Generative AI in HR: The complete guide
The usage of AI for hiring and Human Resources presents significant opportunities for modern companies to automate mundane and repetitive tasks, thereby supporting their operations. Additionally, it is an effective way to save resources and enhance profitability. This text provides a detailed guide on the implementation of Artificial Intelligence in HR.
According to Reuters data, ChatGPT is a phenomenon in recent tech history. The tool reached a 100 million users threshold in February, just two months after its launch. Just to put this into perspective - the most popular social network in the world - Facebook - needed 4.5 years to reach this level. For Instagram it was 2. years and for TikTok, nine months.
The release of this machine learning tool marks a clear indication of entering a new era—the era of applied AI in every aspect of life, ranging from personal operations and productivity to business and society as a whole.
However, ChatGPT is not only an impressive example but also part of a larger trend of building solutions based on Generative Artificial Intelligence (AI).
What is Generative Artificial Intelligence (AI)?
Generative AI refers to a type of Artificial Intelligence that is specifically designed and developed to create content, including texts, images, movies, and data. The content is generated based on the user's input or "prompt." Users can request various types of content, as long as it adheres to the tool's policies.
For instance, users can ask the Generative AI system to write an email or a social media post based on a one-sentence draft provided by the user. It can also review and rephrase content according to the user's desired style.
In the case of image generators, they can create new visuals based on a text prompt or manipulate existing images. For example, a user could take an existing image (such as the Pope) and place it in a new context (such as wearing a puffer jacket instead of a robe).
AI has entered the market at an intriguing moment, particularly within the challenging environment of modern Human Resources.
7 Challenges HR will face in the near future (and how to tackle them with Generative AI)
Modern Human Resources departments need to combine multiple qualities that weren't considered required a decade ago. Apart from recruiting and sourcing, there is a good deal of hard HR job to do and a plethora of new responsibilities. These include remote job coordination, well-being monitoring, and worklife-balance management.
And these are only the tip of the iceberg.
The War for Talents
On the flip side, the scarcity of available workers also translates to a limited pool of talent for companies. Moreover, the advancing sophistication of modern technology raises the bar in terms of required skill sets and abilities for talented individuals. Changes in tech stacks, demand for soft skills, and ultimately, a small number of well-educated individuals who meet the highest requirements become the norm.
As companies fiercely compete for these exceptional talents, it places significant pressure on HR teams to attract and retain them.
How GenAI can help
Generative AI tools are highly effective in processing vast amounts of data. When equipped with web-browsing capabilities, these tools offer a valuable opportunity to alleviate the tedious and meticulous work of sourcers and spotters.
Additionally, GenAI tools like ChatGPT can automate the initial stages of communication. For instance, if repetitive messages need to be sent to potential hires, certain parts of those messages can be composed by GPT-powered assistants, enabling personalized recruiting with the power of AI.
In this model, HR teams can focus on delivering top-quality work, freeing up their time and creative abilities to impress potential hires with a personalized touch.
Globalization and Work Organization
The pandemic has made remote work the new norm. Despite the initial disruption, this shift has provided companies, particularly in creative and tech fields, with access to a global workforce. Furthermore, this trend has encouraged companies to outsource and offshore various aspects of their business operations.
How AI technology can help
Effective communication is crucial in all forms of outsourcing, and the challenges tend to increase with greater distances involved. For instance, if a company is outsourcing services to another city within the same state or even to a neighboring state, the communication may not pose significant challenges.
However, when outsourcing processes to regions such as Asia or Eastern Europe, intercultural communication challenges arise. Language and cultural barriers can be difficult to overcome. Yet, by employing AI tools to facilitate communication between both parties, the process becomes much smoother.
Once again, artificial intelligence in the HR department aims to simplify and streamline operations.
Training and Skill-building
As mentioned earlier, talent acquisition will become increasingly challenging in the near future, even more so than it is today. When it becomes nearly impossible to hire talented and skilled individuals externally, organizations can turn to nurturing and developing talent in-house.
How implementing AI can help
AI, particularly ChatGPT, has demonstrated its effectiveness as a tutor and support system for acquiring new skills and forming new habits. With a healthy dose of skepticism, the advice provided by a robotic coach can yield remarkable results. The story of Greg Mushen, who got addicted to running by following the guidance of ChatGPT, lost 26 pounds and actually built a habit of regular running is only one of the multiple examples. Ai recruiting platform can be supported with AI-powered training platform as well.
Another challenge is about keeping employee experience high and the employees engaged in their work. According to the data gathered by Wellable, up to 85% of employees are disengaged in their work, while quite quitting getting more and more awareness. This makes only 15% of the workforce actually engaged in their duties.
How AI implementation can help
Tools like ChatGPT can be utilized to enhance employee screening and mood assessment. Through smooth and natural conversations, the chat tool can ask questions and gather information about an employee's mood and overall well-being.
Employee Health and Wellbeing
The pandemic has highlighted the importance of addressing burnout and mental health in the workplace. This has made the role of HR departments even more challenging, as they now need to focus not only on traditional engagement strategies and performance reviews but also consider the modern context of employee well-being. According to the Forbes Health up to 21% of the whole US population has experienced a mental health condition. Statistically, it makes one in five employees in a typical US company suffers from a mental condition of some sort.
How to leverage AI so it can help us
One advantage of using AI in human resources is that machines are fair and non-judgmental. They lack biases and opinions, as they are incapable of forming them. When properly used and communicated, this provides an opportunity for employees to share more details and information, as it may be easier to do so with non-human entities rather than with real individuals who may carry biases or lack complete independence in their thoughts.
This ironic aspect of using artificial intelligence in human resources highlights the need for efficiency that comes from not being human. ChatGPT-like tools can also serve as personalized coaches or consultants, providing a first line of screening or diagnosis when dealing with employee mental health issues.
Retaining the Workforce
Retaining employees in a highly volatile job market, where multiple offers come from all around the world, can be extremely challenging for HR departments. However, Generative AI can assist hr managers in building a comfortable working environment for employees. With support from the IT department, tailored solutions can be created to support the workforce in their everyday duties.
How AI tool can help
By relieving employees of time consuming tasks and allowing them to focus on the most inspiring and empowering aspects of their work, they become less likely to seek job changes. We can start implementing ai into onboarding process, employee training, or even payroll processing and keep changing hr processes into more friendly, so our employees stay with us longer.
Lack of workforce
First and foremost, the challenge is the shrinking population. The fears of overpopulation are seen in classic sci-fi works (with an iconic “Make Room! Make Room” opening the list), yet the doom is probably never to come. According to the UN data, in 2021 up to 60% of the global population was living in countries with birth rates below 2.1 per woman. This makes these countries' populations effectively shrinking.
According to Statista data, Gen Z, people born between 1997 and 2012, currently count 69.58 million people in the US. Yet the previous generation of Millennials count 72.24 million people. This makes the pool of available talents in the population smaller by nearly 3 million - roughly a whole state of Kansas less!
This brings a huge concern for the HR management depts - it will be hard to find the employee because there may not be PEOPLE to work!
How AI powered tools can help
The shortage of available workforce can be addressed by shifting certain tasks to robots. Generative AI models like ChatGPT have demonstrated their effectiveness in supporting the workforce across various tasks, including analytics, writing, and conceptual support. By incorporating ChatGPT plugins into external applications and within ChatGPT itself, the role of hyper-automation will become increasingly prominent.
This emphasizes the importance of automating tasks whenever possible as a means to counteract the scarcity of available workers. A prime example is the use of AI in recruiting software, where machines handle repetitive administrative tasks, of sorting and scoring candidates.
Besides recruiting software, hr leaders can also finds AI tools useful with for example employee engagement, that helps discover employee sentiment or skills gap to help teams become more engaged and working on organizational success
Like any new technology, ai systems can be leveraged for the benefit of companies. Given the capabilities of large language models, HR professionals can potentially derive significant advantages from incorporating these tools into their operations and recruitment process. If you would like to further explore the implementation of AI in hr, including the use of GenAI-based systems, please feel free to contact us now!
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