Intelligent software is not artificial intelligence
Just a few years ago, our HR technology consultants frequently talked to clients about the artificial intelligence (AI) hype in HR technology marketing. At tradeshows, nearly every new solution claimed to have some AI component. AI was hot, and everyone wanted it, pushing service providers to label new intelligent software as AI when it was not. Instead, such software involved basic — not generative — machine learning, natural language processing (NLP), algorithms, decision trees and regression analyses. Each of these would better have been labeled "smart technology."
That said, these smart technologies are the precursor and the building blocks of today's generative AI. Our general warning to beware of the hype is still relevant advice. AI has changed how we work, providing new and exciting opportunities and risks for HR applications. However, HR professionals must understand the technology, including its limitations and the human role, before deciding whether and how to incorporate it into HR functions. Read additional insights on the use of AI in HR.
AI applications in HR: From recruitment and hiring — and beyond
Consider the use of AI in recruitment and hiring — one of the earliest and best applications of AI in HR. Tools exist that not only read resumes but also recommend whom to interview and hire — all without human intervention.
In our view, hiring an individual without human involvement would be inappropriate. However, many related functions lend themselves well to AI — including writing job descriptions and postings to reflect a desired tone, facilitating interview scheduling, providing summaries and analyses of recorded interviews, and more. HR managers need training to understand how to effectively use these tools to inform their thinking, not to replace their thinking. Human involvement remains critical to the success of HR.
There's no end in sight to the integration of AI into the HR arena, and HR professionals must determine its appropriate use. Without a doubt, the technology will continue to improve rapidly. Consider that ChatGPT garnered 100 million users within five days of launch in November 2022 — compared to Instagram, which took 2.5 months, Facebook, 10 months, and Twitter, two years to reach a similar level.*
The various models of AI will evolve to work together, taking the applications to a higher level and mitigating the risk. This could mean using AI to determine the consequences of various actions in real-world situations, ultimately taking humans out of the decision-making process. But we're not there yet. HR leaders must recognize marketing hype, but not discount the value AI brings to many HR solutions, and prepare to explore and experiment with AI.
Make technology your "how," not your "what"
If you struggle to make sense of the hype around AI innovations in the HR technology market, remember that technology is a "how," not a "what." First, determine what you're trying to accomplish before considering how technology can help you achieve that goal. We applied this rule to sourcing HR technology long before AI was on the scene. AI doesn't change the rule, but instead reinforces it. (For a more in-depth look at defining the "what," read our article, Don't Fall Under the Spell of the "Bright Shiny Ball".)
Gallagher's HR and Benefits Technology practice consists of expert consultants who can guide you through the process of identifying your requirements and assessing options available in the HR technology market — including AI-driven solutions. We also can help you understand the associated risk and how to manage it.
This comprehensive consulting approach ensures the best possible service provider fit. Contact your Gallagher representative and ask how we can help you enhance organizational wellbeing with better HR technology that supports your people strategy.
