Artificial Intelligence (AI) is helping transform industries at a remarkable rate. But is this a transformation which you should be worried about?

How much will AI impact Human Resources (HR)? Does this enhance HR functions, or does this put jobs at risk and raise ethical issues in hiring?

AI is no longer a SCI-FI concept, but a reality in our current day practices. From predicting employee turnovers to automating recruitment practices. It is revolutionising the way we as HR professionals operate. Should businesses welcome AI with open arms or be wary of its impacts? Let’s take a closer look at both perspectives.

How is AI Already Transforming HR in Today’s World?

Automated Recruitment & Candidate Screening

AI-driven hiring tools are getting more popular and overtaking the recruitment process, enabling businesses to screen thousands of applications in minutes. Algorithms can analyse CVs, rank candidates based on suitability and even conduct initial video interviews using Natural Language Processing (NLP). This reduces administrative workload, however it raises concerns about whether AI can fairly assess candidates without unconscious bias.

AI in Performance Management & HR Analytics

Traditional performance reviews often rely on subjective assessments, but AI can provide real-time feedback based on data-driven insights. From tracking productivity patterns to suggesting personalised career development plans, AI has the potential to enhance performance management in ways previously unimaginable.

Related Article: ‘The Future of HR: What 2024 Taught Us and What’s Next for 2025’

What Are The Potential Threats of AI in HR?

1. Job Displacement – Will AI Replace HR Professionals?

While AI can handle boring, repetitive administrative tasks, it cannot take over the human touch that is vital in HR. Workplace culture & employee relations can’t be recreated by AI as it requires emotional intelligence and human judgment. However, very repetitive roles that rely massively on routine data processing could potentially be replaced.

2. Ethical Concerns & Bias in AI

AI uses & learns based on historical data. This means it can inherit a bias based on previous hiring decisions. Recruitment tools that are AI-driven could unintentionally discriminate against certain characteristics based on ethnicity, gender or even socioeconomic background. It is still crucial to go over hiring processing tools to ensure fairness and transparency in AI-driven HR processes to avoid unintentional reinforcing of biases.

Related Article: How To Ensure You Have An Inclusive Working Environment

3. Data Privacy & Security Risks

HR departments handle vast amounts of sensitive employee data and AI systems rely on this information to function effectively. The increased use of AI raises concerns about data security, GDPR compliance and the ethical use of personal information. Business leaders must implement robust data protection measures to maintain trust.

So Will AI Completely Replace HR? 

No, HR is about people, not just processes. While AI does enhance the efficiency of certain tasks such as analysing data or providing insights. The things it lacks are human intuition, empathy and ethical judgment which are required for real workplace dynamics. HR isn’t just about decisions based on numbers; it’s fostering a positive culture and ensuring fairness. 

AI is a tool, not a replacement. That can take the support of businesses and take them to the next level. If used with care, AI can aid businesses and HR departments with tasks such as creating better employee experiences and making better, more informed workforce decisions. Implementing AI with a strong focus on data security and human ethics is important.

It is key to striking the right balance between AI and tasks that should be kept within the realm of human-to-human interaction. The future of HR lies in Human-AI partnership, where it aids professionals in making more informed and people-centred decisions.

For professional insights or any questions/concerns about using AI within your business. Reach out to Coppice HR by emailing Paul at paul@coppicehr.com or calling 07814 008478.