The truth about AI and job loss in HR

Published: 26 September 2024 | by Michael F. Hissey, senior product marketing executive at Brightmine

Artificial intelligence (AI) technology continues to advance at an unprecedented rate. In this time of rapid transformation, a common concern among HR professionals is the impact of AI on job loss. In the field of Human Resources (HR), where administrative tasks are abundant, AI has emerged as a productivity-driving game changer.

Despite this, many HR professionals are wary of advanced technologies, believing they will be replaced by AI systems. This article aims to shed light on the truth about AI and job loss in HR, emphasising how it can revolutionise traditional practices while empowering HR teams to focus on more strategic functions. 

By the numbers

AI technology has been increasingly used to automate repetitive and time-consuming HR tasks, such as resume screening, candidate sourcing and employee onboarding. According to a survey by PwC, 52% of business leaders believe that automation will significantly impact the workforce in the next five years. This does not mean that AI will replace human actors.

In fact, that same survey has indicated that business leaders are focused on the “responsible adoption” of AI. They aren’t looking to fire entire departments to replace workers with chatbots and machine learning. Rather, they want to adopt AI into their employees’ workflows in ways that make them more efficient, improving the overall quality of work and smoothness of business operations. By eliminating administrative tasks, AI can help HR professionals focus on strategic work.

How AI is enhancing HR

The following are key ways in which AI is enhancing the HR function:

1. Augmenting HR roles

AI is an assistant, not a replacement. Generative AI tools support HR professionals by automating repetitive tasks, such as compensation analysis and policy research. This enables them to focus on high-value strategic work.

In the same vein, AI-powered tools streamline administrative tasks like resume screening, scheduling interviews and leave management. In doing so, AI frees up time for HR teams to concentrate on building relationships and providing personalised support to employees. With the help of AI, HR can shift focus from the mundane to enhancing the employee experience.

With AI, HR professionals will spend less time creating routine documents. Generative AI algorithms can create job descriptions, routine communications and more. HR professionals can also use generative AI to improve their own content.

2. Leveraging AI for data-driven decision-making

AI tools can analyse vast amounts of data quickly, providing HR professionals with valuable insights in record time. With AI-powered people analytics, leaders can evaluate practices, monitor interventions and identify trends in their workforce.

AI can also help HR teams make objective and fair decisions by minimising human biases that often influence key people decisions. For example, AI-powered applicant tracking systems can review and evaluate resumes, a process often marred by unconscious bias.

Finally, AI can help HR forecast for the future. Predictive analytics leverages historical data to forecast future trends related to workforce planning, talent acquisition, employee performance and more.

3. Enhancing candidate and employee experience

AI has enhanced the candidate and employee experience in many ways. First, it can improve candidate sourcing and screening processes. Specifically, AI tools can efficiently analyse candidate profiles and match them with job requirements, leading to faster and more accurate candidate selections.

It can also provide tailored career advice by evaluating current employee skills, capabilities and interests. This can help HR leaders understand their internal talent pool and future talent needs.

Lastly, AI can enable HR professionals to gain a deeper understanding of employees’ needs and preferences. With the help of AI’s data analysis, HR teams can tailor experiences to boost employee engagement and satisfaction.

4. Nurturing human connections

You may have heard it before: AI is making HR more human. Indeed, HR’s role is evolving as a result of AI tools. As AI takes over routine tasks, HR professionals are spending more time building genuine relationships with employees. This includes providing guidance, support and empathetic interactions that contribute to a positive company culture.

And, with this shift towards human connection, HR professionals can prioritise skills that AI tools can’t replicate. Soft skills, such as emotional intelligence and leadership skills, will propel HR into a new, more human-centric era.

5. Continuous learning

AI is supercharging learning and development (L&D) programs for HR teams. Generative AI, in particular, empowers HR teams to create engaging, targeted learning content for their employees. By enhancing HR’s capabilities and skills, AI can improve learning and reduce L&D overhead.

Upskilling HR for the future

With so many new AI tools in the HR space, HR professionals must continue their own learning. To effectively and safely use AI, HR must prioritise upskilling to stay ahead in an AI-driven work environment. Leaders and practitioners should learn about AI technologies, data analytics and ethical and responsible use of AI in HR.

The impact of Gen AI on specialised roles

Much of the fear surrounding AI comes from its ability to make tasks that used to require significant brain power, time and attention (such as research, analysis and writing) more routine.

Individuals in all professions fear that this means they can be automated out of their roles — while we’ve established above that this is not the case, we should take time to consider why this is particularly untrue of highly specialised roles.

Internal counsel (lawyers)

It is next to impossible, given the structure of our legal system and the pace at which laws change across jurisdictions, for AI to “automate out” the role of internal counsel. Internal counsel play the most important roles in ensuring that companies remain in compliance. It’s a function that cannot be left to chance or delegated to a technology which, while streamlined, often produces incomplete outcomes.

AI focuses on improving efficiency, expanding their bandwidth for work. However, these tools require human oversight — particularly when they’re assisting with legal work. The responsibilities of in-house counsel might change, but the need for them will not.

HR management

Many worry that AI will replace HR managers, specifically. In reality, HR is simply evolving into a more strategic function. With the help of AI, HR teams can focus on fostering a human-centered approach that prioritizes strategic initiatives.
AI provides support for this more strategic approach by taking mundane, transactional and remedial tasks off of HR leaders’ laps, so that they can focus more on what matters. That is, driving business growth through improving the employee experience.

Conclusion

AI is certainly transforming HR, and its potential impact on HR professionals is immense. However, early trends are showing that AI-enabled teams still require what AI cannot create: a human touch.

In that spirit, HR professionals should see AI tools as collaborators that amplify them rather than as competitors. By leveraging AI’s power to automate routine tasks, make data-driven decisions, and enhance candidate and employee experiences, HR professionals can thrive in the evolving workplace. Embracing AI technology and continually developing new skills will empower HR teams to advance and transform their roles — not put them out of them.