Authors: Edward F Barry Rebecca Starr
If you responded "yes" to any of these questions, grab a coffee and read on for the first in a series about AI and HR.
We're Rebecca Starr, national managing director of Gallagher's Human Resources Consulting practice, and Ed Barry, national managing director of Gallagher's HR Technology Consulting practice. The changes around HR tech — associated explicitly with AI — increasingly bring the two of us together to advise employer clients. Our combined perspectives offer unique value because we represent different generations and different sides of the industry. While we typically agree, we also learn from each other. With that in mind, we decided to share our conversations with a broader audience.
We talk to employers daily and know there is a lot of trepidation around using AI in HR, but also fear of missing out — that everyone else is ahead in the game. We're here to allay your fears and offer clear, direct information and guidance.
What is — and isn't — artificial intelligence?
AI imitates human behavior. It relies on algorithms and an immense amount of data (currently leveraging between 860 million and 1.56 trillion parameter data points to respond to queries, depending on the model).
Many confuse hyper-automation and machine learning with true AI, which is what generative AI such as ChatGPT is all about. Hyper-automation uses workflows to automate manual tasks to save time. Machine learning bases its output on patterns within a training data set, which gets us closer to real AI — think of it as the kindergarten of AI.
You already use some form of AI at work but may not recognize it
Do you log in to your computer using a facial scan? Do you use a chatbot to get information about your benefits? Both are examples of machine learning, but we know they're not the ones that worry you, so let's move on.
Generative AI creates the biggest buzz and risk
You've probably heard horror stories about AI, including the lawyer sanctioned for using ChatGPT to identify case law to support a defense, only to learn that ChatGPT made up the cases. Whereas machine learning identifies patterns within a training data set and makes predictions or decisions, generative AI creates new content based on vast quantities of data and machine learning algorithms. With generative AI, a poorly constructed query will produce equally poor outcomes — "garbage in, garbage out."
You're not as far behind as you might think
A December 2023 Gallagher poll shows that while AI use varies by application, only 11% of organizations responding use AI in HR. Further, fewer than 25% are considering it.1 Most organizations report "not considering" using AI in their HR operation. Expect this use to change.
AI is coming to HR, like it or not
Similar to the early days of information technology, younger generations will expect AI in hiring and other HR processes. Soon, the absence of AI in your talent attraction efforts will cause some candidates to look elsewhere for a more progressive organization. Your value within the organization and the job market will substantially increase if you understand the risks associated with AI and when and how to use it effectively and safely in your job. We'll cover this topic in our next article.
Why you should embrace AI more than fear it
Some HR professionals worry that AI will replace them. In a future conversation, we'll do a deeper dive into why the "human" in human resources is irreplaceable. But until then, remember: It's not AI that will take your job — the HR professional who knows how to use AI better than you will take it.
AI's use in HR will increase
CHROs share their AI experience
Our collective experience — from the people and the tech sides — reveals that most employers are happy to sit on the sidelines to watch what happens. Not surprisingly, tech companies are among the early adopters of AI in HR, but we see AI use in every industry.
According to the Gallagher poll, the top applications of AI within HR include creating emails, recruiting and writing job descriptions. Less common uses include performance reviews, onboarding, engagement, talent development and sentiment analysis. The AI adoption rate is increasing, so the same poll six months from now likely will reveal a different picture.
To recap, HR professionals are inundated with news about AI in HR — specifically ChatGPT — creating stress. AI represents one more thing on HR's plate, and professionals have little capacity to understand the quickly advancing technology. Yet, with some experimentation and learning, AI could free up time, allowing you and your team to focus on the important human aspects of human resources.
Be aware of AI misuse in resumés
Our perspectives
We want to wrap up this first piece in our series with our thoughts about AI tech tools, and AI and people.
Ed's view on the AI tech market
HR tech service providers have promoted AI for years. While most tools rely on AI-like hyper-automation and machine learning, the market will be quick to incorporate advancements; AI is a big market differentiator.
Some words of caution: The fine print on your contract likely will place liability for using the tool on you — the user. We'll get into the risk in our next conversation, but be mindful of using AI-enabled tools with real data until you understand their use and evolving regulations. Once a tool learns information you shared, there is no taking it back. And, it may use the information in ways you did not intend.
Rebecca's view on AI and the human being
One of my favorite applications of AI is sentiment analysis. Many companies use AI to assess consumer opinions about a product or brand. HR can use it to assess employees' feelings about your organization or a specific service, such as benefits. Among other outcomes, sentiment analysis enables a deeper understanding of your employees and culture. This analysis allows HR to respond proactively to negative comments and concerns before they snowball into bigger problems.
Our next AI and HR topic
We'll explore the basic risks associated with AI in HR and look at some low-risk ways to experiment with and become comfortable using AI.
Talk to us
Contact us with your experiences, observations, questions or concerns. We may not respond to every message personally, but we'll try to address your comments in a future conversation without identifying you.
If we can help you match HR technology tools to your enterprise needs, let us know. We would be happy to schedule a conversation at your convenience.
Recommended resources
For a deeper dive into some of the areas we covered, take a look at these resources:
- Generative AI: How It Works, History, and Pros and Cons
- ChatGPT Glossary: 42 AI Terms That Everyone Should Know
The following are a few AI tools garnering market attention:
