It is no secret that artificial intelligence will become part of the HR function. In our 2023 HR trends, we predicted that algorithmic HR for recruiting, firing, and training employees would continue to rise and be implemented. The HR trends report also highlighted that 40% of HR functions in international companies have already implemented AI applications.
If artificial intelligence is properly utilized throughout the HR function, it can become a valuable tool for HR professionals:
What ChatGPT Can Do for HR Professionals
Eliminate repetitive tasks:
HR professionals often handle repetitive administrative tasks, such as answering common employee inquiries, scheduling interviews, or updating employee records. ChatGPT can handle routine inquiries by providing information to HR professionals and employees, allowing HR to focus on more strategic activities.
Accelerate talent search:
ChatGPT can help talent acquisition by screening and filtering candidate resumes or applications. It can analyze job descriptions and match them with relevant candidates, saving HR professionals time and effort. It can also help develop screening and interview questions.
Help reduce employee turnover:
ChatGPT can help identify potential causes of employee turnover by analyzing qualitative HR data such as exit interviews, employee surveys, or feedback. It can identify patterns, detect common themes, and highlight potential areas for improvement. This analysis can help HR professionals take proactive measures to solve problems, improve employee satisfaction, and reduce turnover.
Improve employee engagement:
ChatGPT can provide personalized responses to employee questions, offer guidance on company policies and benefits, and facilitate communication between HR and employees. ChatGPT can also assist in developing employee engagement initiatives, such as surveys or recognition programs.
Analyze qualitative HR data to identify trends and opportunities:
HR departments often collect qualitative data through employee feedback, performance reviews, or culture assessments. ChatGPT can analyze this data to identify trends, patterns, and potential opportunities for improvement. ChatGPT can provide HR professionals with valuable insights and enable data-driven decision-making by quickly processing and summarizing large amounts of data.
ChatGPT also offers HR multiple (potentially untapped) application opportunities involving recruiting, onboarding, training, HR chatbots, performance management, and compliance.
HR Work That ChatGPT Cannot Replace
Although ChatGPT and other HR AI applications can make HR professionals' lives easier, there are some things they cannot replace. Here are some examples:
Providing emotional support to employees. ChatGPT is great for taking over operational support. However, it can never replace the human touch or provide compassion. It also cannot provide emotional support or generate empathy.
Especially when there are issues to resolve between employees and colleagues or managers, or when helping employees maintain a healthy work-life balance.
Developing strategy and driving change. While AI-powered tools may help write (parts of) a strategy, it cannot create and implement strategy.
The same is true when driving change. ChatGPT can play a supporting role in organizational change, but change still needs to be implemented by a team of people.
Shaping organizational culture. HR is also important for shaping company culture and influencing leadership. Therefore, they are responsible for acclimating managers and employees to the culture, fostering a sense of ownership, and maintaining accountability at all levels of the company.
Various other activities will continue to be the responsibility of HR, such as managing the workforce ecosystem, redefining remote and hybrid work strategies, creating a purpose-driven organization, and reshaping workplace learning.
Knowledge, Context, and Format
Three factors determine what ChatGPT can and cannot do. They are: knowledge, context, and format. Although AI has a vast amount of knowledge at its disposal, it lacks contextual knowledge. Therefore, anything that requires a deep understanding of context (i.e., strategy and culture) is beyond AI's capabilities.
ChatGPT's Limitations and Risks for HR
Although ChatGPT is an impressive technology, the tool has its limitations. Some common limitations include:
ChatGPT limitations:
Limited data. Currently, ChatGPT's training data does not go beyond September 2021. This means it does not "know" what has happened since then; therefore, some prompts will not provide up-to-date results (or any results).
Seemingly correct wrong answers. This is also called the "hallucination" problem or overconfidence bias. This means ChatGPT will answer questions it does not know the answer to by providing information that is actually incorrect (while implying it is correct).
Biased answers. Like any other AI-powered tool, ChatGPT is only as good as the data it was trained on. If the data is biased, the chatbot may also produce the same kind of answers.
For example, current data is mainly in English and predominantly contains Western worldviews. This may lead to some cultural insensitivity and/or misunderstanding.
No sources. The tool does not provide references, footnotes, or links to answers, which makes it difficult to verify the information it provides. In some cases, ChatGPT has also provided fake sources.
ChatGPT risks:
Given these limitations, ChatGPT poses potential risks for HR:
Watch out for bias
If left unchecked, AI tools open the door to bias that can seep into various HR processes. This has happened with Amazon and, more recently, Workday, whose AI systems and screening tools allegedly disqualified Black, disabled, or over-40 applicants at disproportionate rates.
Information inaccuracies
Current training data is as of September 2021, which may result in old or outdated information.
Cybersecurity.
Employees are increasingly using ChatGPT secretly, which can pose significant risks to companies when confidential information is shared.
ChatGPT Ethics: How to Use ChatGPT Ethically in HR
Because of its importance, this topic deserves a deeper discussion. Now, let's introduce the basics of using ChatGPT (and all AI-powered tools) ethically in HR:
Make a plan
Decide what you want to use ChatGPT for and what you do not. Determine which tasks or activities can be handled by ChatGPT. We will share some examples across the employee lifecycle in the second part of this article.
Since the tool is still gradually improving, it may be wise to use it only for things that "cannot go wrong." It is recommended to take a wait-and-see approach for the remaining tasks and activities until more (and up-to-date) information is available.
Try the tool
Before integrating ChatGPT into various stages of the employee lifecycle, try it out first! Evaluate whether ChatGPT is valuable to your HR team and determine its applications and usage rules.
Do your due diligence. As mentioned above, ChatGPT may not provide you with the latest or accurate information. Do not take output at face value. Before incorporating anything into a process or task, fact-check and further research the accuracy of the results.
Do not share sensitive or personal information
ChatGPT is still in the experimental and development stage, which may mean the tool's security is not yet up to standard. For example, a recent ChatGPT glitch allowed users to view titles of other users' conversations.
Create a ChatGPT policy for employees
As mentioned earlier, employees are increasingly using ChatGPT. Secretly. To (try to) avoid this, you should create a "how to use ChatGPT safely" policy for employees. Some (large) companies have also developed their own GPTs. Others monitor information shared on AI platforms or introduce company-approved GPTs in the workplace. Other companies, such as Deloitte and JPMorgan Chase, simply ban its use.
Consult your IT and legal departments
Or work with external cybersecurity experts. This is uncharted territory, so seek advice from people who understand the risks and security protocols.
Key Takeaways
ChatGPT is a tool that can save time and improve efficiency for almost every white-collar worker (including HR professionals).
ChatGPT still has limitations, and its use is not without risks. Before integrating it into daily work, HR departments need to consider the ethical implications and make a plan for themselves and employees in the organization. |