Will HR be replaced by AI? 63% of companies are rethinking their HR department

60% of HR professionals think AI will have a positive impact on how HR operates, a recent survey from People Management software provider Advanced reveals. But in a world where new technology is being deployed at an ever-increasing pace, HR professionals must reimagine how their role functions in the modern workplace.

  • PwC research has shown that 63% of companies are rethinking the whole role of their HR department in light of the impact AI will have on the business.
  • According to a global study from Harris Insights, while more than 80% of employees in the US and UK believe having AI skills will give them a competitive edge, 42% don’t believe their HR department can execute it.
  • ‘Nearly 80% of executives rated employee experience as important. But just 22% reported that their companies were excellent at building a differentiated employee experience.’ – 2017 study by Deloitte

Are the HR bots coming?

HR departments, or more recently People and Culture teams, aim to improve employee engagement and experience. However, the reality is that they often get tied up in large amounts of admin tasks. AI and automation can relieve some of this pressure, but it also has the potential to make the employee experience less personal.

Alex Arundale, Chief People Officer at Advanced identifies the challenges and opportunities of AI and automation in HR teams: “HR’s dual role of strategy and empathy is not easily replicated by machines, but those whose functions are purely process-focused will need to become more relevant in order to survive in the future. It is important for HR professionals to develop skills and competencies that will be crucial in the digital world, such as critical thinking, emotional understanding, creativity and collaboration – as well as gaining more STEM skills. The key is to maximise the strengths of AI while enhancing the contributions of HR professionals.”

Making processes more efficient

Arundale says: “AI is seen by some as a threat, with its mechanisation of huge numbers of tasks and sometimes entire roles – but it is also an opportunity to rethink the organisation and take ownership for smarter ways of working.”

AI offers an opportunity to boost efficiency by automating tasks like ticketing and generating insights through dashboards. This allows HR professionals to focus more on human interactions, enhancing the overall employee experience. AI’s objectivity can also help with complex processes like pay reviews, ensuring fairness. Moreover, it can analyse social network data to gauge employee sentiments.

Arundale notes that this would not replace jobs, but rather transform them: “HR Business Partners could become the ‘front end’ of HR, backed by a vast amount of AI doing the transactions.”

Recruitment

Research indicates that 70% of a recruiter’s time is currently spent sifting candidates. From processes such as talent screening, booking and re-booking interviews, reminders, and even passive candidate sourcing, AI tools can greatly increase efficiency.

Other HR innovations

  • Employee portal: Staff can access real-time information about holidays, expenses, and payroll without needing to ask
  • Employee experience chatbots: requesting holidays, submitting expense forms, answering common questions, birthday messages, onboarding, conducting employee sentiment and feedback surveys, attendance
  • Next-level training: Identify skills gaps, microlearning, which can quickly close skill and knowledge gaps, experience platforms, AI-based systems and Virtual Reality (VR)

Arundale concludes that new technology will benefit both employees and HR professionals: “HR leaders have increasing ownership of their technology platform. In the past, this technology was designed around the organisation rather than the employees. However, this is changing as HR professionals embrace a people-first approach – allowing employees to take greater control of their career management.”

For a full rundown of Advanced’s insights into the future of HR, visit: www.oneadvanced.com/news-and-opinion/workplace-technology-predictions.

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