In a rapidly evolving landscape, the integration of artificial intelligence into HR practices is fundamentally altering how organizations manage their workforce. A recent report from Wilton & Bain highlights the profound impact of AI on streamlining processes, enhancing decision-making, and fostering a more innovative workplace.
October 25, 2024 – The integration of artificial intelligence into HR is not a trend; it’s a transformative shift that is reshaping how organizations manage people, optimize processes, and drive innovation. As businesses seek to enhance efficiency and effectiveness while fostering a more dynamic and engaging workplace, AI and automation are increasingly being implemented into HR strategies, according to a new report from Wilton & Bain’s Foyin Awosika. The search firm sat down with six HR experts across various industries to gather their insights on how we can expect AI to influence the HR industry today.
“AI has transformed the nature of HR work, particularly through the increased automation of routine administrative tasks,” the Wilton & Bain report said. “However, it would be wrong to think that it is only now, after the emergence of ChatGPT, that we are seeing HR adopt AI.” Ben Redshaw, an interim CHRO, explains that: “We have actually seen the work of narrow AI at play for years, where computer systems have been trained to perform cognitive tasks like learning patterns, making predictions and solving problems,” he said. “This sort of AI is what would have enabled someone to filter their inbox, for example.” Though in more recent times, the HR experts we interviewed have observed that we have seen an increasing need for HR professionals to streamline their manual processes and systems to focus more on strategic and creative initiatives rather than being occupied by manual processes, the Wilton & Bain report explains.
For example, Donna Lovitt-Edwards, head of organizational development at Informa Connect, mentioned how her organization has successfully automated the basic transfer of data between systems, saving her team 20 hours per week – equivalent to half a full-time position. Similarly, Steven Bianchi, who has a reputation for helping early-stage founders turn ideas into unicorns via his Organization Logic and Silent Partner brands, shared how his team successfully implemented an AI-powered chatbot to handle routine employee queries about policies, benefits, and leave requests, including voice-activated triggers through Amazon Alexa.
This innovation reduced their HR team’s administrative workload by approximately 30 percent. These efficiency gains therefore allowed their teams to redirect their focus towards higher-impact (strategic) activities. These efficiency gains therefore allowed their teams to redirect their focus towards higher-impact (strategic) activities.
“While these AI implementations are impressive, the potential for AI-driven efficiency in HR doesn’t stop there,” the Wilton & Bain report said. “Some of the experts expressed that in future, we can expect to see AI further automate and enhance performance management processes in a way that would continuously gather and analyze performance data, provide real-time feedback, and suggest personalized development plans. Such a system would not only streamline performance management but also free up managers and HR professionals to concentrate on coaching and strategic workforce planning. This is what will really differentiate a company’s culture for a competitive advantage.”
Related: How to Use AI to Stand Out to Executive Search Consultants
Wilton & Bain also shared that drawing from their respective experiences implementing AI, the experts offered valuable advice for other HR leaders looking to leverage AI. Mr. Bianchi recommends starting small and scaling gradually, focusing initially on automating repetitive, time-consuming tasks. However, Bunmi Alabi, HR director of Diageo in Southern, West and Central Africa, has a slightly different view, as she advises HR leaders to start small and scale rapidly. While they suggest slightly different approaches, they both emphasize the importance of including good change management practices and training to ensure the team is prepared for the transition. Ms. Alabi adds to this perspective by advising that having a clear strategy is crucial, along with ensuring that the culture is right for AI implementation to avoid potential biases, and she recommends taking an experimental approach to technology implementation.
For Mr. Redshaw, he emphasizes the importance of a good explainability of AI for those interested in adopting AI. He therefore advises HR leaders to start by asking their HCM system vendors three critical questions about their AI-enabled offerings:
• How does it work? How explainable is the AI offering?
• What should we use / not use it for?
• How do you test for bias and how is your system compliant with relevant regulations?
This approach, he suggests, helps HR leaders build a solid foundation of understanding and avoid the pitfalls of biased or non-compliant AI.
Artificial intelligence (AI) can have a significant impact on executive search by streamlining the process and improving decision-making. AI tools can help identify candidates with the right skills and experience, and can also predict how successful they might be in new roles. The ExeQfind Group often get questions from both clients and candidates regarding the impacts of artificial AI on talent management and executive search. “Talent management and executive search processes are no different from virtually every existing industry in that AI can be expected to bring about change and influence,” says a new report from ExeQfind’s Javier Iglesias. “How much and to what degree of change and influence is yet to be determined.”
Furthermore, it is also inevitable that as HR evolves in this AI era, new skills are becoming essential for the HR function. Philip Eames, an interim senior talent acquisition director, feels as though HR is moving towards being “increasingly data-driven with additional skills needed to focus on clean, effective and connected data. We should expect to see more HR operations resource (including data/AI skilled professionals) and HR business partners focused primarily on strategic non-admin based activities. The challenge will be to balance the resource investment required to manage HR-AI activities, with the underlying pressure to keep HR function costs (and headcount) as lean as possible.” Mr. Bianchi agrees with this perspective as he explains how “HR was [traditionally] more relationship-driven and now it’s more process driven.”
Given this outlook, the experts were all in consensus about the top skills HR professionals would require to remain future-fit: data analytics, data and digital literacy, prompt engineering, data-driven decision making and strategic thinking.
In addition to these skills, Holly Quincey, the chief talent officer of Lloyds Banking Group, highlights that HR will require people who are “resilient to change, can change at pace”, agile, and adaptable.
“Upskilling in these skills is therefore crucial for HR professionals especially if we expect the HR sector to flourish in an AI-driven world, rather than being left behind by the technology,” the Wilton & Bain report said.
The second theme Wilton & Bain explored was surrounding AI’s role in enhancing HR decision-making. The firm notes that by providing more accurate and timely data, AI allows HR leaders to make better-informed decisions across various functions, including talent acquisition, performance management, and employee engagement.
Ms. Lovitt-Edwards and Mr. Bianchi illustrated how their teams use AI to analyze internal and
external data quickly, improving decision-making in talent acquisition and strategy formulation. While Ms. Lovitt-Edwards’ talent acquisition and strategy formulation team use an AI-powered tool similar to ChatGPT to analyze both internal and external data promptly which improves decision making, Mr. Bianchi’s team uses predictive analytics to identify the most promising candidates during talent acquisition by analyzing patterns from past successful hires.
“A common concern is that AI will replace the need for human judgment and the HR industry altogether, but the experts clarified that this is simply a misconception,” the Wilton & Bain report said. “AI should support rather than replace human decisions.”
The experts stressed the importance of balancing AI-driven data insights with human judgment to ensure decisions are both data-driven and contextually appropriate. While AI shortens the process by doing initial analysis, the final judgments, especially for high-impact decisions, should remain with humans, they said.
So, we can’t rely on AI to do the high-impact decision makings. Wilton & Bain notes that this is especially important because, like humans, technology also has its flaws. AI is not always perfect, which means that there are times where you cannot wholly trust its outputs. ‘So how am I expected to trust AI-generated data?’, you might be wondering. The HR experts recommend ensuring the data source is reliable, and always validating the outputs. If your data architecture is fragmented, your AI results will definitely be unreliable, the study explains.
“AI’s ability to personalize learning paths is one of its most impactful contributions to talent development,” the Wilton & Bain report said. “Organizations can use AI to analyze employee skills, career aspirations, and learning styles to recommend tailored learning content and experiences. This approach ensures that employees receive the most relevant training, enhancing their skills in areas critical to both their personal growth and the organization’s strategic goals.”
AI is also transforming how organizations approach employee engagement and retention. Mr. Bianchi explained how predictive analytics can be used to identify employees at risk of leaving and AI-powered sentiment analysis to gauge employee mood in real-time. These tools enable proactive interventions, allowing HR to address potential issues before they lead to turnover. Ms. Quincey also explains the role that AI plays in mapping out career paths for employees by matching their skills with suitable roles and development opportunities, thus fostering a more engaged and motivated workforce.
One notable example of AI-driven talent development is Mr. Bianchi’s “Skills of the Future” program. This initiative uses AI to analyze industry trends, business strategies, and employee data to identify critical skills needed for the future. Employees are then provided with personalized learning paths to develop these skills, significantly improving internal mobility and reducing external hiring costs. This initiative is similar to Ms. Quincey’s experience implementing Eightfold – a talent management platform – whilst she was the global head of TA at Bayer, which used AI to predict future roles for employees based on their skills, and to recommend relevant development programs to fill any gaps.
As AI becomes more integrated into HR processes, it brings with it a host of challenges and ethical considerations that HR leaders must navigate carefully. Ms. Alabi explained that one of the most significant ethical concerns is data privacy. “HR teams need to ensure that employees are aware of what data is being collected and how it’s being used,” Wilton & Bain said. “Transparency and strict data protection policies are needed to maintain trust between employees and the organization. Our other experts echoed this point of view, discussing the importance of giving employees control over their data through self-service portals to foster that sense of ownership and transparency.”
“Addressing biases in AI algorithms was the most commonly identified critical challenge amongst the experts,” the report said. “Biases often stem from the data fed into AI systems, which can perpetuate historical biases if not carefully managed. To mitigate this, the experts recommend transparency and regular bias testing, noting that diversity in the teams that are developing and overseeing AI systems is crucial to catching biases that might otherwise go unnoticed.”
Furthermore, Ms. Lovitt-Edwards and Mr. Bianchi both noticed that some HR teams were apprehensive to adopt new technology in their processes due to fears around job security and ethics. To address this, they upskilled their HR teams through coaching and training to better understand AI’s role in the workplace to augment roles, not replace them. Bianchi also maintained human touchpoints for sensitive issues, gradually introducing AI-assisted processes.
As AI continues to advance, HR leaders must balance the need for innovation with ethical responsibility, according to Wilton & Bain. For example, to ensure ethical use of AI, Mr. Bianchi’s organization follows guidelines set by international bodies like the IEEE’s Ethically Aligned Design and the EU’s Ethics Guidelines for Trustworthy AI. “All the experts stressed the importance of maintaining human oversight in AI implementations to ensure that ethical considerations, cultural alignment, and the nuances of each situation are factored into final decisions,” the report said.
Overall, Wilton & Bain has seen how AI is fundamentally transforming HR by enhancing efficiency, driving innovation, and personalizing employee experiences and talent development. “However, this shift is not without its challenges; HR leaders must carefully balance AI’s capabilities with ethical considerations such as data privacy and algorithmic biases,” the search firm said. “The insights shared by our experts emphasize that while AI can streamline processes and improve decision-making, it must be implemented thoughtfully, with a strong focus on transparency, human oversight, and upskilling HR professionals. As AI continues to evolve, its success in HR will depend on how well organizations integrate these technologies while maintaining their core values and fostering a culture of trust and fairness.”
Please contact Tim Baker or Chloe Watts if you would like to discuss these topic further!…Read more by Dale Zupsansky
