The Impact of AI and Automation on HR and the Workplace

The use of artificial intelligence (AI) has increased significantly across the board, with implementations in all types of industries, from healthcare and finance to retail and education.

Human resources, although it’s not normally seen as the most exciting sector in the world, is also benefitting greatly from advancements in AI tech and automation, saving staff a great deal of time and effort while also allowing them to perform their jobs more accurately and efficiently.

Of course, AI is always accompanied by concerns surrounding job displacement and the dehumanisation of work. People are concerned that over time, we’ll slowly lose the very essence of what makes us human by allowing robots and automated systems to do everything for us.

While this concern isn’t completely invalid – that is, we really need to keep an eye on AI tech and its capabilities – it’s also a little bit on the dramatic side. If controlled and monitored, AI and automation technology have the potential to seriously improve operations in HR, as long as it’s done in conjunction with human intervention.

Companies that offer human resources software solutions in the UK include:

1. Rippling
2. Deel
3. BrightHR
4. Factorial

The Good, the Bad and the Scary

As with any and all types of technology, there are both positive and negative issues that the use of artificial intelligence in HR introduces. In some ways, the advantages pose massive opportunities for increased efficiency of HR, while the disadvantages become obstacles to progress.

On the most extreme level, however, the are also significant fears surrounding the real potential of AI. A lot of that is based on scary sci-fi movies and technology that doesn’t even exist, but we still need to keep an eye on such concerns and be realistic about where the technology is heading.

Pros of Using AI in HR

The idea behind developing and implementing AI technology in business is to make improvements, and in the context of HR, there are some very real ways in which it can make operations better.

• Improved Efficiency: By automating tedious and time-consuming tasks, employees and HR departments more generally can improve efficiency dramatically. This allows for more time to do other important things without having to waste time on monotonous tasks.

• Data-Driven Decision Making: AI technology provides opportunities for data to be analysed more effectively and efficiently, the results of which can be used to inform strategic business decisions. This is incredibly useful since a lot of the time, without AI-powered analysis, the data provided is simply too vast for humans to effectively analyse, so often, valuable insights are missed. Ultimately, AI allows for smarter decision-making based on data.

• Improved Experience for Candidates: The use of AI-powered technology and software is good for both employees and businesses more generally, but it’s also great for employees and candidates applying for jobs. Since the technology can improve efficiency and operations more generally, candidates tend to have improved experiences through the application and recruitment process.

• Reduced Bias: Whether it’s conscious or subconscious, it’s incredibly difficult to totally remove biases related to dealing with employees and hiring new candidates, as much as you may try. In fact, some argue that it’s simply not possible. However, AI can’t be biased (unless you tell it to be), so using AI systems to analyse data and make decisions can help make things totally fair.

• Long-Term Cost Savings: Some companies are put off AI software because of the costs involved in purchasing it as a form of SaaS and in implementing and running it. However, in the long term, using AI-powered software can actually save money, because employees will be more efficient, they’ll have more time for other tasks and companies are more likely to hire appropriate candidates to fill vacant positions.

Overall, the potential advantages of using AI in human resources can’t be ignored. Although it may be a little more expensive at the outset, it’s bound to be worth it in the long run.

Cons of Using AI in HR

While the positive aspects of using AI in HR processes are aplenty, we would be remiss to ignore the potential negatives. Not only is it totally normal to have potentially problematic ramifications of using new technology, but acknowledging and understanding them provides an opportunity to mitigate the negative impacts.

• Concerns Surrounding Job Displacement: Fears surrounding job displacement certainly aren’t unique to HR, but the concern is very real, and in many ways, rightfully so. The ability to automate so many important processes means that companies won’t need as many so-called “low-level” HR employees to do basic tasks. Invariably, there will be people who lose their jobs. However, the part of this concern that’s unrealistic is the fear of everyone losing their jobs. While some people will be replaced by AI-powered automation programmes, there will always be a need for humans to monitor and oversee the department in some capacity.

• Algorithmic Bias: AI can’t impose biases based on preference, however, there are cases in which technology can accidentally impose algorithmic bias. This means that the AI won’t be coming up with its own biases, it’ll simply be reinforcing and exacerbating biases that already exist in the data that it’s provided.

• Privacy Concerns: HR manages and works with data and information that can be private and secure, so having AI involved in dealing with this kind of data immediately introduces concerns about how secure these platforms are. On the other hand, many people worry about the ways in which AI can be used to monitor and conduct surveillance on employees’ activities. And this isn’t always meant in an overly sinister way – it may simply be employees that don’t like the idea of their bosses tracking their hours and activity during work hours.

• Over-Dependence on Tech: Many fear that since AI has such great potential to make employees’ lives easier, employees may become overly reliant on technology. The problem here is that if the technology were to fail, HR personnel and whole departments wouldn’t be able to function, which would be incredibly problematic.

• Losing Human Touch: The overarching concern that people seem to have about AI in HR and across the board is that ultimately, it’s going to result in a loss of human touch. That is, everything will be automated and done according to due process without accounting for emotion and other changing factors.

All of these concerns surrounding the use of AI in HR departments are valid, at least to a certain extent. For instance, making extended use of AI software in HR departments will reduce the need for human employees in some ways and there will be a realistic possibility that the systems will impose biases based on the data it’s provided with.

However, all of these risks can be mitigated in one way or another – there may be some potential truth to them, but that doesn’t mean that they’re all real in their most extreme forms.

Indeed, robots aren’t going to replace everyone in HR, biases can be handled by providing systems with more data, privacy can be protected by means of laws, improved encryption methods and more.

Fears Surrounding the Use of AI in HR

Most of all, many people ignore and negate the potential positive influences that AI can have and is having on HR departments and operations as a whole.

By using AI software to improve operations in terms of efficiency, efficacy and more, departments can run more smoothly, save money and just generally, do everything better and faster.

AI and automation software are set to have a very positive impact of HR operations, as long as software is implemented properly, staff are well trained and everyone keeps their eyes wide open to potential issues.