ARTIFICIAL INTELLIGENCE AND HR

SUBMITTED TO:
JUVERIA BAIG
SUBMITTED BY:
SYED HASSAN RAZA ZAIDI
NADIR ALTAF
BURHAN UDDIN
ARSALAN AWAN(FREE RIDER)

IoBM
 AI in HR

Contents
Executive Summary.................................................................05
AI signals an HR technology step change....06
Why AI is being used in HR...................07
An HR ‘moon shot’..........................08
How AI can be used in HR....................10
Attract: Enhancing candidate experience.......................11
Hire: Efficient and effective recruitment..........................12
Engage: Enhancing motivation.......................................13
Retain: Smarter compensation planning........................14
Develop: Personalized learning..........................................15
Grow: Career development............................................17
Serve: AI for 24/7 employee interaction.........................18
The benefits of AI in HR...................20
Return on investment.....................................................20
Benefits and outcome metrics........................................22
Time to results................................................................23
Five steps to getting started..............24
Step 1: Start with a business case......................................25
Step 2: Decide whether to buy or build...........................25
Step 3: Identify the skills you have and need.............26
Step 4: Implement MVP..................................................................................... 26
Step 5: Roll out enterprise-wise......................................................................... 27

Tips for successful AI adoption in HR......28

AI and wider societal considerations.......29
Net effect of AI on jobs...................................................29
Are chatbots taking jobs?...............................................29
AI creates higher value jobs...........................................29
AI, diversity, and bias.....................................................30
Use of historical information...........................................30
Build in fairness and ensure transparency......................30
Acknowledgements..............................................................33

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PROBLEM STATEMENT
In today era of global competition, where whole world is moving fast and adopting new technology in
order to save time and maximize the productivity. So if we think from the perspective of the HR and
thinking the point of unemployment rate which is increasing rapidly and the demand of the companies.
HR is dealing with the several issues to hire the employee which can meet the requirement of the
companies.
In the struggle of searching of the best talent and skill employees as they receive thousands of job
application. They have to choose the best talent in which they are facing plenty of issues. And in some
of recruitment was done on human bias. They had issue to find out which of the employee is serious
with the job so if they sent the employee for training there investment on employee should not be
wasted. In past days all the work were done manually which minimize the productivity of the employee
and they become less interested in the job. Above mention issue and struggle were faced by the
companies.
INTRODUCTION:
DEFINING AI
Artificial Intelligence is used by the company
Artificial intelligence is a technology that
to fulfill the task, it’s said that tool is trained allows computers to learn from and make or
to perform the tasks in the competition of the recommend actions based on previously
HR. It’s somehow different from the ordinary collected data. From HR’s perspective, AI is
software. It has three major properties which implemented in order to maximize the
efficiency.
are high speed computation, a huge amount of
the quantity day, and algorithms which makes
AI unique from other software.

AI performs high accuracy tasks and makes daily

tasks process faster with using the Algorithm
with fast computation services. AI technologies
offer significant opportunities to improve HR
functions such as self-service transactions,
recruiting and talent acquisition, payroll,
reporting, access policies and procedures. When
the organization combines their people, process,
and technology intelligently to deliver
transformation value at optimized cost. AI
performs the best functions of HR quite
effectively and easily.

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WHY AI IN HR? • DECISION-MAKING
In this modern-word, AI-technologies have become a
The rate-of-information being generated is quite-
necessity to effectively run business-operations and
high, therefore, analytical decisions are best. AI
produce client-solutions. Therefore, the essential
makes best conclusion out of large-chunk-of-
reasons for implementing AI in HR are as follows:
information and provides recommendation. AI
• TACKLE-ARISING-BUSINESS-CHALLENGES also offers the option for staff-voices to be heard
AI ensures HR-department helps organization and proceeded in actual-time.
produces new insights and solutions without
• EFFICIENT-USAGE-OF-HR-BUDGET
incurring high costs and increasing number of
AI helps HR shifts its funds to more important
employees. AI-solutions accomplish never-ending and complex problem solving, without any
challenges such as to align human-resource with decrease in levels of service for employees
the business-strategy and distribute finances who are facing regular HR queries. Thus, HR
accordingly savings can be re-infused in further AI
implementation, improve HR’s capability to
• HELP-BUILD-NEW-SKILLS tackle business problem, and provide
Businesses are constantly facing disruption. personalized experience to employees.
Therefore, in-order to tackle it, businesses are
required to grab the opportunities instantaneously,
and to perform the tasks in an agile-way in order
to beat the competition. Thus, skills should be
innovated with respect to the changing operating-
environment. AI-technology helps HR-department
to attain and build staff-skills in lockstep with
changing market-requirement.

• IMPROVEMENT-IN-EMPLOYMENT-
EXPERIENCE
New employed-people typically want a
personalized-experience rather than the
conventional-one. They demand information them
that are enough for them from the beginning to the
completion of the process. Now, employees can
get into the business from outside through sites
such as Glassdoor, which provides a better-
experience for the employees.
 The Business Case for AI in
HR

IMPLEMENTATION OF AI IN HR
AI can be implemented in HR across the whole talent-life-cycle including other tasks of HR. Usage of
AI at each channel of talent-life-cycle has been explained below:

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ATTRACT: (IMPROVE-EMPLOYEE-
EXPERIENCE)
At this point of the talent-life-cycle, the objective
is to gather great number of promising-applicants
possessing relevant KSAs for the open-position,
and to motivate them to apply for the good-match
job.

In this case, specialized-Chatbots are used to

attract the talent. Chatbots attract applicants by
offering them an opportunity to ask queries that
are replied to them using Natural-Language-
Processing. This technology provides an
organization’s overview to the applicants before
they apply, thus it saves the applicant’s time who
perform ample-research of companies and brand-
stature before applying. It also allows to use
skill-aligning-algorithms to match TDRs of job to
KSAs in an applicant’s CV and offer
recommendations on the basis of analysis.
HIRE: EFFECTIVE-AND-
SYSTEMATIC-RECRUITMENT
The recruiter’s job is full of urgency and
difficult, usually have to fill multiple roles
altogether. Therefore, screening of applicant’s
CV and holding an introductory interview which
is an important and time taking process
especially when the hiring volume is large can
be catered by AI technology. According to
(Hooda 5070), using AI can help enterprises
conduct video or audio interviews in performing
this task more efficiently without wastage of
time. Companies also use AI-based gamified
assessment which help eliminate “interview-
bias” and “Education-pedigree” in-born in the
process,

Deploying AI in recruitment allows

faster and more accurate hiring,
and a better candidate and
recruiter experience.
“If we were to read manually through the comments, we get in our engagement survey,
Instead we use technology to summarize feedback in a way that’s consumable and leads to
suggested actions.”
– Sadat Shami, Director Talent Development, IBM

ENGAGE: (IMPROVE-
MOTIVATION)
Manager-talent-alerts and engagement-
analysis are the essential uses of AI supporting
management’s efficiency. First line-managers
obtain notifications from talent-alert about
employees and make decisions on the basis of
information provided. For e.g. an employee on
the succession-planning-chart whose current
performance is up to the mark and is ready for
promotion then this will be communicated to
managers. Engagement-analysis analyze the
social media content including annual and pulse
surveys as well as social-media chatter. It can
analyze thousands of comments in few hours.
RETAIN: (APPROPRIATE-
COMPENSATION-PLAN)
Determination of sound compensation-plan
includes various factors such as skills market-
rate, skill-demand, and bonus decision for strong
performance. Thus, AI-based support can reduce
this long tiring job to few hours. The application
gathers information from bodies like Bureau
of Labor statistics as well as internal data on
aspects such as price to replace in order to
recommend compensation plan in few-time.
“With AI, we are able to see how learning relates to engagement without even having to ask our
employees for their perceptions. We have the answer and that gives us important feedback on
how effective our training is.”
– Gordon Fuller, Vice President & CLO, IBM

DEVELOP: SELF-LEARNING-AND-
BUILD SKILL
In-order to improve the productivity of
employees and build skills Learning and
Development programs are required to be
conducted. AI helps customize L&D and
provides personalized-experience. According to
(Wislow 5071), with the adoption of AI, HR
needs to design only quality L&D programs
based on changing-trends, new-expertise etc.
with individual employee priority and has to
make it available online. This saves HR team’s
time in conducting and organizing training
sessions for the staff physically.
 The Business Case for AI in
HR

GROW: CAREER-GROWTH
Coaching is believed to create great work
experience and leads to higher productivity and
powerful succession planning chart for
businesses. Since, coaching is an expensive tool,
therefore, software’s like “Mobile-Coach” helps
employees in determining their needs and
develops customized L&D program for the staff.
AI software assesses the work requirements for
the staff and provides assistance in their career-
path.

SERVE: CONSTANT-STAFF-
INTERACTION
A Chatbot is an AI-technology which acknowledges
natural-language and communicate with users like-
humans. Chatbots reduce the hiring cost of a
representative in order to cater the questions of
employees. Chatbots enable employees’ access
essential information about enterprise policies and
process from anywhere and at any time. Chatbot based
FAQs should be implemented if employees raise a-lot
of questions.
CHALLENGES FOR AI:
IBM’s experiences of AI deployment in HR enable us to draw insights that could support any organization on their own AI
adoption journey. These can best be summarized as the five steps to getting started, as shown in Figure 4.

Figure 4. Five steps to getting started with AI in HR

1 2 3 4 5
Limited TouchConcern Of Reliab.Focus Of Bias Talent Gap Privacy Concern
LIMITED HUMAN TOUCH
Candidates who have searched for a job in past
few years told that they usually prefer human
interaction through the course of their job hunt.
While, chatbots taking over the task, those people
might feel a deficiency of human touch and may
prefer to terminate the following process
prematurely. They are not fully capable of
understanding human lingo and emotions. Hence
these characteristics altogether may impact the
candidate’s experience in a negative manner.
RELIABILITY CONCERN
A large portion of the AI-based recruiting tools
are still in their early stages. They are still under
the process of learning and may experiencing
various irregularities and defects. The available
data is usually not enough all the time. They need
a plenty of information to perceive designs and
determine ends. Since, social recruitment is a new
trend, Artificial intelligence may begin to judge
individuals on the basis of their digital activities
and social-media interactions.
EXAMPLE:
A candidate screening framework may reject an
individual profile simply on the basis that the
person doesn't meet the specific prerequisites as
referenced in the JD. He may have selected an
alternate text style in the resume, or the scanner
couldn't peruse it appropriately. An unordinary
page direction, configuration, or picture
arrangement may get a ton of individuals
dismissed, regardless of whether they would
agree upon ideal decisions for the job position.
FACTOR OF BIAS
Artificial Intelligence was expected to reduce the
bias factor related to name, gender, age,
nationality etc. in the recruitment process, but it
seems it may have introduced bias factor in the
system itself. The reason behind this was the
analyzing patterns of AI recruiting tools.
Moreover, when a company’s last five years
recruitment data is feed in the AI- powered tool,
learn from the database. The AI tool randomly
picks up pattern which was earlier present but it
hasn’t been excluded yet by the algorithm.
EXAMPLE:
During the recruitment in Amazon
headquarter. The company was trying AI-
recruitment tool to shortlist candidates
automatically for few unfilled positions. The
team found-out that tool was being biased
against female candidates. The reason was past
10 years data which was fed in to the system
that had a specific pattern of sub-conscious or
unconscious bias behavior against females.
Although, the algorithm had no idea that this
factor was supposed to be ignored.
PRIVACY CONCERN
Organizations HR data is at risk here. Since the
confidential HR data is to be accessed securely
and only by the organization’s authorized
individual. Hence HR and team are assigned a
crucial role in creating a culture of security and
privacy by design across the whole employment
journey
 RECOMMENDATION

AI has been viewed most

CONCLUSION
favorably when managers have
In larger corporations many employees can
the option to override the AI
feel lost and unengaged by their employers
recommendations.
and HR department. Anything from vacation
requests not being approved to unenforced
policies can be the tipping point for most
employees which results in high turnover
rates. A good pay does not make an employee
happy. Most people feel their jobs are their
lives.
Several services and programs offered could
lack different aspects one might be
accustomed to in manual the non-AI world,
such as the ability to leave feedback to a
candidate after a video interview, or specific
CV search criteria. AI technology lacks is
empathy and human interaction or the
opportunity to handpick a candidate and get to
know them personally during the recruitment
process which simply cannot be done at this
time while relying on AI technology to do all
the work for your company.
HR people need clear understanding of how
decisions are being made to mitigate
unknowingly injecting bias into their
programs. This transparency will be essential
in making sure that employees trust the new
technology
AI technology is only going to keep growing
and at some point, in the future AI will be the
norm and the old-fashioned ways of recruiting
will seem like the stone ages.
.
.