Long before the boom in Gen AI tools, AI has been an integral part of HR practices. From verifying employee documents to processing expense reports or conducting employee trainings, AI simplifies our routine tasks and allows us to focus on strategic planning. Today, AI’s reach extends across every aspect of HR, from recruiting and onboarding to employee performance evaluation and workplace solutions.

Every day, new opportunities to make use of AI arise, and there are countless applications we haven’t even imagined yet. AI can be a valuable time-saver for data-led insights or repetitive tasks, freeing up headspace for HR professionals and company employees to focus on the bigger picture. Yet, with every new application, the need to maintain a human connection becomes more crucial. 

Although 94% of HR professionals in a recent survey by HR Technologies UK see technology as a solution to their challenges, a significant number of employees remain sceptical. Research by SurveyMonkey reveals that 54% of Brits are uncomfortable with AI in HR, with 39% not trusting AI-supported HR teams. This mistrust stems from a lack of understanding, highlighting the need for clear communication about AI’s role, benefits and limitations. 

Creating a strong employee experience 

If AI is applied in a considered and targeted way to improve the employee experience, it can potentially lead to a competitive advantage for businesses and stronger company growth. Especially in times of labour shortages, companies must establish a strong employee experience to win the battle for talent. Crucially, AI supports this by enabling more flexible work environments. In the UK, 40% of businesses have seen a significant rise in flexible working requests post-pandemic – and an estimated two million UK employees left their jobs in 2022 due to a lack of flexible working. Hybrid workplaces that integrate AI applications and automation allow employees to be more flexible and free-up precious time and headspace which they in turn can use on more strategic, customer-relevant work. 

Companies that listen to their employees’ needs and act on them are thus able to create an attractive work environment – the cornerstone for finding new talents, employee retention and the long-term success of any business. Satisfied employees not only contribute to a positive work environment but also enhance customer service, leading to better customer satisfaction and loyalty, ultimately boosting a company’s overall growth. 

When not to use AI 

Despite its benefits, AI is not always the answer. When AI is applied inappropriately, it can lead to negative employee experiences and cause more harm than good. But how do you know when AI helps, and when it hinders? The biggest risks arise when the human touch is lost and employees feel like they’re not being heard. Imagine receiving a false payslip but only being able to contact the HR department via a chatbot with automated responses. Situations like these underscore the importance of keeping a human in the loop for personal and sensitive issues. It’s crucial that AI supports rather than replaces the human aspects of HR. Even though most employees only have limited interactions with the HR department, these interactions are fundamental to employee trust. Negative experiences can result in talents leaving the company after a short amount of time. This, in turn, means higher costs to introduce new employees and a bad reputation for the company. 

Finding the right balance 

Using AI in HR has the potential to deliver a more positive employee experience and a competitive advantage for the company, but companies must use the technology responsibly. SPS advises firms worldwide on leveraging technology to enhance business processes and improve employee experiences. Our goal isn’t to replace human interaction but to enrich it, allowing our HR professionals to focus on what really matters – the people. In our experience, this kind of technological transformation is a major growth-driver, even in challenging times, such as the current economy and era of polycrisis. Whether you are at the start of implementing AI in HR or have already activated multiple AI applications in your daily tasks, it is crucial to first have an overview of all processes the HR department in your company is involved in. As soon as this is clear, you need to decide for each process where an AI application is beneficial while maintaining the right balance for an optimised employee experience. 

There is no risk of AI replacing HR professionals. This ever-changing technology is only an aide and assistant to human expertise. We can let the technology do the mundane tasks and number-crunching, so HR experts can navigate the very sensitive relationships, tasks and discussions that make this career so fascinating and its professionals so irreplaceable. 

The importance of choosing the right partner 

AI can enable businesses to innovate, but it also brings challenges in terms of data protection, quality control and capacity. To deal with these challenges, businesses need an AI solution that operates on a private cloud and applies encryption and authentication. It must also have the capability to check and assess the output, use feedback, adapt to demand and optimise resource allocation. 

In all this, it is essential to work with the right partner – a safe pair of hands that can cut through the noise in the market and has the knowledge and experience to apply technology in a business environment. It is important not to see AI necessarily as an isolated technology but to take a holistic view that also considers the human in the process. A good partner will bring in expertise in a number of areas, such as business process design and prompt engineering, and will be on top of existing and upcoming regulations such as the EU’s AI Act, which is designed to ensure data security, quality assurance and scalability. They will understand in which scenarios AI delivers the desired benefits and where other state-of-the-art automation technologies are more suitable. By concentrating on their core business and delegating AI process implementation to specialised partners, companies can speed up their digital transformation and achieve better results. 

Beyond AI: integration into business processes 

How businesses adopt AI technologies is not the only factor that determines their future success; it is also essential to consider how these technologies are integrated into business processes. A holistic approach that encompasses people, processes and technology is essential for maximising the benefits of AI. In many cases, it is not advisable to use the output of AI engines without checking it first, due to the sometimes poor state of the input data. Ultimately, it is the quality of data that determines the performance of your AI. 

Gen AI in particular only has a limited capacity for “human judgment”, which is why manual steps are always necessary. People are the most important asset of any business and will be the key enablers of AI integration. Employees need to have the right knowledge and skills to use AI to its full advantage. Therefore, businesses need to spend money on training and development programs that help fill the skills gap and get their workforce future-ready. At SPS, we believe this human-technology interaction is fundamental to success. By helping companies integrate AI into their HR processes, they can unlock the power of possibility and find new opportunities for growth.