GETTING THE BENEFITS OF ARTIFICIAL INTELLIGENCE FOR PEOPLE TEAMS
People teams are turning to technology, particularly artificial intelligence (AI), to streamline operations & processes, but also to enhance their strategic role and decision-making.
AI can manage large volumes of data and extract meaningful insights from it – AI can analyse this data to identify patterns and trends, which can in turn inform many HR activities, from hiring strategies to employee retention efforts.
What are People teams using AI for?
The use of AI can now be seen across teams performing HR activities. It is being used for:
Assisting with talent acquisition processes & onboarding, such as CV screening
Managing performance using real-time feedback systems and predictive models to identify potential high performers/those at risk of underperforming
AI-driven surveys & analytics tools to gauge employee satisfaction & engagement levels
Automation of payroll processes & attendance tracking
Chatbots for employee queries to answer common employee queries and provide 24/7 support
Analysis of workplace data to identify factors which contribute to employee attrition & predict employee turnover, allowing pre-emptive action to enhance retention
Providing deep insights into workforce trends and behaviour, aiding better planning and decision-making
Predictive analytics foreseeing future workforce needs & guiding training programs
Enhancing employee experience through customised learning/development recommendations, learning platforms and career development tools
For any business, its people are one of its (if not, the) most important assets. Managing employees well and keeping them happy directly correlates to a productive and engaged working environment - essential to business success.
Using AI in these ways has the potential not only to boost the operational efficiency of HR departments but also to align HR more closely with business objectives and enhance employee experience, thereby increasing overall job satisfaction and performance.
How does the new EU AI Act come into all of this?
To do these things, and achieve the benefits they can bring, you need to think about the law as well as wider business and ethical considerations.
AI systems used for employment-related tasks are likely to be categorised as ‘high risk’ under the new EU AI Act, which means that they are subject to a prescriptive compliance regime (with fines of up to the higher of €15M or 3% turnover). For ‘banned’ AI systems the fines are €35M/7% (e.g. certain subliminal AI systems). The EU AI Act also requires GDPR-like transparency for some AI systems (e.g. chatbots).
The models used in AI systems, unless designed and implemented correctly, may exhibit bias and lead to discrimination claims
AI systems will be using personal data in new ways, which may include automated decision making. It is important to consider whether employees expect their data to be used in these ways (particularly when used to monitor/track performance/behaviours). This means the GDPR will also need to be looked at again
People teams will need to be alive to the wider ethical and PR issues in any use of these AI systems for HR activities to ensure their use is not just legal but also ethically defensible
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