How HR Leaders Can Prepare for AI and Automation

Artificial intelligence and automation will change the future of human resource management. Nearly 76% of HR leaders believe AI is the future of HR. 38% of HR leaders have explored or implemented AI solutions to improve process efficiency. 76% of HR leaders believe not adopting AI in the next 12-24 months will put them behind competitors. HR leaders can utilize AI to reduce resource-intensive processes, eliminate mundane tasks and streamline documentation. 

This article provides a guide on HR preparation for AI and automation. It discusses the strategic role of HR in navigating this transformation and includes practical strategies on how HR leaders can leverage AI to enhance workforce management while maintaining a human-centric approach.

Understanding the Impact of AI and Automation

AI will have a significant impact across tech industries and job roles and will present challenges and opportunities. AI isn’t here to take a person’s job; it can help employees do their jobs better and more efficiently. 

People can witness the impact of AI and automation in numerous industries. For example, in the technology sector, 32% of job roles and 69% of headcount are at risk of significant disruption from AI. In life sciences firms, 23% of job roles and 34% of headcount are at risk of disruption from AI. In HR, AI will also disrupt 24% of roles and 58% of headcount. 

However, it is important to note that while AI may disrupt certain roles in how they operate, this emerging technology will redefine existing roles and create new ones. Correctly utilizing AI can improve workforce flexibility and productivity. 88% of people believe AI plays a fundamental role in their daily work. AI has the potential to optimize services and improve workflow. 

Strategic Workforce Planning

AI has the potential to transform key aspects of HR such as hiring and recruitment, screening, talent management, salary and benefits planning and retirement planning. However, to incorporate AI and automation effectively, tech recruitment managers must implement effective strategies to balance AI-driven efficiency and the human touch. Here’s how HR leaders can ensure the responsible deployment of AI and automation for strategic workforce planning:

• Align AI adoption with the organization’s vision, mission and values. 
• Transform data into actionable insights to improve decision making and workforce planning and optimize recruitment processes. 
• Leverage algorithms and machine learning to evaluate and improve performance, productivity, engagement and turnover. 
• Generate and analyze employee feedback to determine staff satisfaction and make productive improvements in HR policies and workplace culture. 
• Assess current skills within the organization versus abilities needed for future growth to identify gaps and implement training, reskilling or upskilling initiatives.
• Conduct performance trend analysis to identify high-performing employees and reward them accordingly.

Upskilling and Reskilling Initiatives

HR leaders can’t underestimate the importance of continuous learning and development programs to prepare tech employees for future roles in a business environment that’s highly competitive and technology-driven. AI is here to stay, and it’s the responsibility of HR leaders to prepare the workforce accordingly. Business executives expect that by 2026, AI literacy will be at the top of the list of critical workforce capabilities. 

Several leading companies have implemented upskilling employees for AI to improve their HR processes. For example, IBM used Watson with natural language processing to analyze job descriptions, match candidates and reduce hiring time. Salesforce has also used AI to enhance employee experience and improve productivity and customer satisfaction.

Redesigning Roles and Organizational Structure

Many jobs will likely change because of AI and automation. AI may also lead to role shifting and headcount reductions. But this doesn’t mean there will be no place for humans. Company leaders must redesign jobs and create specialized roles that require the human touch and support AI tools.

Tech leaders must stay ahead and work with business managers to plan for the impact of AI on the workforce and focus on role design, organizational structure and skills to accommodate AI. The goal shouldn’t be to replace human talent with AI but to find relevant roles for both in the new workplace model.

Creating Flexible Work Policies

Managing a workforce with AI will have different dynamics. HR leaders must understand the importance of flexible work policies in the future workplace environment and implement strategies that can incorporate flexibility while maintaining productivity and engagement. Tech recruitment managers can use AI tools to plan optimization, assign resources and adjust schedules. AI tools can also help determine employee satisfaction and engagement levels, allowing HR leaders to improve policies and work environment.

Leveraging Data and Analytics

With AI, companies can use data-driven approaches and workforce analytics to make informed decisions about talent management and improve HR initiatives. IBM uses AI to predict employee performance with 95% accuracy, enabling proactive measures to retain key talent and save significant costs associated with employee turnover. Unilever implemented an AI-driven recruitment platform that processed over 1.8 million applicants, reducing the average hiring time from four months to a few weeks and increasing the diversity of its workforce. As long as HR managers can use AI and data analytics ethically, they can transform the shape of the future workforce.

Building a Strong Employer Brand

Tech businesses will need to build and develop their branding strategy to follow the expected changes that AI and automation are likely to bring. This is important because tech professionals tend to research companies before applying, including an organization’s social media presence. Hence, employer branding is integral to an effective recruitment strategy. As part of an employer branding strategy, AI tools can help HR leaders improve transparency in communicating to existing and potential employees how the organization uses technology and automation. 

Conclusion: Leading the Way in the Future of Work

It’s evident that AI is here to stay and will impact jobs, headcounts and workflows. HR leaders have a crucial role to play in the technological transformation. They can: 

• Use AI to optimize hiring processes and embed tech solutions to improve key HR activities.
• Ensure that the organizational workforce accepts the changes likely to accompany the implementation of AI and automation. 
• Provide a structured approach to facilitate AI adoption and maximize the potential benefits associated with AI technology. 
• Maximize the positive aspects of AI and ensure that the challenges associated with technology have no negative effects on the workforce. 
• Embrace their role as change agents in the age of AI and automation, and be the inspirational force that guides the workforce in the right direction.

For additional support and guidance on how to prepare your team for AI and automation, contact our staff today for more details.