Demystifying AI for HR Professionals

The team at Paylocity are good friends and collaborators of ours at HPC.  We asked them to give you some insights into the different types of AI in the market and how they are applied.  Like Shari says, AI is more than ChatGPT.  In addition, Shari provides insights on how to evaluate AI tools for HR and how to get started with new technologies. Thank you Shari and Paylocity for your collaboration! 

Technology does more than merely simplify routine tasks and complex calculations.

From the static of the first commercial radio broadcasts of the 1920s to the screech of an AOL dial-up in the 1990s to today’s familiar ‘da-dum’ of Netflix, technological advances have fundamentally changed how we experience our world.

Sometimes, the rate of change can be frightening. Still, in the past century, when technology has been moving forward at such a blistering pace, human curiosity has always taken up the challenge of striving further into the realization of thought into technology integration possibilities.

Nowhere is this truer than in adopting Artificial Intelligence (AI). While it’s been behind the scenes for years, 2023’s introduction of ChatGPT thrust AI into the public spotlight and our daily lives. But with opportunity always comes innovation, which raises ethical responsibility issues. HR should be no exception.

Our challenge is to shape a future where technology and AI enhance human well-being. Let’s start by breaking down what AI is and how we use it.

What Is AI and What’s It Doing in HR?

There’s more to AI than ChatGPT.

Here are some definitions and examples of how AI is used every day in life and at work.

• Artificial Intelligence (AI): The science of building intelligent programs and machines to solve problems creatively. For example, a computer program designed to play chess or checkers.
• Machine Learning (ML): A subset of AI where systems learn to solve problems from experience without being explicitly programmed, like the recommendations on Netflix after learning about your viewing habits.
• Deep Learning (DL): It is a subset of ML that uses algorithms and a lot of information to discover intricate patterns in data by simulating the human brain. For example, how is it used in image recognition to find instances of cancer?
• Large Language Models: Advanced AI systems, purposively built to understand and generate human languages. These can be used for various things, like translation and summarization, and can generate text, so they are quite a powerful tool for natural language processing.
• Generative AI is a subcategory within LLM, where a new content type is generated, whether text or images, based on patterns learned from input data. While ChatGPT is one instance, another is automated customer response—chatbots.

It seems that most industries have started to integrate AI into their operations, if not already. Collaborative robots work with humans in manufacturing, and software helps retailers analyze in-store customer behavior. Employees might use AI to search the Internet or blur their backgrounds on video calls.

AI can elevate the role of HR in the following ways:

• Increasing time available for strategic work founded on deeper insights from data.
• Automating recruitment processes, such as a resume or application screening.
• Masking personally identifiable information or sort by keyword to reduce hiring bias.
• Enriching decision-making with people analytics, such as predicting turnover.
• Improving employee experience with digital tools like feedback loops, chatbots, virtual reality training, digital location walk-throughs
• Facilitating remote work with collaboration, employee monitoring, and training tools
• Personalizing learning and development recommendations
• Improving communications by use of sentiment analysis and generative AI to make the message more impactful
• Monitoring legal and compliance requirements.

It is important to note that none of these functions should run without human supervision. Anytime we use technology to help us manage people, we need to be very cautious and thoughtful.

What to Ask When Evaluating AI Tools for HR

Two of the top concerns for HR professionals considering the use of AI are bias and data privacy.

The Equal Employment Opportunity Commission (EEOC) enforces laws prohibiting workplace discrimination. In many cases, an employer is responsible for its use of AI in employment decision-making, even if the tools are designed or administered by a software vendor. In other words, it’s up to the individual employer to mitigate bias in hiring, promotions, and terminations regardless of the technology used in the process.

Employers must also protect employees’ personally identifiable information (PII). Laws like the California Consumer Privacy Act (CCPA) and Europe’s General Data Protection Regulation (GDRP) give guidelines for collecting and storing personal data. Furthermore, businesses using open-sourced software like the free version of ChatGPT should caution employees not to upload sensitive company information.

Choosing a technology partner who is laser-focused on the ethical use of data is imperative to achieve AI’s true benefits for employees and HR. Ask vendors these questions about their commitment to AI ethics:

• How are your AI systems held accountable by humans?
• How do you provide transparency to AI users?
• How do you maintain compliance with applicable laws and regulations?
• How do you stay current on AI technology and HR best practices?
• How do your AI systems help reduce potential bias?

Getting Started with AI in HR

If adapting to change is tough, helping an entire organization adapt to emerging technology can seem overwhelming. Use this framework to guide your company’s approach to using AI in HR.

1. Start small: Adopt generative AI for personal use at first. Try asking questions you know the answer to, so you can gauge how accurate it is. Then, get creative!
   
2. Conduct a market analysis: Identify and evaluate how AI is used in software solutions that make sense for your organization, like talent acquisition, workforce analytics, performance management, or employee engagement.
   
3. Understand the risks: Weigh the risks and benefits of implementing AI in HR for your company.
   
4. Plan: Map out how you’ll implement tools, assess data quality and availability, and monitor results.
   
5. Build a team: Leverage the expertise of others in the organization, such as IT and business continuity.
   
6. Train employees: Create a schedule to train employees on how to use the new technology.
   
7. Provide clarity: Communicate transparently about your AI use and how you’ll help employees develop skills to leverage it ethically.

What’s Next for HR Technology?

Everybody wants to know! Yet, what we can gather is that technology will not stand still.

More likely AI trends in HR and the future include increased use of predictive analytics, augmented employee experiences, AI-driven wellness programs, and tools to manage remote teams effectively.

This is our chance, HR professionals and business leaders alike, to handle with responsibility what it means to manage the workforce humanely in the world of the future.

About Shari Simpson

Shari Simpson stands at the forefront of human resources, blending 20 years of rich experience with cutting-edge educational credentials. With an MBA, MHRM, Certificate in E-commerce Management, and SHRM-SCP, she is pursuing a Doctor of Education in Leadership and Innovation from Purdue. In addition, as the host of the HR Mixtape podcast, Shari shares invaluable insights with industry experts and establishes herself as a thought leader in HR. She is a guest speaker at local and national conferences, interacting with industry leaders about elevating the HR, Payroll, and Business sectors. Other than this, Shari is an adoring mother of three sons—one a veteran and two currently serving in the US Navy—a devoted dog mom and a consistent reader. Add to that, for the past 25 years, she has been married to a fire department Battalion Chief, which helps deepen her perspective on service and commitment. https://www.linkedin.com/in/sharisimpson/

About Paylocity

As the award-winning, cloud-based HR and payroll software provider, Paylocity focuses on developing artificial intelligence to reduce friction in HR administration, improve communication effectiveness, engage employees, and increase productivity. Read our AI ethics statement.