Four Key Uses for GenAI in HR

GenAI is transforming the field of HR with many use cases. Here are four of the key ones that HR teams are implementing now.

November 26, 2024

One of the great benefits of AI is that it can boost productivity and effectiveness when used well in various fields. One field being transformed by the implementation of Generative AI (GenAI) is human resources (HR). Here are four key ways HR can harness the power of GenAI to achieve more:

1. Supercharging recruitment and hiring

Using GenAI, HR teams can create compelling job postings that accurately reflect the role and company culture. Having analysed historical data and current market trends, GenAI is able to help craft job descriptions that attract suitable candidates and stand out in a crowded job market.

Moreover, GenAI can assist in screening CVs and generating tailored interview questions, saving time and ensuring a more targeted interview process. AI can sift through hundreds of applications in little to no time, identifying the most suitable candidates based on predetermined criteria. 

Another useful application is in communication with candidates. GenAI can draft personalised emails for various stages of the recruitment process, from initial outreach to rejection letters, meaning all candidates remain informed throughout the process, and no one is left wondering if their résumé was ever received.

2. Enhancing employee training and development

By analysing an employee's skills, performance data, and career aspirations, GenAI can provide personalised learning and development suggestions. This approach enables every employee to receive training that aligns with their individual needs and the organisation's goals.

GenAI can also assist in creating and updating training materials to ensure they remain current with industry requirements. This is particularly valuable in rapidly evolving fields such as cybersecurity, where staying up-to-date is crucial.

Furthermore, AI-based coaching tools are gaining in popularity. These tools, like Rocky.AI, can offer employees real-time feedback, answer questions, and provide insights, mimicking the benefits of one-on-one coaching sessions, which can be challenging for all employees to have equal access to.

3. Streamlining HR administration

By assisting with drafting and updating HR policies, and ensuring they are consistent and up-to-date, GenAI can significantly reduce the burden of admin tasks on HR professionals, allowing them to focus on more strategic work.

For payroll and compensation-related work, GenAI can help by analysing market trends and internal data to suggest competitive salary packages. It can also assist in generating payroll reports and calculations, reducing errors and ensuring accurate and timely payments.

GenAI can even power a chatbot to serve as a first point of contact for employee queries. These AI-driven assistants can handle a wide range of HR-related questions, from policy clarifications to leave requests, freeing up HR professionals to focus on more complex issues.

4. Boosting employee engagement and relations

GenAI offers innovative ways to improve employee engagement and relations, such as helping to create personalised communications like welcome letters and performance feedback.

Moreover, GenAI can assist in designing and analysing employee surveys, enabling HR to make more informed decisions. By processing large amounts of feedback data, it can identify trends and areas for improvement that might be missed by human analysis alone. 

GenAI can also be used to enhance the company intranet, transforming it into a dynamic hub of knowledge and communication. Advanced conversational search capabilities allow employees to quickly find information, ask questions, and receive instant responses, improving productivity and enhancing the overall employee experience.

Challenges to bear in mind

As with almost any tool, there are risks to consider when using GenAI for HR work. The main concerns usually include the following:

Data security concerns: Nearly three-quarters of respondents to a Littler Mendelson survey were moderately (41%) or very concerned (30%) about the challenges of complying with data protection and information security laws. This concern is well-founded, as GenAI systems often require access to vast amounts of sensitive employee data to function effectively, potentially exposing organisations to risks of data breaches and privacy violations.

Bias and error: Just like humans, AI algorithms can hold biases and make mistakes. This is usually down to the data they are trained on (or not trained on). Bias in GenAI can be especially problematic in fields such as HR, where processes such as recruitment can have a life-changing impact, and the right candidate could be overlooked due to something as simple as an algorithm favouring baseball over softball hobbyists.

That being said, when implemented safely and with the necessary considerations in mind, GenAI can be an extremely helpful tool for HR work, from recruitment processes to continued engagement. Its integration will likely be a game-changer for organisations, enabling them to attract, develop, and retain top talent in an increasingly competitive landscape.

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