Like virtually every function within an organization, artificial intelligence and data analytics is making a seismic impact on HR.
Scott Walker, CEO of Brightmine, a global firm based in the UK that provides HR leaders with data, analytics and insight, has seen the impact firsthand. Formerly known as XpertHR, Brightmine is part of LexisNexis Risk Solutions. He spoke with StrategicCHRO360 to share how he sees the transformation taking place.
How are AI and data analytics transforming HR practices across industries?
Over the past several years, the workplace has become more volatile with economic shifts continuing to impact the talent market. The fast-moving regulatory landscape is creating challenges for HR teams and the emergence of generative AI requiring major strategic shifts.
More than ever before, HR leaders need clear insights to make data-driven decisions that move the workforce forward. AI and data analytics are key to providing insight into workforce trends, regulatory changes and people analytics, allowing HR leaders to make strategic and informed decisions.
While AI and data analytics are critical, combining technology with human intelligence is where we’ll see the greatest impact, from productivity increases to cost savings. Our research revealed that organizations that effectively leverage their data analytics were more likely to report improvements in key performance indicators like employee engagement and talent turnover.
For example, when utilizing AI and data analytics to conduct pay equity analysis, AI can save time and resources by compiling reports that help HR leaders understand gaps and identify the root cause of inequities. But human intelligence is needed to ensure that organizations make actionable changes and communicate it effectively. Using AI and data effectively relies on organizations’ ability to appropriately identify where to use technology to provide real insights and leverage human intelligence to put them into action.
How can AI assist HR teams with compliance and risk management in today’s increasingly complex regulatory landscape?
By leveraging AI, HR teams can identify potential compliance issues before they turn into legal or financial pitfalls. For example, AI can monitor regulatory changes in real-time, alerting HR teams of any changes that may impact HR policies and practices, ensuring that they’re always up to date.
Employee handbooks are a lesser discussed area of compliance concern for companies but can result in significant compliant risk if not updated with the latest regulations. According to our research, just two percent of organizations revise their employee handbooks more frequently than annually, despite there being hundreds of mandatory local, state and federal changes each year.
With constant legislative changes, human error easily comes into play. Plus, there is the time spent keeping up to date with all these changes. AI-enabled technology can support proactive maintenance of handbooks, lessening the risk that a mandatory law is missed, and leaving more time for HR teams to focus on their people.
How can HR leaders drive AI readiness in the workplace and what leadership challenges must be overcome to achieve sustained AI success?
To create an AI-ready workplace, collaboration between HR leaders and other C-Suite members—from the CTO to the CFO—is critical to solve the challenge of both initial buy-in and company adoption. This leadership collaboration should not only be present in the early stages of AI adoption but should continue post-integration to help identify areas of success and needed improvement so leadership teams can make the company’s AI strategy more effective.
To develop this strategy, employers must first understand what role AI will play within their organization and for what functions. Once identified, employers should assess if their teams, including their HR leaders, have the necessary skills to effectively integrate AI into their daily work.
With the introduction of AI often comes the challenge of potential job reduction—but employers can minimize talent loss by conducting a thorough evaluation of employee capabilities and needed roles to determine which employees might need reskilling into a new role versus upskilling in their current role.
Finally, one of the biggest challenges leaders must address to drive workforce readiness for AI is implementing guidelines around transparent and ethical use. It’s essential for companies to instate a clear policy around how employees and leaders can use AI, what data the AI is trained on, potential privacy concerns, consequences for violating the policy and more.
Establishing guidelines for ethical use of AI also helps to mitigate the risk and build trust with employees and customers. Training programs can help employees understand how AI works and how it’s being used in their specific roles.
Ultimately, by demonstrating a genuine commitment to using AI ethically and responsibly, organizations can pave the way for a more positive and collaborative relationship with technology.
What steps should HR leaders—along with the rest of the C-Suite—follow to balance AI innovation and risk in their organizations?
To find the right balance between AI innovation and risk, company and HR leaders should follow a structured approach that emphasizes being ethical, transparent and accountable. It’s important to take the time to assess the risks carefully, set up solid data governance frameworks and keep communication channels open to address any concerns and build trust with your team.
Organizations that are most successful in effectively utilizing AI-driven analytics have defined data governance policies, use a centralized platform to store people data and arm HR teams with data skills by either upskilling or reskilling HR roles. By leveraging these three key components, companies can make the most of AI’s potential and build a future-proof, agile workforce that embraces innovation and conquers tomorrow’s challenges together.
