HomeEmployee ExperienceHR StrategyGenerative AI is revolutionising HR practices

Generative AI is revolutionising HR practices

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The generative AI revolution is reshaping the HR landscape. Brightmine’s latest research reveals a surprising gap in awareness among HR departments when it comes to AI adoption.

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The rise of generative AI is bringing significant changes to the workplace, and HR professionals need to be prepared. This transformative technology presents both opportunities and challenges. Let’s explore the latest research from Brightmine (formerly XpertHR), a leading authority on AI in the workplace.

We’ll discuss the urgent need for HR leaders to raise awareness about generative AI among senior executives, examine how this technology can be applied to streamline HR processes, and address the challenges and limitations HR professionals should be aware of.

Why HR leaders need to raise awareness of generative AI

If you haven’t discussed the potential and adoption of AI technologies within your organisation, now is the time for HR leaders to raise awareness among senior leadership. Generative AI is changing the way we work and is here to stay.

Whether your company already has use cases for generative AI or is still exploring its potential, it’s crucial to ensure a high level of understanding about how this technology will impact your operations and business. It’s also important to recognise its limitations. Incorporating AI technologies into your strategic thinking is essential for growth and maintaining a competitive edge.

Worryingly, recent research from Brightmine reveals that more than 65% of HR departments have not discussed the adoption of AI technologies with senior leadership. While this may seem like a technology issue, the significant impact AI has on the workforce, collaboration, and required skills makes it highly relevant to HR leaders and people strategy. HR leaders should collaborate closely with senior executives to develop AI talent strategies and manage role changes.

As Scott Walker, CEO at Brightmine, states, “The lack of awareness among HR employees is alarming but understandable. Generative AI has had a meteoric rise and there are huge amounts of noise surrounding it, but there is still a lot of demystification needed not just among HR professionals but across senior leadership teams.”

Utilising generative AI in HR

Brightmine’s report finds that nearly 70% of surveyed organisations lack an understanding of AI, which is the most common barrier to adoption. To understand and use generative AI effectively, start by identifying use cases that could add value to your department. Generative AI offers numerous benefits that can change HR practices and improve operational efficiency.

According to Scott Walker, “Despite a perceived lack of understanding, HR employees still recognise where AI could benefit their department.” Here are a few ways generative AI can be a valuable addition to your HR team:

  • Talent intelligence: Use generative AI’s advanced algorithms to analyse large datasets and gain valuable insights into talent intelligence. This includes predicting applicant success and assessing employee mobility. AI can analyse CVs, identify key skills, and evaluate candidate suitability, saving time and effort in initial screening. This allows you to focus on strategic decision-making.
  • Performance management: Enhance performance management by providing real-time feedback and identifying areas for operational improvement. AI can make performance analysis and reviews more relevant and fair for individuals. It can also identify bottlenecks and recommend process optimisations, leading to increased productivity.
  • Employee experience: Improve employee experience by streamlining processes such as onboarding, job transitions, and administration. You can focus on creating more effective and personalised experiences for employees once the routine tasks have been automated. AI-driven onboarding processes guide new hires through customised orientation programmes, improving their integration into company culture.

Overcoming challenges and limitations

While generative AI offers many benefits, it also faces challenges and limitations. Reliability varies significantly across different models, and accuracy depends on the quality of datasets. Biases can be introduced if AI systems are trained on biased data, potentially perpetuating discrimination in recruitment processes.

Data security and privacy risks are heightened due to the large volumes of sensitive information processed by AI systems. Brightmine’s research shows that 43% of the HR professionals report ethical and data protection concerns as a common barrier to AI adoption. Additionally, the lack of transparency in AI algorithms can create doubts about the fairness and interpretability of decisions. Addressing these challenges is crucial for the successful implementation of generative AI in HR.

Equipping employees with the right skills

Upskilling and reskilling initiatives play a crucial role in enabling employees to stay ahead of the curve and contribute effectively to their organisation’s success. 

According to the World Economic Forum, by 2025, 50% of employees will require reskilling due to the adoption of new technologies such as generative AI. AI solutions can help HR professionals identify skill gaps and facilitate the development and implementation of targeted training programmes. Generative AI plays a crucial role in business performance analysis by creating learning programmes tailored to specific businesses and teams while offering a personalised learning experience for each learner, ensuring the achievement of learning objectives.

One critical area that demands attention is data literacy and data fluency. As data plays an increasingly pivotal role across industries, having a workforce proficient in interpreting, analysing, and communicating data-driven insights is crucial for informed decision-making and driving innovation. A report by DataCamp found that three of the top five fastest-growing skill sets over the past five years were related to data, including business intelligence, data science, and basic data literacy.

As generative AI continues to evolve, it is essential for employees to receive proper education on its responsible and ethical use. Scott Walker emphasises, “Not only is technology changing the way organisations operate, but technology is also impacting every phase of the employment lifecycle, generating demands for new skills and impacting the way people work.” Equipping your workforce with the necessary skills is critical to ensuring long-term business success.

However, Brightmine’s research highlights that an alarming 80% of organisations have not provided employees with any AI training. As a topic of discussion at the CIPD Festival of Work event, 43% of employees reported wanting and needing training to use generative AI effectively, demonstrating significant interest. Employers should listen and respond to employee demands by prioritising upskilling and reskilling initiatives and empowering their workforce to navigate the complexities of emerging AI technologies.

Conclusion

The integration of generative AI into HR practices is inevitable. As this technology continues to reshape the workplace, HR leaders like you play a pivotal role in ensuring a smooth transition for your organisations.

You will be unlocking a whole new level of efficiency and innovation by giving your teams the tools and knowledge they need to realise generative AI’s potential. The future of work is data-driven and human-centric, and so is the future of HR.

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