How Will AI Impact The HR Industry In 2019

Posted on 06-24-2019 in HR.com

Do you remember in your childhood when people asked you questions like: “What do you want to be in the future?” Children, in general, don’t answer that question with “a robot”. But the next big displacing technology is artificial intelligence (AI), which will confront us with a lingering question – will it replace or supplement our workforce?

In any advanced economy, as in the United States, half of the jobs can and likely will be automated. But does that mean you and your colleagues are becoming extinct? Not at all.

As the HR Director of the world’s largest privately held AI-company, IPsoft, here are some insights for HR leaders contemplating the potential impact on their own workforces:

 Certain Tasks Are Disappearing and Jobs Are Changing

Part of our work will be automated and existing work as we see it today will be transformed. Professions with standardized data gathering will shift, digital coworkers will help accountants in mundane tasks. This does not mean that robots will replace us but instead replace millions of routine and menial tasks like any computer does for us today. The modern evolution of work can be traced back to the second industrial revolution, when machines bolstered the human workforce, through the information age, where automation created efficiencies, and now the enterprise is entering yet another paradigm shift in how we work with the introduction of intellectual work. Yet, HR departments are lagging in evolving and adopting the tools, namely AI, to keep pace. According to a recent Deloitte report, only 31 percent of respondents said they feel ready to leverage AI in their businesses. It is imperative that we, as HR leaders, honestly confront the way our roles are changing and rethink how we can utilize the tools available to keep pace with our evolving businesses.

HR’s Role Is Evolving

Human Resources should think about how to reskill the workforce for an AI-driven future. HR should identify and drive learning needs. Many organizations have already seen a transformation happening in IT and customer service. One area that’s seen strong adoption of the technology is in contact centers, a field notorious for burnout. According to The US Contact Center Decision-Makers’ Guide 2017, last year over a third of US-based contact centers had an over 30 percent employee attrition rate. Human employees have a lower call volume, with the help of technology, allowing them to spend more time on customers with specific and often more uncommon issues where they can provide real value and assistance. This, in turn, increases employee satisfaction and reduces stress. To successfully implement any transformational technology, it will require that HR upgrade their own skill sets and understand how AI benefits the business and the employees. The best practice is to pick a business problem in one unit, such as onboarding, and pilot a solution. This way, new employees get used to the technology and the HR-department will get instant feedback. 

Skill Transitions Impact Wages and Incomes

The skill transitions are quite substantial and one impact of all of this on incomes and wages. There is no denying that the rhetoric around job replacement and wage-loss due to automation and the introduction of AI elicits a lot of fear, especially at a time when those most affected by economic trends are less inclined to view any corrective measure with confidence. However, this narrative fails to reflect the reality: automation is about inclusion and serving the many rather than simply enriching the few.

 As we are moving towards this unprecedented change, HR needs to ensure that all are on board. HR departments have an essential part to play in training humans to work alongside machines. HR needs to help organizations transform the future world of work, to provide the best employee experience. And the shift requires action today as The World Economic Forum predicts: "current estimates would suggest a decline of 0.98 million jobs and a gain of 1.74 million jobs." The replacement that should be discussed is that of low-productivity roles with that of higher-productivity, leading to higher incomes and living standards.

 As technology continues to revolutionize the workforce, it is incumbent on HR leaders to embrace and adopt the latest technologies that position themselves and the employees of their business to thrive in this new age. Because a more efficient and engaged workforce is better for both the business and the employee.