AI in HR: Friend, Foe, or the Future We Should Embrace?

Authored by Rekha Gehani- Human Resources Consultant 

Imagine a startup that is expanding and has just secured funding. The HR team now has the task of scaling the workforce; that too, quickly. They must identify the talent, manage the onboarding, and establish and maintain the company culture in this growth phase. The pressure to meet the goal will definitely be intense. Now imagine that this team has been equipped with AI; they can now automate the screening process, streamline onboarding, and maintain employee engagement. What seemed like a battle looks doable now, right? The reason is AI. However, with HR tasks increasingly being taken over by AI, the burning question arises as to whether AI in HR is a friend, a foe, or the future to which we must adapt.

Recruitment Revolution: How to Be More Efficient without Losing Human Judgment

AI-powered tools are revolutionizing the way recruitment is done. In fact, a recent study by Gartner states that AI-powered tools are reducing time-to-hire by as much as 50% and lowering cost-per-hire by up to 70%. Similarly, in India, various multinational corporations reported improvements with AI-driven recruitment platforms that drastically cut down the time spent in initial screening and shortlisting. All these tools do the work efficiently while sorting through large volumes of resumes, identifying the best candidates for different positions, and even keeping track of interview schedules. While AI is great at handling the logistics of recruitment, one would do well not to forget that the human touch cannot be replaced. One needs human experience and judgment when it comes down to the subtleties of a candidate's personality, cultural fit, and strengths. AI is helpful with support, but human involvement in making the final hiring decisions always helps ensure a perfect fit within an organization.

Predictive Analytics: The Leap from Reactive to Proactive HR Management 

AI has also impacted HR through predictive analysis, by enabling corporations to predict employee flight risks with up to 95% accuracy. Deloitte, in its report, estimated that 72% of companies worldwide believe that through such analytics reports, they can improve customer experience. Organizations in India have also started using such tools for managing proactivity in the workforce and reducing the rate of attrition. Predictive analytics is basically a tool of empowerment for HR to implement talent management in a manner that increases the satisfaction level of employees and reduces turnover. 

Learning & Development: Achieving Personalization at Scale

AI is making personalization possible in L&D, on a scale that was unimaginable earlier. According to a report by Worldmetrics, AI-based learning platforms can increase course completion rates by up to 50%, as people get recommendations fitting their career goals and interests. In recent times, the Artificial Intelligence in education market size has grown exponentially. It would increase from $3.99 billion in 2023 to $5.57 billion in 2024, at a CAGR of 39.7%. While AI may suggest the right courses and resources, the role of HR professionals is to ensure that these learning opportunities translate into real growth and development. Although AI-driven personalization is immensely powerful, it works a lot better with human guidance and support attached.

Employee Experience: Balancing Automation with Human Touch

AI-powered chatbots handle 60% of routine queries on HR globally, freeing the resources to be utilized toward more strategic initiatives. This phenomenon is not very different in India either, with several firms deploying AI-powered chatbots for smoothening employee interaction. However, while AI can effectively handle routine inquiries, it lacks that touch of empathy and understanding that comes with human interaction, especially when there is a situation of grievance or a matter requiring human sensitivity. The balancing act now lies as a challenge with HR in deploying AI at routine inquiries, yet retaining a strong human presence in those touchpoints that really matter. 

The Future of HR: Ethics in AI Implementation

The changing face of AI within HR means that it is not just about adopting these technologies, but the onus also lies in ensuring the ethical and strategic implementation of these technologies keeps pace with their adoption. AI should be used to make the workplace a more human place rather than taking away the humanness from it. With careful management by HR leaders, the role of AI can be ensured to be that of an enabler of empowerment and fairness rather than a source of alienation. 

To sum up, AI in HR is neither friend nor foe; it's the future to be embraced. With thoughtful implementation and due diligence, AI has the potential to grow into a powerful ally on that mission at hand: creating more efficient, fair, and human-centric workplaces. Indeed, the responsibility lies with the HR leaders, to shape this future wherein technology amplifies and enriches those human elements which make the workplace tick.