Integrating artificial intelligence into the HR process
Quick summary
Artificial intelligence is transforming HR functions, including talent acquisition, learning and development, performance management, and employee relations. To adopt AI successfully, HR departments should focus on three core areas: developing safeguards and best practices, managing workforce change thoughtfully, and equipping HR teams with the right skills and mindsets. Done carefully, AI adoption reduces risk while maximizing productivity and strategic impact.
Introduction: Why AI matters for HR
The rapid expansion of artificial intelligence (AI) into the workplace presents both new opportunities and challenges for HR departments. Talent acquisition, employee learning and development, performance management, and even employee relations are all functions where AI can play an important role. From high-volume routine tasks to high-level strategic planning, AI can help HR departments boost productivity and take on more important tasks.
There are a number of things HR professionals can and should do to enable an easier and more effective transition for their company.
Developing AI safeguards and best practices
To support successful AI adoption, there are a number of safeguards and practices professionals may want to implement.
Create an AI support team
To minimize risk to the company, HR should create a team with subject matter experts from the IT, HR, legal, and risk departments to guide AI use as it pertains to their area of expertise.
Review existing company policies
This includes considering how confidentiality, data security, and information technology policies apply to AI use.
Develop policies and processes
It’s a recommended best practice for policies, procedures, and restrictions regulating departmental use of AI to be created and implemented. Put safeguards in place by developing checklists and other materials explaining what the HR team should be looking for when using AI. Include a process for reporting AI errors, bias, and other undesirable output, and incorporate inclusivity, accuracy of information, and safety and troubleshooting protocols.
This includes ensuring AI output and decisions are being reviewed and monitored by humans. It’s particularly crucial that significant employment decisions, such as those pertaining to hiring, firing, and compensation, not be made without careful review by a real person. Consider instituting multilevel human review processes of AI-generated decisions.
Monitor AI use for bias
An increasing number of states and municipalities are proposing and enacting laws specifically regulating the use of AI tools, particularly automated decision-making systems. HR managers should run regular tests to ensure all groups are being treated fairly. They should also review the company data AI is using that could contribute to biased outcomes and remove data that could cause biased results. It’s critical to also create a process to report and fix biased decisions.
Institute audits of AI tools
It’s important that employers make sure the AI vendors they use are regularly auditing their AI tools. Employers should also conduct their own audits of AI tools they develop and/or use.
Key takeaway: By putting protective measures in place, employers can be more confident that AI won’t expose them to legal claims and even lawsuits.
Workforce change management
Introducing AI into the workplace should be done with thoughtfulness and careful planning. Employees may react to the news that AI is now being used by HR with skepticism or even fear.
They may be concerned about AI being involved in the terms and conditions of their employment and could fear AI will make decisions about their jobs that could affect their lives. To build trust, it’s a recommended best practice for employers to explain in simple terms what AI is being used for, why it’s being used, and how it works.
Employers should also emphasize that AI will augment HR’s functions, not take them over. It’s important to stress that AI will help HR make better decisions, not replace human judgment.
How HR can maintain employee trust during AI adoption
Here are a few things HR can do to help assuage employee fears and maintain their trust:
Communicate clear and transparent policies
Have clear and transparent policies that are communicated and accessible to all employees pertaining to when and how the HR department will use AI. Educate employees on what AI is and how it will be monitored.
Understand and explain AI decision-making
Have a clear understanding of AI algorithm processes and decision-making to be able to explain them to employees as needed. If an employee asks why an AI-assisted decision was made, HR must be able to explain the logic in plain English.
Maintain an open-door policy
Have an open-door policy, allowing employees to express concerns about AI-related decisions. Consider instituting a grievance process, allowing employees to appeal employment decisions that affect them.
Share positive outcomes
Share positive outcomes resulting from AI usage with employees. For example, this might include HR staff having more time to interact directly with employees.
Key takeaway: HR personnel can ensure their department’s use of AI is well-received by allowing employees to feel seen, heard, and supported.
Setting HR teams up for success
In order to maximize the benefits of AI tools, it’s crucial that the employees using them are empowered with the skills and mindsets to do so.
Train HR staff
AI is still very new and constantly evolving and changing. Like any new technology, it can feel daunting for some new users. HR leaders will want to provide ongoing educational opportunities and learning experiences. Give team members time to practice and experiment with these tools. Start out slow and with easier tasks, building up to more advanced usage when they demonstrate their ability to do so.
Address HR staff concerns
HR staff may be cautious about integrating AI into their job functions and may fear AI will make their jobs obsolete. It’s important to explain the benefits of AI usage to them and reassure them that it will allow them to extend their capabilities and career prospects rather than replace them. Some benefits to stress include boosted productivity, increased opportunities, and improved creativity and innovation.
Promote team collaboration
By making AI learning a shared, teambuilding opportunity, team members can share knowledge and learn from each other. For example, consider having meetings during which staff can share their questions and things that have worked best for them.’
Conclusion
While it can be tempting to jump in and implement AI throughout the workplace, it’s important to do it carefully and thoughtfully. By doing so, companies can enjoy less risk and greater benefits.
Frequently asked questions
What HR functions can AI support?
AI can play an important role across multiple HR functions, including talent acquisition, employee learning and development, performance management, and employee relations. It supports both high-volume routine tasks and high-level strategic planning.
Who should be part of an HR AI support team?
An AI support team should include subject matter experts from IT, HR, legal, and risk departments. Each expert helps guide AI use as it pertains to their area of expertise, minimizing risk to the company.
Should AI make hiring, firing, or compensation decisions on its own?
No. Significant employment decisions, such as those pertaining to hiring, firing, and compensation, should not be made without careful review by a real person. Multilevel human review processes of AI-generated decisions are recommended.
How can HR prevent bias in AI tools?
HR managers should run regular tests to ensure all groups are being treated fairly, review company data AI is using that could contribute to biased outcomes, remove data that could cause biased results, and create a process to report and fix biased decisions.
How should employers communicate AI adoption to employees?
Employers should explain in simple terms what AI is being used for, why it’s being used, and how it works. They should emphasize that AI will augment HR’s functions rather than replace human judgment, and maintain transparent, accessible policies for all employees.
Will AI replace HR jobs?
AI is intended to augment HR functions, not take them over. AI is positioned to extend HR staff capabilities and career prospects by boosting productivity, increasing opportunities, and improving creativity and innovation — not to replace HR workers.
What should HR do if an employee challenges an AI-assisted decision?
HR should be able to explain the logic of AI decision-making in plain English. An open-door policy and a grievance process allowing employees to appeal employment decisions that affect them are recommended.
Why are AI audits important?
Regular audits — both by AI vendors and by employers themselves — help ensure AI tools function as intended, remain fair, and don’t expose the company to legal claims or lawsuits. Several states and municipalities are also enacting laws regulating automated decision-making systems.
