Four Practical Tips for Incorporating AI in HR

It feels like Artificial Intelligence (AI) is EVERYWHERE we turn! So, yes, this is another blog about what it means for your small business. Why? Because AI is revolutionizing many aspects of business, and HR is no exception. Instead of avoiding it, let’s tackle it head-on so you can learn ways to maximize it for your business, how to balance it with human expertise, and what mistakes to avoid. Human judgment offers an irreplaceable value, but AI can be leveraged to benefit you and your team. 

The Rise of AI in HR

AI is transforming HR, offering new tools and efficiencies, from automating routine tasks to enhancing recruitment processes. While AI technology is increasingly used in HR functions and capabilities, it’s not a one-size-fits-all solution. Each business has unique needs, and leveraging AI without losing the human touch requires a nuanced understanding. By balancing it with human judgment, small businesses can navigate this evolving landscape effectively and set their team up for success. 

Key Considerations

While we’re seeing a rise in artificial intelligence across a variety of businesses, HR is a unique sector that requires specific considerations. While HR leaders look forward to benefits of using AI, such as increased productivity and collaboration, there are also concerns about bias, errors, privacy, and security.

Understanding Non-Discriminatory Factors: AI can help streamline hiring, but it must be used carefully to avoid discrimination. Federal and state laws protect various classes, including race, color, religion, and more. Some states offer additional protections, so it is essential to stay informed about the latest labor law updates. For instance, Colorado recently passed the Colorado Artificial Intelligence Act that was designed to protect against algorithmic discrimination. This occurs when the system disfavors an individual or group on the basis of protected characteristics, leading to unlawful employment decisions.

Balancing Efficiency and Human Judgment: While AI can handle yes/no questions and draft documents, it cannot replace the nuanced judgment required in HR. Recognize that while it can help filter potential candidates’ resumes based on job requirements, it can’t successfully navigate legal landmines throughout the hiring process. A human touch is necessary to evaluate cultural fit (or organizational fit) and other subjective factors, especially with an increase in skill-based hiring today.

Training and Upskilling Your Workforce: AI is only as good as the people who use it. If you plan to integrate AI into your team’s work, start by establishing and communicating a Use Policy. Set clear expectations about how and when it is acceptable to use. Then, think about proper training and how to invest in upskilling your workforce to ensure they can effectively utilize AI tools. This will help improve efficiency and employee engagement. 

Four Practical Tips for Incorporating AI in HR

If you feel like it makes sense for you and you’re ready to incorporate AI into your small business, try these four tips to get you started. 

1. Start Small and Scale Up

Begin by integrating into specific HR tasks, such as resume screening or drafting offer letters. Monitor the results, adjust until you have the desired outcomes, and gradually expand AI’s role as you and your team become more comfortable with the technology. 

2. Ensure Human Oversight

Always have an HR professional review AI-generated insights. AI can provide valuable data, but decisions should ultimately be made by experienced HR personnel who can interpret and apply this information contextually.

3. Stay Informed and Compliant

Regularly update your knowledge about relevant laws. INFINITI HR provides Monthly State Law Updates as a service to subscribers. Compliance is crucial to avoid legal pitfalls and ensure fair treatment of all employees. Always refer to reliable sources, such as the EEOC’s guide on employment discrimination

4. Talk with Your Team 

Introducing AI requires careful consideration about how it will impact your team. Change in the workplace always requires a strategy to navigate transitions. Communicate clearly with your team about the benefits and limitations of AI. Address their concerns and provide training to ease the transition. Create space for a dialogue with your team so you can understand their experience using AI and how they’d like to use it moving forward. Don’t work in a vacuum; partner with your IT counterpart to discuss risks and how to best transform your HR processes.

What’s the Future of HR Look Like?

The future of HR will likely involve a blend of AI and human expertise. AI can handle repetitive tasks and provide data-driven insights, but human judgment is essential for interpreting these insights and making strategic decisions. The responsibility for compliance, security, and strategy falls to human oversight. By understanding your risk tolerance and incorporating AI thoughtfully, you can improve efficiency without sacrificing the personal touch that is crucial in HR.

INFINITI HR can help you adapt to industry changes and stay ahead, ensuring you always have the personal expertise required.

 

Interested in other current employment trends? Click the link to view the recent blog: Wading Into Changes in the Workplace – Without Worry! or check back for more on human resources, payroll, insurance, and benefits.