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Challenges in applying AI in HR and the Algorithmic approaches in HR
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James Matt Caraan Master of Science in Human Resource Management
Benefits if AI in HR
How is AI used in HR? Recruitment and Hiring Recruitment and hiring were some of the first areas where AI was applied to improve processes. Subsequently, AI has been incorporated into various parts of the recruitment process, from sourcing and pre-selection to interviewing and developing fair compensation. Onboarding and Offboarding Great employee onboarding can improve retention by 82%. Ai-driven onboarding platforms can support organizations and HR in creating an engaging experience for their employees by ensuring that necessary forms are filled in, relevant policies are shared, and training sessions are scheduled. Workforce Planning AI can also be very useful in workforce planning. Analytics platforms equipped with AI capabilities can crunch vast amounts of employee data to uncover trends, predict turnover, and highlight potential skills gaps. Learning and Development AI can enable personalized learning experiences for each employee. AI tools can analyze the learner’s performance and adapt the curriculum or content to their needs and preferences.
Challenges of AI Sincerity and Transparency While AI has proven beneficial to eliminate manual tasks and allow for data-driven efficiency, some processes, like onboarding or offboarding, benefit from the human touch. Without human interaction driving these moments, companies may lose sincerity in their communications, which may harm their rapport and reputation. High Implementation Cost Introducing AI into HR systems can be expensive, especially for smaller companies. The cost of purchasing AI tools, training HR staff to use them, and maintaining the technology can add up, making it a significant investment that not all organizations can afford. Resistance to Change AI represents a big shift in how HR operates, and not everyone may be ready or willing to embrace it. HR teams and employees may be sceptical about relying on AI for critical tasks like hiring or performance evaluations. This resistance can slow down the adoption of AI and limit its effectiveness.
Adoption Personas Skeptical Avoider This persona doesn’t actively use AI because they don’t see it as valuable or necessary in their role. Therefore, they lack motivation to prepare themselves for a future where AI is heavily adopted in HR, may hold a negative view towards artificial intelligence in HR, and risk being left behind. The Reluctant User This persona is typically in a workplace where AI is being actively used in daily HR processes, but they use it reluctantly and minimally, usually because they don’t understand it or have trouble integrating it. HR leaders should raise awareness of the benefits of using AI to these users and start with low-risk, high-impact AI applications to build trust.
Adoption Personas Active User This persona utilizes AI for tasks such as research, content creation, and task automation. Although they see the benefits of full adoption, they lack opportunities to experiment with AI and lean heavily on self-learning to deepen their knowledge. Adoption Champion The final persona actively uses AI across multiple HR practices, including personal productivity and better decision-making, and is eager and willing to experiment with new technologies and tools. They are typically found in companies that make significant investments in AI and help to champion the use of AI in their organizations.
Evolution of Digital and Technolocgical HRM
Evolution Electronic HRM Automating and streamlining HR processes, making information more accessible, and improving efficiency.
HRIS, Online Portals, electronic document management
Digital HRM Going beyond automation to leverage technology for strategic HR initiatives, employee engagement, and data-driven decision-making.
Using social media for employee communication, implementing online learning platforms, and analyzing workforce data.
Algorithmic HRM Leveraging algorithms to process data, make predictions, and automate tasks like recruitment, performance management, and talent development.
AI-powered resume screening, algorithms for predicting employee turnover, and automated performance feedback.
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