The UK Government AI Action Plan has fueled the discourse around the AI revolution. It aims to revolutionise the public services and accelerate economic growth.
AI is being hailed as a game changer across industries. It will redefine the way organisations compete and operate in an ever-changing global landscape.
Human Resources is lagging behind in this wave of innovation.
McKinsey global survey for 2024 shows that HR is one of the slower functions to adopt AI. Only 12% of teams have adopted AI, compared with 34% in marketing and sales.
A recent report, the Lattice 2020 State of People Strategy Report suggests that the problem is partly due to HR’s inability to move from evaluating AI potential to actually using it. According to the study, 38% admit that they are still stuck in the informal discussion of AI’s potential uses. This is unchanged from last year. This is a situation that cannot be tolerated.
The HR profession is already at a crossroads. If it doesn’t start to use its strategic muscle, HR is at risk of becoming a low level administrative function.
Accenture data suggests that senior executives recognise HR as a key component of business success. They expect HR to bridge the gaps between people, data, and technology.
In a article from 2023, Dr Tracy Brower explains that it is not only about the profession adopting technology in its own operations. She says that HR needs to “understand the impact of technology on work, employees and workplaces.”
The AI boom of the current era offers HR professionals a unique opportunity to redefine their roles within organizations.
HR can accelerate the transformation of culture by embracing AI. The profession will have better tools to create high-performance, purpose-driven cultures that are centered on people. This is what organisations need in these challenging times.
Senior leaders in many organisations expect HR to use AI to streamline processes, enhance productivity and drive operational efficiency.
But HR professionals who are forward-thinking understand that the true value of AI lies beyond these tactical uses. AI can be used to transform workforce management by analyzing complex data and uncovering meaningful trends.
AI can have a significant impact on the employee experience. The traditional pulse surveys are widely recognized as being inadequate. Typically, they provide only surface-level information and leave employees feeling disillusioned because little is done to address employee concerns.
Next-level EX insights
AI allows organisations a more dynamic approach. They can build employee experience dashboards which constantly monitor the thoughts and feelings of their employees.
The data can be used to create culture dashboards, with alerts being sent to managers or HR when an area flashes ‘amber.’ The alert serves as a reminder to dig deeper and find out what’s going on.
Perhaps the marketing team faces mounting pressure due to an impending launch of a product, but lacks enough resources or people to make it happen. Perhaps there is conflict in the IT department due to miscommunications or disagreements among colleagues about project direction.
AI gives HR a clear view of the current state of affairs in any business at any time. HR can then proactively intervene, perhaps by offering a temporary staffing solution or supporting line managers in facilitating dialogue between rival colleagues.
IBM, Accenture, and Salesforce are among the companies that have been reported to use AI this way. They adopt this technology to increase engagement, create a positive work environment, and reduce attrition.
Accenture, as an example, uses AI to track employee sentiments, streamline onboarding of new hires, and suggest personalized skills development programmes for its staff. Salesforce uses its AI platform, meanwhile to analyze performance data and levels of engagement. This insight can help foster a collaborative environment by identifying ways for employees to collaborate based on shared goals or areas.
These companies show that AI is more than a tool to increase efficiency. It can also be a catalyst for meaningful cultural change.
The CIPPD recently reaffirmed the need for HR professionals to be proactive in implementing AI in their organizations.
Hayfa Mohdzaini is the Senior Policy and Practice Adviser at CIPD for Technology. She says HR should develop clear guidelines on ethical and responsible AI use in the workplace, while also ensuring data protection and fair treatment.
Mohdzaini says that HR should also work closely with their union partners who are concerned about possible exploitation and unconscious bias. She says practitioners need to “foster an environment of cross-team cooperation, assisting employees to develop their skills or to reskill if necessary” to ensure that no one is left behind when AI transforms the workplace and careers.
HR can no longer afford to ignore the AI revolution, as organisations face unprecedented levels of economic, political and environmental instability.
The profession plays a crucial role in helping businesses create value for stakeholders, society and shareholders.
HR can become one of the most important strategic functions for the company by using technology to co-pilot the process.
