AI in HR – what is the art of the possible?

There is much talk about the use of Generative AI to both streamline HR service delivery, as well as improve employee and manager experience in their interactions with HR processes. Whilst many organisations have adopted some forms of AI – for example, use of screening tools in Recruitment and chatbots in query/case handling, there is still some uncertainty about where else AI can add value and how ready both the technology and organisations are to implement.

This at a time when 60% of HR leaders report uncertainty about the impacts of evolving technologies on HR and talent*. So, what part can GenAI play to deliver more effective people processes and in so doing, enhance the role of HR within the organisation?

We believe that AI has the potential to have a real and positive impact, not only on service efficiency but in enabling HR to play a more strategic role in organisational development, including design and development of the human skills of tomorrow. We’ve included just a few short and sweet summary thoughts here from Pulsar – not exhaustive but more to come!

1. Getting the HR house in order

AI algorithms have the potential to automate repetitive, and hitherto manual tasks to reduce processing costs, accurately, consistently and at speed, thus freeing up HR capacity to focus on additional value add activities. Importantly, AI solutions can scale, enabling organisations to manage growing workloads without incurring additional HR and labour costs. Some example processes include using AI chatbots and sentiment tools to collect employee feedback in real time and crunching through volume Recruitment activities, such as screening and some candidate communications.

2. Delivering an improved experience

Studies repeatedly point to employee and manager frustration with internal processes and in particular, middle manager overload with administration**. Using AI to automate basic administration for the workforce could alleviate pressures, release time for more value-add activities and importantly, drive a better user experience. Having happier employees and managers typically leads to improved engagement, greater job satisfaction and ultimately, employee commitment and retention.

Specifically, use of AI to support Managers in undertaking People related processes would not only relieves the admin burden but should ensure more time to really focus on what’s critical here – employee wellbeing, performance and development needs. For example, if AI can be deployed to identify training and development needs, Manager time spent identifying learning paths and interventions could be saved.  

3. Better insight, informed decision making

AI could be applied to crunch through and analyse vast amounts of data, bringing people related insight to the HR function, such as current trends and patterns, the ability to anticipate future trends and potential outcomes, and providing HR with insights across recruitment and workforce planning, talent management and performance. Used effectively, these insights would inform HR strategy and priority setting, policy making and updating, influence Health & Wellbeing programmes, and even inform key talent flight risk assessment.

4. Greater HR capacity, strategic focus

As the wider impacts of AI on organisations are assessed, many CEO’s are considering the structures and operating model of tomorrow – how to organise and the critical human skills required to drive success. In this context, HR has an important strategic role to play in defining those skills, and the interventions that will deliver that future state. This might involve Workforce Planning, Talent Acquisition and Retention, Succession Planning and Development approaches, to name but a few.

Not only could AI support activities such as skill shortage identification, high potential spotting and matching employees to roles, it’s use releases that strategic HR capacity to focus on how to support the organisation in making change happen.

In summary

AI presents the HR function with an opportunity to showcase how it can transform process and service outcomes and, with greater functional capacity, drive the strategic people change agenda. More to come on future HR focus and identifying the skills of tomorrow!

*Gartner, 2024 HR Priorities Survey.

**(PwC CEO survey 2023)

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