HR approach for 2024: As AI takes over, human touch remains essential

According to Forbes, AI expenditure in India is expected to reach almost Rs 9,800 crore by 2025 and is expected to contribute at least Rs 3,750 crore to the GDP by 2025. Representational Image

Human resources departments are bracing for a revolutionary shift in 2024 as artificial intelligence plays an increasingly dominant role in hiring.

While promises of streamlined efficiency and enhanced objectivity are enticing, HR professionals are aware of the ethical challenges that accompany the use of AI in recruitment. One of the foremost concerns is the potential for algorithmic bias. AI algorithms are trained on historical data and there is a risk of perpetuating the biases and discrimination of past hiring decisions.

However, AI undoubtedly helps in candidate outreach, significantly enhancing efficiency and scale. In a recent pilot project at information technology company Birlasoft, AI tools processed about 9,000 resumes and connected with potential candidates, all within three hours.

“AI, particularly chatbots, play a crucial role in candidate outreach, interview scheduling, and other repeatable tasks, saving approximately 30-35 percent of a recruiter's time. Additionally, AI ensures accurate data storage, mitigating traceability concerns in candidate interactions,” Arunava Bhattacharjee, global head of talent supply chain at Birlasoft, told Moneycontrol.

To solve the key challenges of upskilling HR professionals for ethical technology utilisation and ensuring transparent AI algorithms for fair hiring, Birlasoft is providing its more than 12,500 employees unlimited access to specialised online courses on emerging technologies and industry domains.

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Training for AI future

As AI automates certain tasks, HR professionals say they and the workforce in general must adapt and upskill. Learning to interpret AI data, manage algorithmic bias, and design human-centred AI-powered processes will be crucial. Investing in continuous training for HR teams will be essential to navigate this evolving landscape.

“....staying abreast of the swiftly evolving tech landscape poses a challenge, considering the rapid pace of change in the technology sector. It is widely acknowledged that technology will play a pivotal role in shaping the future, and organisations failing to keep pace with these advancements, including platforms like ChatGPT and other AI tools, risk falling behind in delivering optimal stakeholder experiences,” said Sushil Baveja, CHRO of Jindal Stainless.

Jindal Stainless has implemented advanced tools across departments such as sourcing, finance, and sales, resulting in more efficient and expedited processes.

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According to Baveja, preparing a workforce to navigate the uncertainties of the future is no small task.

“Organisations are now seeking individuals comfortable with tackling complexities and adept at dealing with abstract concepts,” he said.
HR professionals are investing time and resources in AI literacy to comprehend the intricacies of the algorithms they employ. The challenge lies in fostering a workforce capable of interpreting, questioning, and improving AI technologies rather than being entirely dependent on them.

This demands a new set of skills for HR professionals, who must navigate the evolving landscape and ensure that AI aligns with ethical hiring standards.

Experts suggest HR leaders should use AI for career management. With rapidly changing business and employee needs, traditional career maps no longer fulfil business requirements or employee expectations, said Ruchika Sharma, head of human resources at global recruitment firm Michael Page.

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“Most of the employees don’t know how to progress their careers over the next five years. The solution is designing iterative careers that facilitate career growth by aligning business needs with employees – larger goals, interests and skills,” she said, adding that career planning will enhance the trust levels of employees and better engagement, more importantly their lens of considering a long-term tenure with their organisations.

Human touch

While AI excels at sifting through vast volumes of resumes, there's no substitute for human intuition and rapport-building in hiring, HR professionals said. Candidates deserve a sense of connection and interaction during the process, not just cold algorithmic assessments. HR needs to strike a balance between AI's efficiency and maintaining a human-centric approach, incorporating personal interviews and skills tests alongside AI-powered screening.

“The biggest challenge actually is over-reliance on AI when it comes to hiring. AI should be used to generate insights, discern patterns and provide lead indicators into the hiring process – which can then be used to drive good judgement,” said Amit Chincholikar, CHRO of Yokohama India.
It’s like flying a plane – the aircraft has all the relevant AI tools, yet you need a good pilot to exercise sound judgement, he added.

In the post-pandemic world, where investment in HR technology has risen at mammoth speed, justifying it is hard. The HR tech market size was valued at $23.32 billion in 2021 and is projected to reach $38.36 billion by 2030, according to Verified Market Research. India is a key market for the industry.

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While technology promises efficiency gains, convincing stakeholders of its tangible impact on productivity and employee satisfaction is challenging. The challenge lies in articulating how HR tech aligns with organisational goals, enhances employee experiences, and ultimately contributes to long-term success in a rapidly changing business landscape.

“The principle holds that the greater the investment, the more profound the business impact over time. However, the primary challenge remains in justifying these investments, a process that takes time,” said Jaikrishna B, group CHRO of the Amara Raja Group.