A new perspective on search
HR’s Evolution in the AI Era
Author: Foyin Awosika
The integration of Artificial Intelligence (AI) into Human Resources (HR) is not a trend; it’s a transformative shift that is reshaping how organisations manage people, optimise processes, and drive innovation. As businesses seek to enhance efficiency and effectiveness while fostering a more dynamic and engaging workplace, AI and automation are increasingly being implemented into HR strategies. We sat down with 6 HR experts across various industries to gather their insights on how we can expect AI to influence the HR industry today. Read on to hear their thoughts on the benefits and challenges of this integration.
From Administrative to Strategic
AI has transformed the nature of HR work, particularly through the increased automation of routine administrative tasks. However, it would be wrong to think that it is only now, after the emergence of ChatGPT, that we are seeing HR adopt AI. Ben Redshaw, an interim CHRO, explains that we have actually seen the work of “narrow AI” at play for years, where computer systems have been trained to perform cognitive tasks like learning patterns, making predictions and solving problems. This sort of AI is what would have enabled someone to filter their inbox, for example. Though in more recent times, the HR experts we interviewed have observed that we have seen an increasing need for HR professionals to streamline their manual processes and systems to focus more on strategic and creative initiatives rather than being occupied by manual processes.
For example, Donna Lovitt-Edwards, Head of Organisational Development at Informa Connect, mentioned how her organisation has successfully automated the basic transfer of data between systems, saving her team 20 hours per week – equivalent to half a full-time position. Similarly, Steven Bianchi, who has a reputation for helping early-stage founders turn ideas into unicorns via his Organisation Logic and Silent Partner brands, shared how his team successfully implemented an AI-powered chatbot to handle routine employee queries about policies, benefits, and leave requests, including voice-activated triggers through Amazon Alexa.
This innovation reduced their HR team’s administrative workload by approximately 30%. These efficiency gains therefore allowed their teams to redirect their focus towards higher-impact (strategic) activities. These efficiency gains therefore allowed their teams to
redirect their focus towards higher-impact (strategic) activities.
While these AI implementations are impressive, the potential for AI-driven efficiency in HR doesn’t stop there. Some of the experts expressed that in future, we can expect to see AI further automate and enhance performance management processes in a way that would continuously gather and analyse performance data, provide real-time feedback, and suggest personalised development plans. Such a system would not only streamline performance management but also free up managers and HR professionals to concentrate on coaching and strategic workforce planning. This is what will really differentiate a company’s culture for a competitive advantage.
Drawing from their respective experiences implementing AI, the experts offered valuable advice for other HR leaders looking to leverage AI. Bianchi recommends starting small and scaling gradually, focusing initially on automating repetitive, time-consuming tasks. However, Bunmi Alabi, HR Director of Diageo in Southern, West and Central Africa, has a slightly different view, as she advises HR leaders to start small and scale rapidly. While they suggest slightly different approaches, they both emphasise the importance of including good change management practices and training to ensure the team is prepared for the transition. Alabi adds to this perspective by advising that having a clear strategy is crucial, along with ensuring that the culture is right for AI implementation to avoid potential biases, and she recommends taking an experimental approach to technology implementation.
For Redshaw, he emphasises the importance of a good explainability of AI for those interested in adopting AI. He therefore advises HR leaders to start by asking their HCM system vendors 3 critical questions about their AI-enabled offerings:
How does it work? How explainable is the AI offering?
What should we use / not use it for?
How do you test for bias and how is your system compliant with relevant regulations?
This approach, he suggests, helps HR leaders build a solid foundation of understanding and avoid the pitfalls of biased or non-compliant AI.
Furthermore, it is also inevitable that as HR evolves in this AI era, new skills are becoming essential for the HR function. Philip Eames, an interim Senior Talent Acquisition (TA) Director, feels as though HR is moving towards being “increasingly data-driven with additional skills needed to focus on clean, effective and connected data. We should expect to see more HR Operations resource (including data/AI skilled professionals) and HR Business Partners focused primarily on strategic non-admin based activities. The challenge will be to balance the resource investment required to manage HR-AI activities, with the underlying pressure to keep HR function costs (and headcount) as lean as possible.” Bianchi agrees with this perspective as he explains how “HR was [traditionally] more relationship-driven and now it’s more process driven”.
Given this outlook, the experts were all in consensus about the top skills HR professionals would require to remain future-fit: data analytics, data and digital literacy, prompt engineering, data-driven decision making and strategic thinking.
In addition to these skills, Holly Quincey, the Chief Talent Officer of Lloyds Banking Group, highlights that HR will require people who are “resilient to change, can change at pace”, agile, and adaptable.
Upskilling in these skills is therefore crucial for HR professionals especially if we expect the HR sector to flourish in an AI-driven world, rather than being left behind by the technology.
Enhancing Decision Making with AI
The second theme we explored was surrounding AI’s role in enhancing HR decision-making. By providing more accurate and timely data, AI allows HR leaders to make better-informed decisions across various functions, including talent acquisition, performance management, and employee engagement.
Lovitt-Edwards and Bianchi illustrated how their teams use AI to analyse internal and
external data quickly, improving decision-making in talent acquisition and strategy formulation. While Lovitt-Edwards’ talent acquisition and strategy formulation team use an AI-powered tool similar to ChatGPT to analyse both internal and external data promptly which improves decision making, Bianchi’s team uses predictive analytics to identify the most promising candidates during talent acquisition by analysing patterns from past successful hires.
A common concern is that AI will replace the need for human judgment and the HR industry altogether, but the experts clarified that this is simply a misconception. AI should support rather than replace human decisions.
“AI can’t do what humans do”.
Donna Lovitt-Edwards
The experts stressed the importance of balancing AI-driven data insights with human judgment to ensure decisions are both data-driven and contextually appropriate. While AI shortens the process by doing initial analysis, the final judgments, especially for high-impact decisions, should remain with humans.
“when it comes to people, context is king.”
Bunmi Alabi
So, we can’t rely on AI to do the high-impact decision makings.
This is especially important because, like humans, technology also has its flaws. AI is not always perfect, which means that there are times where you cannot wholly trust its outputs. ‘So how am I expected to trust AI-generated data?’, you might be wondering. Well, the HR experts recommend ensuring the data source is reliable, and always validating the outputs. If your data architecture is fragmented, your AI results will definitely be unreliable.
Driving Innovation in Talent Development and Employee Experience
AI’s ability to personalise learning paths is one of its most impactful contributions to talent development. Organisations can use AI to analyse employee skills, career aspirations, and learning styles to recommend tailored learning content and experiences. This approach ensures that employees receive the most relevant training, enhancing their skills in areas critical to both their personal growth and the organisation’s strategic goals.
AI is also transforming how organisations approach employee engagement and retention. Bianchi explained how predictive analytics can be used to identify employees at risk of leaving and AI-powered sentiment analysis to gauge employee mood in real-time. These tools enable proactive interventions, allowing HR to address potential issues before they lead to turnover. Quincey also explains the role that AI plays in mapping out career paths for employees by matching their skills with suitable roles and development opportunities, thus fostering a more engaged and motivated workforce.
One notable example of AI-driven talent development is Bianchi’s “Skills of the Future” program. This initiative uses AI to analyse industry trends, business strategies, and employee data to identify critical skills needed for the future. Employees are then provided with personalised learning paths to develop these skills, significantly improving internal mobility and reducing external hiring costs. This initiative is similar to Quincey’s experience implementing Eightfold – a talent management platform – whilst she was the Global Head of TA at Bayer, which used AI to predict future roles for employees based on their skills, and to recommend relevant development programs to fill any gaps.
Challenges and Ethical Considerations in AI-Driven HR
As AI becomes more integrated into HR processes, it brings with it a host of challenges and ethical considerations that HR leaders must navigate carefully. Alabi explained that one of the most significant ethical concerns is data privacy. HR teams need to ensure that employees are aware of what data is being collected and how it’s being used. Transparency and strict data protection policies are needed to maintain trust between employees and the organisation. Our other experts echoed this point of view, discussing the importance of giving employees control over their data through self-service portals to foster that sense of ownership and transparency.
Addressing biases in AI algorithms was the most commonly identified critical challenge amongst the experts. Biases often stem from the data fed into AI systems, which can perpetuate historical biases if not carefully managed. To mitigate this, the experts recommend transparency and regular bias testing, noting that diversity in the teams that are developing and overseeing AI systems is crucial to catching biases that might otherwise go unnoticed.
Furthermore, Lovitt-Edwards and Bianchi both noticed that some HR teams were apprehensive to adopt new technology in their processes due to fears around job security and ethics. To address this, they upskilled their HR teams through coaching and training to better understand AI’s role in the workplace to augment roles, not replace them. Bianchi also maintained human touchpoints for sensitive issues, gradually introducing AI-assisted processes.
As AI continues to advance, HR leaders must balance the need for innovation with ethical responsibility. For example, to ensure ethical use of AI, Bianchi’s organisation follows guidelines
set by international bodies like the IEEE’s Ethically Aligned Design and the EU’s Ethics Guidelines for Trustworthy AI. All the experts stressed the importance of maintaining human oversight in AI implementations to ensure that ethical considerations, cultural alignment, and the nuances of each situation are factored into final decisions.
Conclusion
Overall, we’ve seen how AI is fundamentally transforming HR by enhancing efficiency, driving innovation, and personalising employee experiences and talent development. However, this shift is not without its challenges; HR leaders must carefully balance AI’s capabilities with ethical considerations such as data privacy and algorithmic biases. The insights shared by our experts emphasise that while AI can streamline processes and improve decision-making, it must be implemented thoughtfully, with a strong focus on transparency, human oversight, and upskilling HR professionals. As AI continues to evolve, its success in HR will depend on how well organisations integrate these technologies while maintaining their core values and fostering a culture of trust and fairness.
