Today, the pressure for efficiency is greater than ever. HR managers are being asked to do more with less while helping their executive leaders not only navigate a talent shortage but adopt and drive innovation like AI-powered solutions, limiting risks and ensuring compliance.
This constant change is taking a toll: HRD Asia reports three in four HR professionals in Singapore experience burnout monthly. Technology adds to their stress, leading to ‘bytemares’ – nightmares about keeping pace with tech evolution.
Yet, properly adopting AI-powered solutions can be transformative, offering HR professionals the tools they need to be efficient. Already, artificial intelligence (AI) adoption is surging, as underscored by a recent survey revealing that nearly three in four HR professionals worldwide use it weekly, saying it boosts their productivity.
Additionally, Gartner asserts that HR leaders have indicated AI is a key part of their strategy, as is generative AI (GenAI) implementation, which they intend to increase by twofold in the year ahead.
However, at the same time, Gartner warns that HR leaders should carefully evaluate their use cases first to ensure leaders capitalise on the benefits and minimise risks of adopting AI and GenAI. HR leaders need to ask the questions: outside of productivity, what else can AI do for me?
What is AI and how can it be applied in HR?
According to IBM, AI can “usher in a new era of human resource management, where data analytics, machine learning and automation can work together to save people time and support higher-quality outcomes.” In its IBM Institute for Business Value (IBV), 40 per cent of executives say they will need to reskill their workforce due to the implementation of AI and automation over the next three years, and 87 per cent say that this shift to use tools such as GenAI could lead to an augmentation of current job roles not necessarily eliminate them.
Additionally, Deloitte reports that AI allows HR professionals to automate repetitive and time-consuming tasks, freeing up their time to focus on more strategic initiatives. Further, a key benefit of AI is that it can unlock data-driven decision-making, allowing HR leaders to deliver better outcomes for not only themselves but the organisation and their workforce.
The top 5 most beneficial use cases for AI in HR
1. Candidate sourcing and hiring
The hiring process is challenging and can be quite slow (a common complaint), but AI can ensure managers only choose the most qualified candidates to interview. HR teams can also leverage AI alerts to automatically receive notifications when a candidate applies for an open position.
2. Onboarding
AI simplifies and personalises information collection, with chatbots helping new employees through onboarding by answering questions, sharing details, and sending reminders, which streamlines tasks and improves the hiring experience.
3. Professional learning and development
AI can support HR teams in career development by recommending personalised training modules for career mobility. By scrutinising employee data, like skills and preferences, AI could tailor their training according to personal goals and help HR managers to identifying hidden talents.
4. Automating HR service
Meeting employee needs is key, and AI can help to effectively enhance both engagement and productivity. AI-powered chatbots offer support with instant answers, personalised assistance, and innovative self-service options, which save time, and empower employees.
5. Procurement of short-term workers
AI has the potential to boost HR efficiency by automating time-consuming procurement tasks, like gathering requirements and managing vendor systems. HR teams can now speed up the hiring process for both temporary and permanent roles.
AI is here to say and continues to evolve with the introduction of agentic AI. But it is important that HR leaders understand that with the benefits also come challenges.
AI risks and challenges – legal implications, AI-hiring bias, candidates misuse and more
With the good comes the bad when implementing AI in HR, requiring organisations to address key AI challenges, such as potential bias leading to discrimination, employee privacy violations, data breaches, and legal non-compliance. In terms of regulatory implications, the rise and introduction of AI has resulted in new data protection laws, requiring organisations to abide by new strict guidelines and ensuring they have a robust framework around how personal data is collected, stored, and used.
In terms of HR functions, the bias found in AI and algorithms remains a significant challenge, requiring the HR team’s diligence to look for any irregularities when hiring (like receiving only male applicants). The high-profile case of Amazon scrapping its AI recruiting tool for systematically discriminating against women candidates is a real-world example of what can go wrong.
Bias in HR systems remains prevalent, asserts AI researcher Nathalie Salles-Olivier, noting her investigation uncovered that 61 per cent of performance feedback “reflects the evaluator more than the employee.” This highlights that HR professionals must remain vigilant regarding AI bias.
On the risk related to sourcing candidates, AI is causing a surge in applications, which is swamping HR teams. According to research from a Workday Global Workforce Report, new applications are submitted at a rate four times faster than job openings, leaving HR professionals overburdened and unable to distinguish the best applicant from the mountain of AI-generated cover letters and resumes they receive.
It is clear that AI can be a powerful tool in supporting prospective applicants, but it also can empower individuals to weaponise AI to their advantage.
Lying on a resume by including fake skills or training is a significant concern. A Resume Builder survey uncovered that 35 per cent of applicants have lied in the hiring process, and 75 per cent said they have secured a job using an application that distorted their background, skills or other attributes. HR professionals must be aware of these recruiting pitfalls, requiring not only a sharp eye, relevant skills and thorough background checks executed either internally or by trusted vendors.
HR leaders and their teams must address these challenges while driving AI integration throughout their department, unlocking the ability to fast-track and screen candidates properly, automating aspects of the hiring process, and reducing errors, all of which are necessary in today’s modern environment.
What’s next – how AI is transforming HR forever
AI can offer HR teams solutions to transform their day-to-day with unmatched speed and efficiency, supporting them in quickly scanning potential employee applications and spotting application irregularities. Yet, staying “human” in the age of robots will be critical for businesses and HR leaders moving forward.
What does staying “human” look like while leveraging AI? Successful HR leaders will balance human reasoning with AI capabilities for maximum impact to solve problems creatively and efficiently, but AI cannot reason like HR professionals can. Not yet anyway, but it is the human’s job to leverage innovation and balance it with business objectives, ethics, and compliance.
The hiring landscape has shifted considerably, requiring HR leaders to act and invest in AI-powered tools to streamline recruitment processes and to ensure they hire qualified candidates. But the benefits of AI in HR need to be balanced with the risks and managed accordingly.
To learn more about how RMI guides clients on relevant legislation and best practices with our unique and comprehensive HR approach, visit our website or read: The Ultimate Guide to HR Strategies: The Key to Building a Strong Workforce.
