Advantages of AI in HR
The use of AI can help HR provide insights into the organization's biggest challenges and solution ideas through algorithms that can analyze a variety of data sets. Without the knowledge of AI, the HR department must rely on past experience to make decisions. Also, personal biases and inaccurate information can often lead to inaccurate decision-making. When employees no longer need to perform every day and lengthy office tasks, they can focus on increasingly complex tasks. Artificial intelligence enables all HR functions to be more efficient and focused, so HR has more time to focus on strategic and creative activities that drive value in the organization. The human touch is still a key component in many HR activities, such as personal problem-solving and counseling. However, efforts to keep the human element do not need to depend on time-consuming digital dissemination of detailed paper and email review processes.
People are the most important business asset however, HR activities are often perceived as administrative tasks. With automation, AI, and advanced analytics, human resources can harness the power to become strategic and have a more powerful impact on people. As the onset of digital transformation and innovation in different business areas began in the field of human resources, changes can also be felt in daily work, which previously needed to be solved by employees, so they could focus on more complex business issues. Data from surveys show that companies that have implemented and perfected advanced technologies in the field of human resources report a more positive impact on business performance. Therefore, the integration of AI technology in the field of human resources plays an important role in the development of the company.
Disadvantages of AI in HR
Because of AI, human workers might be stripped of their authority, liberty, as well as their responsibilities, thus causing a decline in the collective capabilities of employees. Don't get me wrong, I’m not saying there will be a decline in the quantity of work performed by human workers. Instead, what I’m saying is that the quality of the work performed by them might deteriorate over time.
There are a couple of disadvantages of artificial intelligence in human resources that come to mind. By no means do I believe that these should deter you from deploying AI in HR, but it's these disadvantages that are cited by those who are less than pleased with the technology. One of these possible disadvantages of AI in HR is the possibility that it might fabricate biases. When you understand how artificial intelligence works, it is easy to realize that it cannot only detect biases but also eliminate them. The truth is, biases only float to the top when our algorithms are wrongly architected, or when our data is filthy. Again, this is not the fault of AI technology, but rather, the architect of the AI technology with its datasets.
With the introduction of AI in HR, concerns about the problem of biased algorithms became even more urgent. Algorithmic bias refers to a flaw in algorithms that cause them to often leads to unfair outcomes, such as worse opportunities for people of different genders or races.
When we talk about the 'cons' of AI in HR, naturally, one of the biggest talking points concerns profit and jobs. Research has revealed that 49% of U.S. companies have undertaken some form of AI in their HR, and among all companies, it is forecast that there will be a 2.3 times increase in the lifetime value of high performers compared to low ones. With this statistic in mind, HR managers or teams might eventually end up dismissing their most mediocre workers as demand for the most efficient workers increases disproportionately, reducing staff strength and demand for certain jobs, and leading to some layoffs.
By Eric Vandervert, MBA, MScHRM, SPHR, SHRM-SCP
