AI for HR: What Role Does It Play in Modern Human Resources?

While artificial intelligence (AI) has existed for decades, it has gained popularity in the past few years. Advancements in technology, particularly generative AI tools such as ChatGPT, have taken the world by storm. Artificial intelligence may have started as science fiction, but it’s shaping reality now. A recent report from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in 2023 revealed that 68% of Australian businesses had already begun implementing AI technologies, with a further 23% planning to do so within 12 months. 

While artificial intelligence is already commonly being used in roles such as marketing, its potential in sectors like human resources is often overlooked. Artificial intelligence can be used for administrative tasks, pre-screening resumes, and more. Whether you’re already working in human resources or planning to study for an HR graduate certification, being AI literate is critical for future success. 

What is AI literacy?

Literacy was once popularly understood as a person’s ability to read and write. In today’s technology-driven society, people must also be ‘digitally literate’, which refers to their ability to efficiently use computer systems and related tools. Now, with the rise of artificial intelligence, being ‘literate’ is also extending to AI literacy. People will need to have a basic understanding and competencies of artificial intelligence tools as they become more common in the workplace.

For an individual to have AI literacy, they would need to understand the role of artificial intelligence tools, how they work, and apply them correctly. The user would also need to be able to critically evaluate the tools and be aware of any ethics-related issues. 

Why is it important?

AI literacy is important for various reasons. First of all, it’s beneficial for the user applying the tools, the organisation that hired the user, and also the consumer/clients. Below, we’ve outlined why being AI literate is essential.

• Having an understanding of the potential ethical issues related to artificial intelligence can lead to safer and secure use.
  
  
• Being competent with AI tools can give you a huge step up in the professional world, as more businesses are beginning to implement artificial intelligence technology.
  
  
• Countries around the world are beginning to implement legislation regarding the use of artificial intelligence. For example, Australia is planning mandatory guardrails, particularly in high-risk environments. Being AI literate can help us better understand and follow these rules.
  
  
• Proficiency with artificial intelligence tools can help you reduce your workload. Already, AI can help with a range of administrative tasks, including in human resources.

According to a survey conducted by The Access Group, artificial intelligence is already reducing workloads and increasing productivity. 78% of the surveyed group indicated that the use of generative AI tools had alleviated their job/workload stress.

Additionally, the survey also found that technology and human resources were the top two sectors for adopting AI technologies.

How AI can be used in human resources

Artificial intelligence is transforming the human resources field. The technology is helping the sector create more informed, data-driven decisions, streamline processes, and increase overall efficiency.

As human resource departments begin to incorporate more AI technology, learning more about the tools is critical. Below is a list outlining the different ways the technology can be utilised in HR.

Streamlining hiring processes

Artificial intelligence has revolutionised and streamlined the recruiting process for companies. The technology makes hiring more proficient, as AI tools can pre-screen resumes and filter through candidates.

Statistics show that the use of artificial intelligence in hiring has skyrocketed over the years. According to a report from LinkedIn in 2023, 67% of hiring managers use AI tools in their recruitment processes.

According to the same report, artificial intelligence has reduced time-to-hire by 30% and streamlined related administrative processes. This has also allowed HR professionals to focus more on other tasks and strategic decisions.

Handle administrative tasks

Artificial intelligence tools can help alleviate the administrative workload for human resource professionals. For example, AI can be used to create automated onboarding for new employees. 

Artificial intelligence can also be used to assist with time-consuming, repetitive tasks such as data entry and basic reporting. Generative AI tools can also be used to help write reports, emails, and check for errors. 

Modern HR platforms are now combining automation, analytics, and AI to centralize tasks like onboarding, payroll, and performance management. Platforms like Zelt HR help teams simplify workflows while giving employees a more modern, self-service experience.

Improving employee experience

A few organisations have begun implementing artificial intelligence chatbots to help improve their overall employee experience. These bots can reply to any frequently asked questions, improving the time of response for the workers, and allowing the HR professionals to have more hands-on time with more unique or complex situations requiring their expertise.

Analyse trends

Like with other industries and sectors, artificial intelligence is becoming an invaluable tool for analysing data sets and discovering trends in HR. It can also perform these analyses quicker than a human, at a fraction of the cost. 

Current challenges for AI

While artificial intelligence is rapidly changing the way we interact with others and work, it still isn’t perfect. The technology has a few challenges it needs to overcome, which AI literacy can help with. These include:

• Reducing bias: Despite common belief, it is possible for artificial intelligence to provide biased information. This is because the data it learns from might already have existing societal biases, causing the artificial intelligence to perpetuate them. This is still a massive challenge for AI, and will be hard to eliminate without regulation and taking steps for mitigation.
  

• Privacy and personal data collection: Another massive challenge and concern with AI tools is privacy. There have already been many AI tools that are unlawfully collecting personal data and using the data to learn from. While governments around the world are trying to combat this, it is also on the organisations to implement AI tools ethically.

Artificial intelligence is still a relatively new technology. Despite its widespread adoption, there are going to be growing pains. When planning to use AI tools for business tasks, it’s important to consider the above-mentioned factors to minimise the risk to all parties and ensure ethical use.

The future of artificial intelligence

Statistics from McKinsey show that artificial intelligence is only going to keep expanding. Organisations are beginning to make organisational changes designed around the future of generative artificial intelligence tools.

In the latest McKinsey Global Survey, more than three-quarters of respondents report they use AI in at least one business function. The technology is becoming more common in everyday life, too, as manufacturers integrate AI features into our personal devices, such as smartphones. 

Even if you don’t work in human resources, staying up-to-date with the latest artificial intelligence technology and developments is now a necessity. It can be a valuable assistive tool in your personal life and give you an edge in your career.