HR departments are facing immense pressure to deliver the technological change needed for today’s dynamic workplace. AI offers a powerful tool to address these challenges, but only if implemented strategically and responsibly. 

Despite the promise of becoming a powerful ally for businesses, the reality of AI implementation can fall short without the right approach, with less than a quarter (24%) of employees feeling AI literate.  

AI in HR isn’t just about automating tasks or generating text. It’s about unlocking insights and amplifying human decision making. It can help leaders not only identify and proactively address areas of low engagement in the workforce but also craft personalised career development plans, advance solutions for retention challenges and optimise employee productivity. 

So, how can organisations leverage AI as a catalyst for HR transformation that drives wider organisational success? Ultimately, businesses need to achieve a foundation for success made up of 5 core areas:  

1. Build foundational AI knowledge 
2. Define your company’s vision and principles  
3. Assemble a cross-functional task force (incl. HR, CIO and legal) evaluating “should we” versus “can we”.  
4. Empower employee AI literacy through training  
5. Cultivate an ideas pipeline in collaboration with employees  

These areas can only be achieved with a holistic approach to AI. Here are some things organisations must consider to make that happen. 

Create a clear vision 

With the recent signing of the first international treaty on the use of AI, the UK has established a clearer framework for the country’s adoption of AI in the coming years. Businesses should do the same, asking themselves what they want to achieve with AI and what approach they should take to get there. Amidst the hype, we often witness leaders over-promising on AI’s potential for productivity and efficiency, without outlining the necessary approach for success. 

AI in HR should primarily focus on tasks that strengthen the human-in-the-loop decisions within the business. And for organisations to truly unlock AI innovation in the long-term, they must be deliberate with their vision – bringing together a focus on strategic investments. That means first understanding what the business wants to achieve with AI and identifying where it is needed most. It’s not just about managing a portfolio of tasks that can be augmented with AI, but also redefining the business process around those tasks. That is the difference between a 5% productivity improvement and 50%. 

To be successful, companies should align on a vision that explores the many different AI-powered opportunities. For instance, are you aiming to enhance efficiencies, boost employee retention, or increase career development opportunities for your teams? Understanding how AI can contribute to your goal is vital. Once that is done, the business is ready to start its journey. 

Embed data management processes and training 

The road to AI adoption holds immense potential for innovation. However, organisations must approach this journey with caution and prioritise robust data management and ethical considerations. As AI integrates into various company functions, it’s crucial to take proactive measures to minimise risks. 

Before adopting AI, organisations must carefully consider data appropriateness, implementation methods, and secure storage. Even top-tier AI requires a secure, unbiased, and transparent data foundation to function reliably. It requires a foundation of trust. Unreliable AI can significantly impact employee workflows and the services or products they provide. For instance, research shows that ChatGPT only generates correct code 65.2% of the time. Unchecked AI-generated code in production can lead to major outages and security issues. 

Data bias, where AI models reflect biases present in the training data, can lead to discriminatory or unfair outcomes. To mitigate this, organisations must actively work to identify and eliminate bias in their data. That means ensuring that those tasked internally with implementing AI (data science experts, for example) represent a high degree of diversity to be able to scrutinise results. In the case of partners, it’s important to also look for a demonstrated and assessed capability to do the same. 

Inputting proper data management processes is essential to avoid GDPR implications. Given the sensitive nature of HR data, businesses have a responsibility to ethically use and protect this information while ensuring compliance. Additionally, involving employees in discussions about data usage and AI implementation fosters transparency, trust, and a more human-centric approach. 

Employee training and guidance 

Implementing AI HR means nothing if its principles are not properly disseminated throughout the business. Businesses must ensure they empower employees to use AI responsibly and effectively.  

Since the release of the first GenAI tools on the market, many employees have been acquiring digital skills by experimenting with the tech outside the purview of their teams. The result of using this technology unchecked means that organisations cannot ensure that best practice is used to protect the business and its customers. While it is exciting that employees feel compelled to learn and apply AI in their organisations, BYOAI (Bring Your Own AI) can cause unintended consequences. 

Companies must invest in training programmes and accessible AI guidelines regardless of whether they create their own sophisticated AI tool or allow employees to use those already out there – like ChatGPT, Llama, or Gemini. For instance, employees that directly use large language models, need to understand how the data they input is used and how they can write prompts more effectively to get the most out of the model.  

Don’t just rely on the technology 

AI can be used to instigate incredible transformation, but even top-tier AI won’t be sustainable without deliberate planning and proper processes. Businesses mustn’t shy away from seeking out available expertise and tools on the market, involving their employees in the process from start to finish. Involving team members from the beginning is an essential part of keeping humans at the heart of AI implementation and achieving truly beneficial outcomes.