Embracing Generative AI in Human Resources

Sam Naji, Joseph Tekriti
Human Resources
June 20, 2023
5 minute read
Table of Contents

Generative AI has made significant changes in recent years, especially with the development of models such as OpenAI's ChatGPT. Such technology, which can produce human-like text, has significant implications across many sectors, including Human Resources. Due to this, it is significant for HR managers and workers to appreciate the potential pros and cons of implementing such generative AI in their organizations. In such a changing environment, optimizing between adopting new technologies and understanding the associated risks to enhance human skills and roles within the organization is vital.

The Two Folds of Generative AI

Recent discussions highlight the speculation surrounding generative AI and models such as ChatGPT. Research members from McKinsey discuss the oscillation between the potential of such models and the fear of firms integrating such models. Lareina Yee highlights this split elaborating on the factors dividing this split. Specifically, she mentions that the rapid adoption of generative AI is explored, with OpenAI's recent release of ChatGPT 3.5 as a prime example. Such accessibility of technology by everyone, regardless of education level, income, or location, can give rise to and pose significant changes in talent and job landscapes. One central aspect of such models lies in the versatility across job roles. Specifically, Open AI's research estimates that around 80% of jobs can incorporate generative AI technology. It will massively enhance existing work activities. This adoption could also reshape traditional notions of talent and job requirements. The talent leaders agree that firms and organizations should embrace and increase productivity rather than trying to contain and regulate such AI models.

Spanning Domains: The Versatility of Generative AI

Generative AI is defined as 'technology that prompts the next best answer'. Its applications can span multiple domains, including information summarization, image generation, audio and video creation/detection, and coding. Such a wide range of capabilities is given, with examples showing its usage by firms in combining massive amounts of public data for various purposes.

Bryan Hancock responds with ChatGPT's ability to report his work on talent accurately. However, he also mentions the model's inaccuracy. Specifically, he identified that the model inaccurately identified his alma mater, which prompts a conversation about the logical but not 100% accurate responses. Therefore, highlighting between generative AI and human thinking, acknowledging the roles of shortcuts in decision making. 

Transforming Talent Acquisition and Recruitment with Generative AI

Furthermore, there is also the impact of generative AI on talent finding and the recruiting process. Bryan Hancock mentions two significant values of such models. First, generative AI can help managers improve job requirements by utilizing the skills necessary for success in every job role. It can also enable candidates to personalize, allowing organizations and firms to provide specific experiences based on individual profiles. The latter allows organizations and firms to provide improved efficiency and communication speed throughout recruiting. According to Jeremi Lamri, generative AI can significantly improve recruitment and selection by enhancing efficiency, accuracy, and speed. For example, it can analyze CVs quickly and efficiently, assess candidates' technical and behavioral skills, facilitate automated video interviews, predict candidate success, and reduce biases in recruitment. Beamery, SeekOut, and Eightfold AI are firms applying generative AI to recruit candidates. Microsoft has partnered with SAP to integrate generative AI offerings to help customers address talent recruiting and gaps.

The Need for Validation: Biases and Challenges in AI Implementation

The talent leaders also caution about the necessary validation to ensure accurate judgment. AI models may contain noise in their judgment, leading to biases while making hiring decisions. The potential of generative AI also lies in the ability to tag unstructured data for relevant skills and capabilities. By integrating generative AI, organizations, and firms can move beyond traditional credentials and identify candidates based on the skills associated with their capabilities. The talent leaders also mention the challenges and opportunities for professional growth. The discussion also discussed the challenges and opportunities the generative AI model guides for professional growth. Professionals believe that AI assistants will soon be able to help guide researching, exploring, and applying to various job roles. By integrating generative AI, employees can also gain new insights, organize their goals and improve rounded skill sets, enhancing their overall development. There is also the potential application of generative AI in performance reviews. Bryan Hancock mentioned that while emphasizing human judgment (empathy) in reviews is essential, using generative AI to create initial drafts is more effective. Doing so can streamline the synthesis process and allow evaluators to focus on specific areas of development and growth for each employee. Gartner emphasizes the importance of generative AI, particularly in the media and publishing industries.

Balancing AI Advancements with Human Intentionality

There are, of course, risks associated with generative AI. Particularly such are concerning biases inherited from historical data. Excerpts acknowledge that generative AI can cause noise and biases. Therefore, it is crucial also to include human intentionality and judgment to avoid unintentional propagation, noise, and biases. Regarding employee concerns, there also lies the fear of technological unemployment, specifically replacing human supervisors. Most people advocate embracing generative AI as an opportunity for learning rather than succumbing to fear. Experts emphasize the role of leaders in modernizing talent capabilities in organizations and firms to manage workforce transitions effectively. Lastly, the experts mention the significance of addressing risks upfront, specifically incorporating change management strategies and considering regulation in managing the impact of generative AI. They also stress the need for a responsible implementation and usage of generative AI to optimize returns and evade risks. To further detail, several ethical implications must be considered when using AI in HR. Specifically, privacy and constant are such issues. Organizations and firms must communicate transparently with employees about data collection and how such AI is applied. There are also concerns about devaluations of human judgment. Specifically, while AI can process vast amounts of data and information, it can omit empathy and appropriate contextual judgment. Therefore, it's essential to ensure that AI is used along with human judgment rather than replacing it.

The Transformative Potential of Generative AI in HR

To conclude, there exist many generative AI potentials to transform HR practices. The discussion group offers valuable insights into AI's diverse applications, challenges, and the necessity for human judgment upon integrating such models. Organizations and firms can increase productivity, innovation, and talent development by optimizing the power and risks of generative AI.

Acknowledgment: This article was skillfully crafted with the help of Ansai R.

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