Artificial intelligence for HR: What is it and how will it change?

Research from Goldman Sachs predicts that artificial intelligence could replace the equivalent of more than 300 million jobs. Generative AI systems such as ChatGPT are now so advanced that they can create content “indistinguishable” from humans, write documents and fulfil repetitive administrative tasks, but this heralds a huge change for how workforces are managed.

What is artificial intelligence for HR?

Artificial intelligence refers to a suite of computer algorithms that can replicate human intelligence processes. In many organisations, its use so far has been restricted to tools such as chat bots, where it can answer simple questions in recruitment processes, or making suggestions to employees if they’re searching for learning content or a key document in their email.

Recent developments in generative AI, however, mean these systems have evolved to the point where they can simulate more complex human tasks such as writing policies, drawing realistic images or answering difficult questions.

What is generative AI?

Generative AI uses machine learning to process a huge amount of textual and visual data from the internet and other sources. One of the most popular generative AI tools is ChatGPT, produced by OpenAI. A host of alternatives have emerged in recent months, often focused on specific tasks such as writing, coding or translation. Users of ChatGPT can put a request into the engine such as “please write a parental leave policy” and it will generate a document in seconds for a task that could take humans hours or days.

Is artificial intelligence for HR reliable?

Experts argue that while AI HR tools can speed up the generation of policies or documents for volume tasks such as recruitment or a change in terms and conditions, it is still vital to have human oversight.

Maria Kutar, information systems expert at Salford Business School, has argued that HR teams will need to build new skills to manage the use of ChatGPT-style programmes. “Human ethics will still need to be applied to ensure policies serve their purpose and meet business needs, while having integrity and fairness,” she says. “This is particularly important for HR policies and ensuring they don’t discriminate, hold any bias and protect employees, particularly those from underrepresented groups.”

That said, HR teams could use generative AI to check their policies against UK employment law, according to employment law specialist Joanne Gill from Wirehouse Employer Services. While it won’t advise on whether this content is legally binding, it could make suggestions for things to include that were missed in drafting.

One area where generative AI could be particularly useful is in recruitment, where there are numerous administrative tasks that can be simplified and accelerated. Many HR departments already use basic AI to scan CVs or applications for keywords, but this could evolve into more sophisticated analysis of language in video interviews, for example, or making suggestions to recruiters.

What will AI mean for workforce planning?

Goldman Sachs research suggests that as much as 63% of the US workforce could have some aspects of their role automated, and a similar proportion in Europe will be affected. Hands-on roles in areas such as construction will be the least affected.

For HR teams in sectors such as law, a high proportion of tasks could be automated, meaning the function will need to recalibrate its recruitment and retention strategies. Job losses are already occurring in some sectors – UK publisher Reach has recently trialled the use of AI to produce articles for local news sites, and the company announced 200 redundancies at the start of this year.

On the one hand, AI can support HR to optimise the workforce through tasks such as scheduling or working out who has the most relevant skills for a project, according to consulting group McKinsey. On the other hand, it will require HR and learning teams to rethink the skills needed in a hybrid workforce where humans and ‘machines’ interact.

HR analyst Josh Bersin believes HR will need to adapt rapidly to a changing skills landscape, reassessing skills models and redesigning jobs so the human aspect of roles is put to best use.

What will AI mean for the HR function itself?

In 2020, Willis Towers Watson published research suggesting that almost a third of HR roles were at risk of being replaced by robots. It found that 24 out of 27 roles would be impacted by AI in some way.

According to a BBC analysis of research by Oxford University and Deloitte from 2015, the most likely roles in HR to be automated are in HR administration, which have a 90% likelihood of automation. HR managers and directors (32% likelihood) and HR and industrial relations officers (24%) are at far less risk of automation.

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