Assignment no.

1
Course Name: HRM - Human Resources Management
Course Code: SPM6003A
Faculty In Charge: Dr. Dhanashree Tharkude
SPECIALIZATIO
NAME ROLL NO. PRN NO.
N
Akanksha
21MBA150 1062212072 DUAL
Kulkarni
Mrunal Vasal 21MBA171 1062212238 DUAL

Akash Gaikwad 21MBA182 1062212106 DUAL

Sakshi Rathod 21MBA175 1062212239 DUAL

Sanket Ganore DUAL

Subodh Kamble 21MBA084 1062211826 DUAL

Priyanka
21MBA192 DUAL
Parmar
 ASSIGNMENT 01: CHALLENGES OF ARTIFICIAL INTELLIGENCE AND
HR FUNCTIONS

Artificial intelligence (AI) has been changing our lives for decades, but today its
presence is bigger than ever before. Sometimes, we don’t even realize it when a
new AI-powered system, tool, or product appears and outperforms us, humans. In
fact, AI is affecting human life on all kinds of levels varying from:

The automation of tedious, time-consuming tasks to;

The augmentation of human capabilities and;

The amplification of human functions.

The benefits of AI and automation for HR and the workforce don’t come
instantly, however. It’s a journey and one can see the short-term benefits of this journey
in automation, the medium-term benefits in augmentation and finally the long-term
benefits in the amplification of human activities tasks.
Let’s take a look at the various effects of AI and automation on HR and the workforce
in more detail. First, let’s find out what history was saying and how this shift towards
AI and automation has been going on for a long time.
After that, we’ll explore how we can adopt this new technology and what the basic
strategies are to move forward as an organization while turning potential threats into
opportunities.

AI and Automation in HR: Impact and Current State

AI is everywhere today, and there are many aspects to consider as to how it will impact
the future of work.

“It’s now popping into almost every piece of software,” said Josh Bersin, principal and
founder of Bersin by Deloitte. Based on research by Bersin by Deloitte, nearly 40% of
companies are using some form of AI in HR alone.

According to Personnel Today, 38% of enterprises are already using AI in their

workplace with 62% expecting to start using it as early as this year. According to Bersin
by Deloitte, 33% of employees expect that their jobs will become augmented by AI in
the near future.

Artificial intelligence is present in virtually every major industry from healthcare to

advertising, transportation, finance, legal, education, and now also inside our
workplaces.

We are already increasingly using chatbots and virtual assistants in our personal lives
and now we can expect to use them in the workplace as well. For example, to assist us
in finding new jobs, answer FAQs, or receive coaching and mentoring. The use of
artificial intelligence in organizations could help us to create a more seamless, more
flexible, and more user-driven employee experience.

Whether you are aware of it or not, AI has an immense impact on our daily (working)
lives already. For most of us, AI technology is helping us do our jobs more efficiently
and it’s generally making our lives – and jobs – easier.

As such, AI plays a big role today in transforming HR and the workforce; reducing
human bias, increasing efficiency in candidate assessment, improving relationships with
employees, improving compliance, increasing adoption of metrics, and improving
workplace learning are some of the benefits organizations are experiencing today.

Jeanne Meister stated in her article, “The Future of Work: The Intersection of Artificial
Intelligence and Human Resources“, how HR leaders will need to begin experimenting
with all facets of AI to deliver value to their organizations. According to her, HR
leaders are beginning to pilot AI to deliver greater value to the organization by using,
for example, chatbots for recruiting, employee services, employee development, and
coaching.

When it comes to AI in HR, “The applications of AI basically are analytics

applications, where the software is using history and algorithms and data to be smarter
and smarter over time,” as per Bersin. The most interesting part of people analytics is
the interface between AI and human proficiency.

On the other hand, their automation analysis found significant variations among various
sectors of the economy and among the occupations within those sectors. Taking into
account the technical, economic and social factors affecting the pace and extent of
automation, McKinsey estimated that up to 30% of current work activities could be
displaced by 2030.

This AI-enhanced productivity is starting to threaten white-collar jobs as well. And it’s
going to impact most of the common professions like lawyers, HR, teachers, traders,
sales, marketing, researchers, accountants, software developers, etc.

Expectations vs. Reality

So, will AI and automation go and automate our jobs?

Most of our daily jobs are associated with tasks like paperwork, scheduling, timesheets,
accounting, expenses etc. (as shown below with an average percentage). Of course, it
is useful to outsource these repetitive tasks to digital assistants or automated software,
freeing up more time for deep thinking and creativity.
When it comes to the cognitive technologies that leverage AI that are currently
available in the market, their main impact so far has been to augment existing job
functions, not to eliminate workers. The machines or systems that can reason, learn, and
interact naturally with people will likely continue to eliminate repetitive tasks, help the
workforce to do their jobs better and faster, and free up time for more interesting tasks.

For most workforces, cognitive technologies will likely enable them to move into new
and more rewarding roles. Therefore, most organizations and their employees are likely
to experience positive effects from the AI-based technology and automation.

Adoption and Strategy

It becomes pretty clear from all these analyses that occupations involving (a lot of)
physical work in predictable environments – including production workers and building
and grounds cleaners – as well as office support roles like clerks and administrative
assistants, are likely to face a significant impact on their activities as a result of AI and
automation. Doctors and professionals like engineers and business specialists, on the
other hand, are less likely to experience as much of an impact.

The World Economic Forum report, “The Future of Jobs”, looks at the employment,
skills and workforce strategy for the future. The writers of the report asked chief human
resources officers and strategy officers from leading global employers what the current
shift means, specifically for employment, skills, and recruitment across industries and
geographies.
They found that the current developments in AI and automation will transform the way
we live and the way we work. Some jobs will disappear, others will grow and jobs that
don’t even exist today will become commonplace. What’s certain is that the future
workforce will need to align its skillset to keep up the pace.

According to Laetitia Vitaud, a researcher on the Future of Work & Consumption, most
of the HR divisions or departments of our modern corporates have become process-
driven ‘machines’ that manage people like assets, rather than unique human beings that
require personalized attention.

Instead, HR departments run top-down process-engineered ‘systems’ — to recruit large

lumps of resources, handle payroll, organize annual appraisals, send simultaneous
batches of employees to training, etc. — that leave little room for personalization,
flexibility, and creativity.

In her publication, “Can AI Put the ‘Human’ Back into Human Resources?”, Laetitia
explains that what many HR professionals fail to understand is how AI provides a
unique opportunity to redefine HR and give it increased relevance.

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