Opportunities and Challenges in the Digital Transformation of Human Resource Management.
As reported by DER STANDARD, AI tools are currently not used as frequently in HR departments as in other areas of business. There is a good reason for this: when it comes to people, decisions must meet certain legal requirements. For example, candidates must not be discriminated against based on their gender, ethnicity, age, or other protected characteristics. The same applies to personnel decisions regarding promotions, task assignments, employee evaluations, or the selection of employees in the event of downsizing. Data protection laws and other regulations also seem to slow down the advance of AI tools in the HR field.
In an international study, 43 percent of the 650 HR managers surveyed stated that they had not yet started any AI projects in their departments. However, this means that 57 percent of companies have already begun!
Advantages of AI in HR Management
In fact, there are numerous opportunities for the use of AI tools in HR management. For instance, they can help HR managers identify development potentials in employees and offer individual programs. In times of skilled labour shortages, retention management is essential. When employees feel that their development is being supported, it increases satisfaction and ties talent to the company.
A positive climate in the company motivates employees to see AI tools as an enrichment. It is particularly effective when AI enthusiasts within the team demonstrate the advantages and applications to their colleagues. Involving the works council in the development of AI tools also promotes acceptance and is usually necessary for legal reasons.
If companies want to remain competitive, there is no way around using AI in HR management in the long run. This is simply the next step in the digital transformation that has long since captured all areas of society.
“AI Literacy” is a key term we will hear often in the future. According to Article 4 of the AI Act, providers and operators of AI systems must ensure that their staff and other stakeholders are adequately knowledgeable about AI.
Eyes Open, Buying is Buying!
When purchasing an AI tool, a healthy skepticism towards the grand promises of the HR tech industry is advisable. Employers should ask exactly how the tool has been validated to ensure it does what it promises. AI systems are not household appliances whose functionality can be quickly determined. They are not miracle machines either and have their limits and legal risks.
When using AI, compliance with the relevant legal framework should be a matter of course for companies. Despite their complexity, the legal risks can be managed with the appropriate expertise. Contact us; we will be happy to accompany you on your journey into the future of work!