Artificial Intelligence (AI) continues to reshape industries worldwide, and Human Resources (HR) is no exception. In our most recent webinar, industry experts Justin Shemeley, a Global People Analytics Leader at Ernst & Young (EY); Andrew Elston, a Principal Consultant specialising in Workforce Planning at HSBC; and our very own Jasdeep Kareer, a seasoned Data Science and People Analytics practitioner and now a Senior Director at Insight222 discussed the evolving role of AI in HR and its impact on organisational strategies.

The Current Landscape of AI in HR 

The conversation began with a reflection on the rapid evolution of Generative AI, particularly since the launch of ChatGPT less than two years ago. David Green, the webinar moderator, highlighted how this technological advancement has sparked significant interest from both business leaders and HR professionals alike, emphasising its potential to revolutionise HR processes and employee experiences. People analytics teams are increasingly leveraging advanced analytics capabilities to lead the adoption of Generative AI, aiming to optimise HR outcomes and elevate their organisational value.  

Short-term and Long-term Impacts on HR Operating Models

Justin, shared his perspective on how AI is influencing the HR operating model both in the short term and in long-term strategic planning.

Justin: “In the short term, I don't actually think the ops model is going to change all that much. Our analytics ops model, as suggested by Insight222, works well. We still need solutions engineers, data scientists, and business consultants to collaborate with AI.”

He emphasised the continuity in HR operations while noting the evolving skill sets required to handle more complex analytical demands from businesses.

AI's Role in Workforce Planning and Development

Andrew, focusing on workforce planning at HSBC, highlighted AI's transformative potential in optimising workforce strategies and enhancing decision-making processes.

“AI helps us reclaim capacity for more complex workforce strategy questions. It enables us to identify internal mobility opportunities and conduct scenario planning and hypothesis testing.”

His insights underscored AI's ability to process vast amounts of data, providing organisations with actionable insights for strategic workforce decisions. 

Essential Skills for Leveraging AI in HR

Jas delved into the critical skills HR professionals need to effectively leverage AI tools in their roles. She emphasised the importance of data literacy, ethical considerations in AI usage, and the retention of essential human skills such as emotional intelligence and creativity.

 “Having a basic understanding of AI and data science is becoming essential. Data literacy, knowledge of AI ethics, and critical thinking skills are crucial for interpreting AI outputs and making informed decisions.”

Practical Advice for AI Adoption in HR 

The discussion turned practical as the panellist’s shared advice on adopting AI in HR seamlessly. Justin stressed the significance of starting small with pilot projects and ensuring human-centric design in AI applications.

“Keep it simple, find a real business need, and prioritise high-impact, low-complexity projects. Transparency and keeping the human at the centre of AI initiatives are key.”

Andrew echoed the sentiment, emphasising the importance of involving employees in the AI integration process and showcasing AI's benefits through success stories.

 “Engage employees by demonstrating how AI can help them in their roles and career development. Create scenarios that highlight AI's positive impact and align AI initiatives with organisational goals.”

Building a Strong Foundation for AI Adoption 

Jas provided guidance on building a robust foundation for AI adoption in HR, emphasising the necessity of high-quality data, cross-functional collaboration, and comprehensive training programs. 

“Invest in data cleaning and management, pilot AI applications, collaborate across HR, IT, and data science teams, and prioritise data literacy and ethical AI use in training programs.”

Quick Wins and High-Impact Results 

When asked about quick wins with high business impact, the panellists shared practical examples from their experiences. Justin highlighted EY's success with survey sentiment analysis using AI, which enabled them to extract valuable insights efficiently.

“Mining data for survey sentiment analysis has been a quick win for us. It helps us understand trends and sentiments across large datasets, driving actionable insights.”

Andrew discussed HSBC's implementation of a digital assistant, which significantly reduced HR service case volumes and enhanced operational efficiency.

“Our digital assistant rollout has streamlined HR service requests, reclaiming thousands of hours of capacity for more impactful strategic initiatives.”

Key Takeaways for HR Professionals 

As the webinar drew to a close, each panellist summarised their key takeaway for HR and people analytics professionals looking to integrate AI into their practices.

Justin highlighted that “experiment with AI but start small and be transparent. Focus on human-centric design and prioritise real business needs.”

Andrew emphasised that we should “see AI as an enabler, not a solution. Engage employees and align AI initiatives with organisational goals to maximise impact. 

Finally, Jas shared that we should “embrace AI with a strong data foundation and ethical considerations. Upskill your workforce in data literacy and retain essential human skills.”

Audience Q&A Highlights

The audience Q&A session brought forward several critical questions regarding AI implementation in HR:

Question 1: How do we assess the performance of Generative AI versus human performance, particularly concerning bias and human expertise?

Answer: Evaluating Generative AI involves addressing issues like “hallucination” where AI generates inconsistent responses. Establish well-documented processes and use AI as a supplementary tool to human decision-making. Continuous training to recognise and mitigate biases remains crucial.

Question 2: How does AI influence workforce planning, and what roles might become redundant?

Answer: AI enables employees to focus on strategic tasks by automating repetitive ones. This evolution isn't about making roles redundant but transforming them, similar to historical technological advancements.

Question 3: Can AI help with future predictions, such as predictive attrition and future workforce requirements? 

Answer: Yes, AI excels in predictive analytics, leveraging historical data for accurate forecasts. However, AI should complement human judgment, ensuring effective decision-making.

Question 4: What quick wins have you experienced with AI that had significant business impact? 

Answer: Quick wins include sentiment analysis and rapid prototyping for hypothesis testing, providing insights swiftly and efficiently.

Question 5: Which vendors and AI platforms are you using to automate day-to-day queries?

Answer: HSBC utilises a diverse set of AI platforms, including Oracle and Azure, focusing on seamless integration and ownership of people data.

Question 6: How are you aligning Generative AI and people analytics work with organisational strategy?

Answer: There is significant interest across workforce areas in HR. AI enhances HR's transactional capabilities, transforming roles into skill-based advisory positions.

Question 7: How can someone demonstrate a data science understanding without overstating their skills as a non-data scientist?

Answer: Highlight practical applications of AI tools, focusing on optimising efficiency and analysing data for actionable insights, rather than overstating proficiency.

Question 8: Which HR sub-functions are most promising for implementing Generative AI?

Answer: Talent acquisition is a standout, along with workforce planning and learning & development, benefiting from AI's predictive capabilities. 

Question 9: How important is mastering your own data when considering sharing it with SaaS/cloud vendors?

Answer: Owning HR data ensures transparency and control over AI outcomes, mitigating bias and maintaining regulatory compliance.

Question 10: How are you currently leveraging AI to inform productivity within your organisation?

Answer: AI's impact on productivity is assessed qualitatively, focusing on operational efficiency and client engagement rather than quantifiable metrics.

While AI offers substantial opportunities to enhance HR practices through automation, predictive analytics, personalised experiences, and improved employee engagement, it also presents notable challenges such as ethical concerns, data privacy issues, integration complexities, and the necessity for robust change management and skill development.

Adopting AI in HR and people analytics is crucial, and the field is still in its early stages, necessitating accelerated comprehension of both the opportunities and challenges involved. It's essential to prioritise ethical practices, ensure data quality, approach AI with an experimental mindset, and equip HR professionals to lead as AI pioneers. If you missed the webinar or want to dive deeper into these transformative insights, watch the full session here

ABOUT THE AUTHOR

Justin Shemeley

Justin is an accomplished People Analytics leader with twenty years’ experience leading advanced Analytics, Workforce Planning, and Reporting teams for Fortune 100 organisations. He is currently the Global People Analytics Leader at EY.

Andrew Elston

Andrew is a seasoned Information Technology leader with 22+ years of IT development and operations management experience in the financial sector. He is currently the Global Head, Workforce Strategy Enablement at HSBC. 

Jasdeep Kareer

Jasdeep is a Senior Director on the products and services team at Insight222. She brings a wealth of experience in data science, analytics, and client delivery having worked across a wide variety of industry sectors.

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