The rise of artificial intelligence (AI) in our organisations is placing the burden on HR leaders to understand current and future skills needs in areas that are developing more rapidly than anything we’ve experienced before. The potential that data-driven insights and intelligent automation could bring to our work is nothing short of breathtaking. But the yawning skills gap in data and AI threatens to leave many businesses stranded on the digital highway.

We can’t hire our way out of this; there aren’t enough data scientists and AI-skilled people to go round. That puts the onus on HR leaders to work out how to cultivate a workforce equipped to navigate the ever-evolving landscape of data and AI, where every department – from marketing to finance to operations – wants their share of the AI magic.

The Data Deluge and the AI Alchemy

Businesses are awash with data; every click, swipe, purchase and action generates a digital footprint, leaving us with a treasure trove of information just waiting to be uncovered and used. According to the UK Government, 81% of businesses report that they collect data but only 26% of businesses are currently using data to generate insights. Data, like any raw material, needs refinement before it yields its true value. This is where AI steps in, acting as the alchemist, transforming data into actionable insights and enabling us to predict, personalise and automate like never before.

However, the alchemy of AI requires skilled hands. We need data wranglers to tame the data deluge, data analysts to decipher its hidden patterns and AI engineers to build and deploy the intelligent systems that unlock its potential. But these are merely the tip of the iceberg. Every department needs individuals who can speak the language of data, who can translate insights into actionable strategies, and who can champion a data-driven culture within their teams.

Building the Data-Savvy Workforce

So, how do we bridge the skills gap and equip our workforce for the AI revolution? First off, there’s no point joining the war for talent as you’ll simply be sucked into the spiral of ever-increasing wages throwing your pay scales out of kilter, not to mention the chaos constant poaching makes of your attempts to control attrition.

A more reasoned approach will look at:

• Upskilling and Reskilling: Our existing employees possess valuable domain knowledge and experience. Let’s invest in training programmes that move them up from simply working on spreadsheets and equip them with the fundamentals of data analysis, AI literacy and basic coding skills. This not only empowers them to contribute to the data-driven future, but also boosts morale and engagement for people concerned about being left behind in the AI-enabled world.
• Targeted Talent Acquisition: Look beyond traditional job descriptions and focus on skills like critical thinking, problem-solving and analytical aptitude. Consider internal talent pools and diverse candidates with transferable skills from other fields like statistics, social sciences or even creative disciplines.
• Building a Culture of Data: Foster a data-driven environment where data is viewed as a valuable asset, not a burden. Encourage open communication and collaboration across departments, allowing everyone to contribute to data-driven decision-making.
• Embrace Continuous Learning: The data and AI landscape is constantly evolving. Invest in ongoing learning opportunities, such as workshops, conferences and online courses, to keep your workforce engaged with the latest trends and technologies.

The Challenges and the Rewards

Building a data-savvy workforce isn’t without its hurdles. Cultural resistance, budget constraints and the sheer pace of technological change will all pose obstacles. However, the rewards are undeniable. Organisations that use data effectively gain insights that help them make more informed strategic decisions and improve operational efficiency. In an ongoing tight labour market, for example, being able to find new insights that optimise resource allocation is a major plus.

Whether it’s increased customer satisfaction through hyper-personalisation of interactions, or gaining competitive advantage over competitors through spotting innovations earlier, in our data-driven world, those who can harness the power of data and AI have a significant edge.

The Future: Data-Driven and Human-Centred

The role of HR in the age of AI is not about replacing humans with machines. It’s about amplifying human capabilities through data and technology so you build a workforce that can propel your business into the future of AI and data-driven decision-making.

HR leaders must be proactive and innovative in their approaches. By understanding the skills gap, sourcing the right talent, fostering a conducive environment for growth and learning and embracing diversity, you can help your organisation to stay ahead in the AI-driven world.

I know it’s not December, but a recent e-newsletter got me thinking about the exciting opportunities that technology is going to offer HR leaders in 2024.

The newsletter from LinkedIn trailed “Recruiter 2024”, their amped up service which will include generative AI tools to make it easier to create hiring projects and surface potential candidates. Many other HR service and software providers are bolting on tech solutions that they say will generate efficiencies, reduce repetitive and mundane tasks and free up your team members for higher value work. Whilst these tools are useful, they bring problems too. So how can we get the best from technology whilst avoiding mistakes that could be career-limiting?

One example from Hilton Hotels shows the complexity. They have over 400,000 team members globally so efficiency in talent acquisition is important as they seek to source people who fit well in their culture of great customer service whilst also controlling costs. Over recent years they’ve tried AI-powered tools like HireVue’s video interview screening and Pymetrics neuroscience-based games. HireVue ran into trouble in 2020 when it was revealed that its algorithm, which was supposed to assign certain traits and qualities to job applicants’ facial expressions, was based on flawed science. HireVue changed its offering and continues to dominate the video interview market, although many candidates don’t like feeling judged by technology.

Question Your Tech

For HR leaders, there’s a clear lesson that it’s vital to ask probing questions of third-party suppliers when you are considering procuring AI tools. You need to understand:

• how the algorithms work
• what features are they using to make their prediction
• what data has the model been trained on and how does that relate to your data
• how has bias been mitigated
• how accurate will the predictions be in your particular domain
• how you will explain the results to candidates and employees.

You will need to be transparent about how you are using AI. In the UK and EU, the General Data Protection Regulations give people the right to opt out of automated decision-making, so you must let them know what you are using AI for, and give them an alternative route if they decide not to use the AI-driven part of the process.

One way to have more insight into the AI tools you’re using is to develop them in-house, which is what tech titan IBM has done. They proactively use their Watson AI platform to source applicants who match key success profiles. Using AI to predict who could be a good candidate, by finding patterns hidden to human recruiters, has enabled IBM to recruit more inclusively and increase diversity across its talent pool.

IBMers then extended their AI use to personalise Employee Value Propositions (EVPs), using data on the individual employee’s career path, preferences and performance. The result is tailored training programmes, career development plans and benefits packages. Rather than humans facing the daunting task of trying to create individual plans, the HR team members focus their attention on the higher value tasks of understanding the technology and the insights it produces. Similarly, Accenture’s AI-driven MyLearning platform recommends training and development opportunities for employees, increasing their engagement and skills development.

If you’re not a tech titan, developing your own tools can seem like a daunting task so take specialist advice so you can plan for successfully building your data science and AI team.

Authentic EVPs

We know that EVPs need to be authentic so the way you engage in AI ethics and governance should fuse your organisation’s purpose and values (including taking into account wellbeing and your diversity, equity and inclusion agenda).

We’re all working hard to improve diversity and equity in our hiring, but as we increasingly rely on tech tools and platforms, we need to be aware that we may be excluding people who are not on these platforms or who struggle to use the tools. For example, many assume that all young people will be equally capable of taking part in a video interview or online skills or personality testing. I know from my own experience of being CEO of a grant-making foundation, however, that not all young people are digital natives. Some struggle to use technology through language, reading or physical difficulties. Others simply don’t have the money to have always-on data so they spend a lot less time on mobile phones and other devices than we might imagine.

Use Without Expertise

I predict that 2024 will be the year that many HR leaders start using more AI tools without realising it, which will mean that some make mistakes through lack of expertise. You wouldn’t get in a car and start driving without putting your seatbelt on and having some understanding of the rules of the road, so don’t fall into the trap of using the exciting new tools from LinkedIn, or anyone else, until you’ve looked under the hood and satisfied yourself that you know what you’re doing.

While this offers exciting possibilities, it also brings apprehensions, particularly among employees who are concerned about the potential impact on their jobs. As HR leaders, it is your responsibility to guide and support your workforce through these changes as well as figure out how to evolve your own skills.

Helping employees navigate change

There’s no denying that AI will impact people’s jobs. In the US, the advent of the spreadsheet over time removed 400,000 accounting and book-keeping jobs, but 600,000 new jobs were created too. It’s important to acknowledge people’s concerns about AI and provide clear, honest communication. If your organisation has an AI strategy, HR can help dispel fears and mitigate resistance to change. It’s essential to convey that AI is not about replacing humans, but rather about augmenting our capabilities and freeing people from routine tasks so they can focus on more other aspects of their roles.

There are many roles where our uniquely human skills are vital and AI won’t be replacing the human touch any time soon. We know that cash machines revolutionised the banking industry and when they were introduced bank employees and customers were concerned that the automation would lead to the end of banks having a human face. Whilst some banks are now fully online, with little or no opportunity for customers to talk to a person, others have realised the importance of maintaining a human presence and have embedded their friendly accessibility as a unique selling point.

For years you’ve probably been promoting a culture of lifelong learning. It’s time to put new energy into this, encouraging employees to embrace upskilling and reskilling initiatives. The AI era doesn’t mean that jobs will simply disappear; rather, it means that the nature of jobs will evolve. For example, if someone’s job currently involves lots of manual data entry, or spending time manipulating data in spreadsheets, that’s the sort of role that will be automated away by AI. Good advice to a person in that sort of role would be to take opportunities to build more advanced data analysis and data science skills; in doing so they will evolve their career and gain skills that are in short supply.

Do your senior leadership have the skills to spot opportunities to use AI and are they wise to the pitfalls the AI use can bring? If not, I urge HR leaders to call out this knowledge gap and encourage colleagues to invest in their skills, after all, if you don’t put the spotlight on the paucity of AI skills at the top of your organisation, who will?

It’s not just about leadership skills. All employees benefit from learning about machine learning and data analysis. You should be offering training programmes and workshops that equip them with the skills required to work effectively alongside AI. Don’t just limit these to technical skills. Non-technical skills such as critical thinking, creativity, emotional intelligence and problem-solving will be just as important in an AI-driven workplace.

HR leaders should also work towards developing a growth mindset in their employees to help people see the changes brought by AI as opportunities for growth rather than threats to their job security.

New skills for HR Leaders

As for HR leaders themselves, several skills will be critical in navigating the AI era.

1. Digital Literacy: you need to understand the basics of AI and related technologies so you can make informed decisions about how to integrate them into the workplace. There is already a plethora of AI-powered tools you can use in all aspects of HR so you need enough knowledge to be able to evaluate which are best for your organisation.
2. Strategic Decision-Making: As AI reshapes the business landscape, HR leaders will need to make strategic decisions about talent management, training, and organisational structures.
3. Data-Driven Insights: With AI and machine learning, there is a wealth of data available that can be used to inform HR practices. HR leaders need to be confident to use data analytics to derive actionable insights.
4. Change Management: With the introduction of AI, organisations will inevitably face changes in processes and workflows. HR leaders must be adept at managing change to ensure a smooth transition.
5. Ethical Leadership: The use of AI brings up many ethical considerations, from privacy concerns to issues of fairness and bias. Leaders need to make many ethical choices about how they use AI and data and HR leaders are well placed to ensure the interests of wide stakeholders are considered in discussions.

As HR leaders, it is your role to reassure and guide your employees through the changes brought about by AI. By fostering a culture of learning and investing in your own skills, you can help your organisation navigate this exciting new era with confidence and resilience. Remember, AI is as much an opportunity for growth and innovation as it is a threat to the status quo. Embrace it and help your employees to do the same.

Fundamentally all artificial intelligence tools do two things: they find patterns hidden in large amounts of data and then use those patterns to predict, personalise or automate. They are already being used in all aspects of HR, from automating repetitive hiring tasks like CV screening to providing performance insights for line managers and personalising training to improve employees’ experiences.

Figure 1 – AI tools are being used in all aspects of HR

Why we might start to love AI

A survey of 259 HR leaders at US companies with 100+ employees found most were already using AI. The majority planned to increase its use in the year ahead, not surprising as it can help us increase efficiency and cut costs.

Unilever, for example, uses AI to screen job candidates for its graduate programme, with results showing time and cost savings whilst the quality of its hires has improved.

I have supported a client in the logistics sector to use AI to make the workplace safer. Using computer vision they can detect where employees are not following the correct safety procedures so supervisors can take action to improve safe ways of working. This level of monitoring would never have been possible without technology.

Companies are increasingly using sentiment analysis, a type of AI, to produce real-time reports on how positive or negative employees are feeling towards the business. One large business has stopped using the blunt instrument of an annual staff survey as they now have 24/7 insights from analysis of their internal communications channels.

This sort of data, coupled with other performance data, can be used to personalise the employee experience by creating bespoke learning plans, providing real-time feedback and connecting employees with the resources they need. For line managers these insights are invaluable, enabling them to focus their attention on employees most at risk of leaving or in need of support.

But on the other hand…

Fear of AI taking our jobs is frequently cited by people at all levels in HR teams and it’s a genuine threat. It’s likely that many HR roles will change dramatically over the next five years and there will be job losses. I would argue that’s a reason to be in the vanguard of using these tools rather than hoping they will not affect you or your team.

Without knowing how to use AI well, and with very little regulation for now, mistakes are being made which can impact on businesses and people’s lives. In 2022, three former Estée Lauder employees received out of court settlements after they claimed they were not adequately informed about how HireVue’s computer vision technology was used to select them for redundancy.

We’ve also seen Amazon publicly embarrassed by trying to use AI to make hiring decisions only to find that the data used to build the model was biased.

Our ability to collect and analyse vast amounts of data about employees can lead to difficult ethical decisions. We can track employees and predict their future behaviour through monitoring how they spend their time, what they do on social media and even analysing their friends and family. But should we? Or does this cross the line between employee privacy and surveillance?

The London School of Economics found AI was better at hiring than humans as it was faster, increased the fill-rate and recommended candidates with a greater likelihood of being hired. Job candidates, however, were overwhelmingly negative towards AI hiring and they viewed organisations using it as less attractive than those hiring through humans.

Another study tested AI’s ability to analyse employees’ work and generate feedback.  AI identified more errors and made more recommendations to correct mistakes and improve skills compared to human managers. Employees who received AI-generated feedback achieved 13% higher job performance but only when they thought the feedback had come from a human. When employees were told the feedback came from an AI tool they achieved 5% lower job performance.

Conclusion

It’s no surprise that many HR leaders are unsure whether, or when, to ramp up their use of AI tools. But AI is getting into all aspects of our work so whether we love it or hate it, we need to learn to live with it.

Often the best combination is for AI tools to provide insights and for humans to provide the interface with job candidates or employees. HR leaders have the opportunity to lead this change so my advice is:

• educate yourself on what your data really means
• find out how AI works and how to harness its power in your organisation
• combine the best aspects of technology with uniquely human skills.

Sue Turner is one of our panelists on the AI webinar which is on Tuesday 9^th May at 11am.

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