• Written by Muhammed Abdulla NC, CEO

A common objection to implementing AI in human resources is that it will be too complicated, but this concern is misplaced, as the real challenge lies in preparing the organisation's data and processes, not in the technology itself. In fact, having a clear AI checklist for human resources can make all the difference in ensuring a smooth and effective implementation.

Connected Data

The first step in preparing for human resources AI is to connect the relevant data sources, as this will determine what questions can be answered and what insights can be gained. Without connected data, the AI system will not be able to provide meaningful responses, and the implementation will be severely limited. For instance, a shift supervisor checks the maintenance log to ensure that all equipment is in working order, but without connected data, the AI system will not be able to provide real-time updates on equipment status.

Most people get wrong the idea that connecting data is a simple matter of plugging in a few systems, but in reality, it requires careful planning and coordination to ensure that all relevant data sources are integrated and compatible. This is particularly important in human resources, where data from various systems, such as payroll, benefits, and performance management, needs to be connected to provide a comprehensive view of the organisation.

Definitions and Agreements

Before implementing AI in human resources, it is essential to agree on definitions and terminology in writing, as this will ensure that everyone is on the same page and that the AI system is trained on consistent data. Without clear definitions, the AI system may produce inconsistent or inaccurate results, leading to confusion and mistrust. For example, the category manager compares two suppliers based on their performance metrics, but without a clear definition of what constitutes "good" performance, the comparison will be meaningless.

A clear and written agreement on definitions is crucial, as it will provide a foundation for the AI system to learn from and make decisions based on. This agreement should include definitions of key terms, such as employee engagement, turnover, and training effectiveness, as well as the metrics used to measure them.

Permissions and Access

Another critical step in preparing for human resources AI is to decide on permissions and access before anyone asks, as this will ensure that sensitive data is protected and that the AI system is only accessible to authorised personnel. Without clear permissions and access controls, the organisation may be exposed to data breaches or other security risks. For instance, the HR manager needs to ensure that only authorised personnel have access to employee personal data, such as salary information or performance reviews.

Most organisations get wrong the idea that permissions and access can be decided on an ad-hoc basis, but in reality, it requires careful planning and coordination to ensure that all personnel have the necessary access to perform their jobs while protecting sensitive data. This is particularly important in human resources, where sensitive data is often involved.

A First Question Worth Answering

A good starting point for human resources AI is to identify a first question worth answering, one that the organisation already waits on, such as "what is the current turnover rate" or "what are the most common reasons for employee absenteeism". Answering such a question can provide valuable insights and demonstrate the potential of the AI system. For example, the HR manager can use the AI system to analyse employee data and identify trends and patterns that can inform talent management decisions.

By starting with a question that the organisation already waits on, the AI system can provide immediate value and help build trust and credibility. This can also help to identify areas where the AI system can be improved and expanded to provide even more insights and support. To learn more about how AI can support human resources, visit our human resource page.

Limitations and Wrong Choices

While AI can be a powerful tool for human resources, it is not a panacea, and there are situations where it may not be the best choice. For instance, AI may not be suitable for highly sensitive or complex issues, such as employee disciplinary actions or labour disputes, where human judgement and empathy are essential. In such cases, it is better to rely on human expertise and experience rather than AI.

Additionally, AI may not be the best choice when the organisation lacks the necessary data or infrastructure to support it. In such cases, it may be better to focus on building the necessary foundations before implementing AI. If you are unsure about whether AI is right for your organisation, contact us to discuss your options and determine the best course of action.