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AI in HR: the New Frontier INTRODUCTION the Robots Have Arrived INHR PEOPLE + FOCUSSTRATEGY’S WHITE PAPER SERIES AI in HR: The New Frontier INTRODUCTION The robots have arrived. Only they don’t look like robots. AI- and machine learning-based technology is embedded in the tools you likely interact with every day—navigation apps; predictive text in e-mail and messaging; digital assistants like Alexa and Siri; and recommendation engines on Netflix, YouTube and Spotify. Today, AI-powered technology seamlessly integrates into the things we already do—and it’s poised to do the same for HR. Since AI-based solutions predict, recommend and communicate based on data, AI has the opportunity to transform HR practices in areas where there is adequate data and where that data can be utilized to create greater efficiency, communicate at scale, provide recommendations and predict outcomes. Many companies already have a vast amount of data on candidates and employees that can help them source, assess, hire, train, develop and pay people more efficiently with the application of AI-driven tools. he International Data Corporation smarter hiring choices that ensure quali- T(IDC) estimates that worldwide spend- ty hires while eliminating hidden biases. ing on AI systems will reach $35.8 billion The recruiting process is filled with in 2019 and $79 billion by 2022. And Gart- numerous repeatable tasks such as re- ner estimates that, by 2022, AI-derived sume screening and interview scheduling business value will reach $3.9 trillion. that, when given to AI, free up recruiters’ With its vast amount of underutilized time to focus on what matters: the human data, HR has the potential to lead digital interaction between candidates and com- transformation and drive business value pany personnel. And that can be done at with AI-powered solutions. scale with an intelligent chatbot trained to conduct preliminary screening and RECRUITING manage the interview process. Recruiting is the most well-developed The interview process is rife with bias, area of AI in HR, for several reasons. The and many of these tools help reduce race, vast size of the recruiting funnel—from gender, education and age biases. A key job ad impressions, careers site visits, caveat is that an AI-based system can only applications and hires—offers a wealth return results as good as the data and the of data that AI-powered tools can learn training put into it. For instance, if your from. Additionally, the recent talent employee population leans toward certain shortage in a strong economy means that profiles, algorithms based on matching the NOVEMBER 2019 companies are paying closer attention to characteristics of current employees with candidate experience and investing more candidates will not help increase diversity. PRODUCED BY EXECUTIVE NETWORK in recruiting tools to improve it. Finally, However, with oversight, AI can correct HR PEOPLE STRATEGY shortening employee tenure has driven hidden biases. (See the final section of this WRITTEN BY companies to seek out ways to make paper for a discussion on the ethics of AI.) Josh Bersin 1 HR People + Strategy’s White Paper Series IN FOCUS | AI in HR: The New Frontier ©HR People + Strategy 2019. hrps.org INHR PEOPLE + FOCUSSTRATEGY’S WHITE PAPER SERIES Recruiting Process AI Solution Candidate Selection Screen candidate resumes, rediscover talent from existing pools Sourcing Surface appropriate candidates from online profiles, facilitate referrals Recruitment Marketing Automated job ad placement and bidding Screening Natural language processing (NLP) based chatbots to screen candidates, re-engage talent pools Interviewing Video interview analytics, chatbot-enabled scheduling, interview process analytics and predictions Assessment Assessments based on skills and cultural fit Diversity and Inclusion Identify and reduce bias in job descriptions, candidate communications, and interview patterns LEARNING AND EMPLOYEE DEVELOPMENT matching, virtual reality (VR) training Talent availability, rapid technology and micro-learning help provide em- change, and shifting candidate behav- ployees with the knowledge they need ior are some of the factors contributing to succeed on the job. to companies’ increased focus on reten- Internal mobility is a growing area AI-powered tools tion through reskilling employees, pro- of focus, and some companies are hav- facilitate employee viding better learning and onboarding ing success using AI-based systems growth through that look at job experience inside and programs, and developing top employ- automated matching ees into leaders. outside the company, and match this An Edelman study found that 59 per- information against open positions, of inferred skills, cent of global employees fear job loss offering employees guidance on where recommending due to a lack of retraining and skills. they might go next. adjacent skills, and Companies that invest more in “learn- ing in the flow of work” are well poised CORE HR AND SERVICE DELIVERY serving up relevant to attract and retain employees, as well learning content. as to ensure their business stays com- Core HR petitive: 62 percent of global execu- Time tracking, payroll, expense reporting tives believe they will need to retrain and benefits administration are benefit- or replace more than a quarter of their ing from AI-powered analysis, employee workforce by 2023 due to advancing nudges and predictive capabilities. An automation and digitization. important area is compensation. AI-powered tools facilitate employee PayScale’s 2019 study of compensation growth through automated matching of practices found that less than 40 percent inferred skills, recommending adjacent of companies do any compensation eq- skills, and serving up relevant learning uity analysis for race or gender. With a content. Additionally, AI-based coach massive set of pressures facing companies Function AI Solution Learning Learning/training matching, learning content delivery Coaching/Mentoring Coach/mentor matching Internal Mobility Skills matching and recommendations against openings 2 HR People + Strategy’s White Paper Series IN FOCUS | AI in HR: The New Frontier ©HR People + Strategy 2019. hrps.org INHR PEOPLE + FOCUSSTRATEGY’S WHITE PAPER SERIES right now for gender pay equity reporting, AI IN ENGAGEMENT, PRODUCTIVITY it’s prime time for AI-based tools to help AND WELLNESS companies determine fair pay and ensure all employees are being paid fairly. Employee Engagement and Compensation is a tricky topic because Feedback Systems there are so many objective factors that In the evolution of employee engagement should determine pay: education, experi- to employee experience, companies now ence, work responsibilities, performance consider every aspect of how an employ- ratings and market competition. AI can ee engages with his or her job, the com- help determine fair pay in a way that pany and colleagues. eliminates subjective biases like gender, The annual survey has gone by the race, age and favoritism and that identifies wayside in favor of continuous feedback potential inequities. in the form of pulse surveys and other feedback systems that can be analyzed HR Service Delivery with NLP-based tools. Such tools can sur- With the trend toward employee experi- face key themes, help diagnose manager ence, employers now have to design HR effectiveness and detect risks stemming services relating to pay, benefits, expens- from discrimination or harassment. es and paid time off (PTO) requests for The largest employee audiences expecting consum- Organizational Network Analysis organizations have er-grade experiences in the workplace. The highly networked workplace has built employee service The largest organizations have built vast amounts of data from e-mail, calen- employee service centers and self-ser- daring, messaging platforms and motion centers and self-ser vice vice portals that merge HR, IT and other sensors that can be fed into systems using portals that merge HR, workplace services like badging, commut- organizational network analysis (ONA). IT and other workplace er passes and gym discounts. This technology can help companies AI-based chatbots already have a foot- identify strong influencers, patterns of services like badging, hold with customer service organizations: strong or weak teamwork, micro-man- commut er passes and 37 percent of service leaders are either pi- agement and nondiverse or noninclusive gym discounts. loting or using artificial intelligence bots communications. and virtual customer assistants (VCAs), The applications of ONA are as vast and 67 percent of those leaders believe as the data available. By analyzing time they are high-value tools in the contact spent in meetings, it can help eliminate center. time wasted in unproductive meetings. Chatbots based on natural language Analyzing the behavior of sales teams processing (NLP) have the ever-in- against performance can help identify creasing intelligence to answer routine new sales processes. Looking at motion employee questions and assist with em- patterns from embedded sensors can cre- ployee journeys, freeing up HR admin- ate more efficient processes and realistic istrators to focus on more complex tasks. guidelines based on data versus hunches. HR Area AI Solution Compensation Pay equity, recommended salary adjustments and raises HR Service Delivery AI-based chatbots for routine employee questions, employee journey assistance, process automation for HR transactions 3 HR People + Strategy’s White Paper Series IN FOCUS | AI in HR: The New Frontier ©HR People + Strategy 2019. hrps.org INHR
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