The impact of AI on Human Resources
Main challenges in HR
For many years, one of the challenges of Human Resource managers has been to be able to collect and convert the information gathered from their employees into useful information for decision making, as well as to effectively measure the return on investment in human talent.
"91% of organizations currently use basic data analysis tools such as excel spreadsheets, data visualization tools, among others. While only 6% use cognitive tools for support in decision making within the HR department." Deloitte Study
The Vice President of Talent at Deloitte Consulting in San Francisco, Kathi Enderes, stated that in order to generate a high return on investment in technology, the data that is entered into the systems must be accurate and updated. The team that analyzes this data needs to have a variety of experiences in analytics. Moreover, those in charge of decision making based on that data need to have real time access to these insights”.
According to the report published by HRPA entitled "What does Artificial Intelligence mean for HR Professionals?" Human Resources professionals clearly aim to incorporate new technologies into their work in the coming years. However they consider that they still do not fully understand the capabilities or advantages that will help them take advantage of the benefits of these.
How can AI on Human Resources be useful?
Even though it sounds like something from Sci-Fi, Artificial Intelligence is a technology that is dedicated to imitate human intelligence through machines that learn to collect and interpret information so that each time they learn and refine their results to obtain answers and recommend solutions more tailored to the task requested. That is, it allows patterns to be found through all the information collected to predict trends, learn, and help automate tasks that are routine, always with the help of human training and feedback.
Among the main current challenges of companies, AI on Human Resources assists in:
- Helping to reduce and optimize the time that recruiters spend on administrative tasks.
- Making recruiting work more precise, finding candidates whose skill set best matches the position.
- Supporting in onboarding, helping new employees improve their integration experience to the company.
- Improving employee retention. Depending on the focus of the AI tool used, this aspect can be covered through different ways such as:
- Promotion of internal mobility through the evaluation of skills and potential of employees.
- Measurement of levels of well-being and prevention of high levels of staff turnover, through the analysis of employee mental health.
As a fact, a forecast made by McKinsey consultancy regarding the future of Machine Learning states that by 2030, the impact that AI will have on the global economy will be $13 billion USD. And it makes sense, now that we are experiencing a global acceleration greater than expected in terms of technology.
Although Human Resources is a department that is in charge of talent and human capital, facing all the technological advances that we have today, it has become relevant to evaluate the tools that will allow decision-makers to simplify routine work, in addition to leveraging on them throughout the HR process, from candidate selection and onboarding, to retention and productivity, which ultimately allow the HR team to focus on strategic planning and save on operating costs.