure it doesn't unfairly favor or discriminate against anyone. This means having an audit process in place, checking the AI technology's decisions regularly to check if there is an instance of any unfairness and making sure the teams working on the AI technology are oriented with the compliances and requirements. If we keep ethics in mind at the outset, then we can make the most out of this technology in a way that's fair and keeps everyone's trust.

In conclusion:

As we shall continually improve and enhance the usage of Generative AI in HR, I see a situation wherein completely new functions shall evolve and take birth within the Human Resources function, which could operate at a more strategic level, as the focus of HR can move from routine-based operations to more strategic ones. This would lead to better business results and growth, in a cost-effective and resource-efficient manner.

The journey of integrating Generative AI into HR function is not without its challenges, but the possibilities are endless. It can be worthwhile for certifying bodies which administer HR qualifications like PHRi, SPHR, CIPD, CHRP etc. to include AI as part of the curriculum and encourage ongoing professional development in this area. By equipping HR professionals with the knowledge and skills to ethically implement and manage AI technologies, we can ensure that the future of work is not only more efficient and productive but also fair and inclusive.

Today, as we navigate into the future of HR with Generative AI, the question will no longer be if Generative AI will redefine HR, but how swiftly and effectively we can embrace its transformative power to evolve organizations that thrive on creativity, innovation, inclusivity, and human-centric values in a cost-effective, sustainable and safe manner.

Key Generative AI Statistics

[Source: MSPowerUser]

• The generative AI market is estimated to reach $1.3 trillion by 2032.
• Approximately 61.5% of companies with 11-1000 employees are using generative AI in the workplace. 46.1% of those that have implemented it use it more than once a week. Just under 33% use it every day.
• 12% of US adults have used ChatGPT to generate text.
• 30% of outbound marketing messages from large organizations will be AI-generated.
• Generative AI will reduce workload by 60% to 70%.

What are your thoughts, Dear Reader? I'd love to hear your perspectives on this.

(Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily represent the official stance of any organization or employer, whether past or present. This content is provided for informational purposes only and should not be interpreted as professional advice. The discussions surrounding Generative AI in Human Resources are based on the current state of technology and industry insights, but it's important to acknowledge that the AI landscape is continually changing. Therefore, the impacts, ethical considerations, and practical application strategies for AI in HR might evolve. Readers are advised to undertake their own due diligence and seek professional consultation before implementing AI technology within their operations or organizations.)