August 2024


When we were first introduced to ChatGPT in November 2022, we were blown away by its ability to deliver instant, insightful responses. However, it’s practical applications in the workplace weren’t immediately clear. Fast forward to today, and the AI landscape has expanded significantly with specialised tools, such as Microsoft’s Copilot, which are specifically designed to improve and facilitate efficiency in professional environments. Aside from multiple potential uses of AI within businesses, we have identified some of the key areas where AI can be used by HR teams to accelerate processes and enhance efficiency.


Recruitment


  • Recruitment has always been a resource-intensive process, requiring significant time and effort from HR professionals. AI is now transforming this area by automating many of the routine tasks involved, allowing HR teams to focus on more strategic activities.


  • For example, AI is increasingly being used in recruitment to draft job descriptions that reflect industry standards, company culture, and specific role requirements. It can also generate interview questions tailored to the necessary skills and experiences, prepare automated email responses and schedule interviews.


  • Despite these efficiencies, there are legal implications to consider, particularly concerning discrimination. Some AI tools claim to filter job applications by analysing resumes and shortlisting candidates based on predefined criteria. Others use chatbots to ask questions of prospective candidates to identify and filter out those who don’t meet the required standards. Whilst this can save time, it also raises the risk of unintentional bias and discrimination. AI systems are only as good as the data they are trained on, and if that data reflects biases, the AI may inadvertently perpetuate them. This presents a significant legal risk, as companies could face discrimination claims if the AI filters out certain groups of candidates based on gender, race, age, or other protected characteristics. Therefore, it's crucial for companies to regularly audit their AI tools to ensure compliance with anti-discrimination laws and to maintain transparency in their recruitment processes.


Resolving employee issues


  • AI is increasingly valuable in resolving employee issues, for example by supporting HR throughout the process and managing grievances and disciplinaries to ensure these procedures are carried out fairly.


  • For example, AI can summarise grievance details into clear bullet points, simplifying complex cases for HR professionals. It also aids in scheduling related meetings, coordinating with all parties for timely arrangements.


  • However, the AI is not infallible and, it could miss or confuse details in a document when it is being summarised, or even hallucinate new complaints or issues. Moreover, in the context of grievances and disciplinaries, AI can lack an understanding of the nuances of complex human issues or even your business, potentially resulting in responses or suggestions that do not address the underlying issues raised, or even worse, which are plainly incorrect.


  • Therefore, although AI can aid the process, it’s important to ensure that mechanisms are in place to check the accuracy, ensure human oversight and not to overlook practical or legal considerations when resolving employee issues to ensure these processes are carried out fairly.


Improving engagement and retention


  • AI can improve employee engagement and retention by creating surveys and analysing feedback to gauge satisfaction and identify trends, helping HR teams to understand employee perceptions of the work environment and leadership. AI can also be used to enable personalised engagement strategies by tailoring recommendations based on individual data, such as career development and work-life balance preferences.


  • It is always worth keeping in mind that over-reliance on AI insights may lead to overlooking the nuanced understanding that human interaction provides, potentially missing key aspects of employee experience.


Of course, underlying all of this are the data protection concerns that should be considered before using AI, for example with regards to notice, data privacy risk assessments, data transfer and sharing with third parties. To mitigate against this, companies should ensure they have transparent practices and robust security measures in place before using AI.


Where businesses are implementing AI tools they are well advised to be mindful of upcoming legislation that may impact their use and to consider any compliance that may be required. For example, the EU AI Act (which may impact companies even if they are not based in the EU) has entered into force and the provisions will start to take effect in the coming months. Read more about the EU AI Act here.


Overall, AI is no longer just a futuristic concept; it's a practical tool that's already transforming HR functions in the workplace. From streamlining recruitment processes to resolving employee issues, AI is making life easier for HR professionals—just don’t forget to keep an eye on those potential pitfalls!


And yes, if you’re wondering, we used AI as the basis for drafting this article - demonstrating just how capable AI can be in crafting insightful content!