The Short Answer

AI Is Already Changing HR

Needless to say, that the introduction of AI is not going to change the human resource profession is going to be wrong.

AI is already changing a lot of human resources functions roles and responsibilities.

Questions HR Leaders Must Ask

So, as a practitioner or as an company leader, what do we need to be aware of?

How is the future of human resource function going to be?

And what should we be prepared for?

The First Impact of AI: Day‑to‑Day Decisions

The first and the most important thing, or the low-hanging fruit that AI is doing, is taking away day-to-day decisions, and it is trying to get into the foray of decision, from a standpoint of day-to-day mundane tasks.

Mundane Decisions and Predictive Analytics

Simple or mundane tasks (decisions) like (even though not accurate) attrition rates, predictive analytics in terms of who is going to resign, who is going to be the right fit for a particular role, but eventually over a period of time, these accuracies will be improve.

Even if they don’t improve, we will start structuring our things to work the way AI states, we will start trusting these AI based decisions.

Even if that decision doesn’t match with our thought process, we will start trusting and running a system by that AI decision.

Which means AI will take away a lot of decisions which are required to be taken (today) by an HR practitioner.

AI will take away a lot of decisions which are required to be taken (today) by an HR practitioner

Who Gets Impacted First?

From a skill standpoint, people who are in HR operations activities are the first ones who are going to get impacted by AI, because not only AI, even HRMS is impacting operations.

Research suggests that about 5 to 10 percent cost reduction in HR manpower happens as a result of HRMS implementation.

Impact on Talent and Rewards

AI is then going to impact people who are responsible for talent management.

It’s definitely impacting talent acquisition, but it is not impacting head hunters.

It is not impacting those individuals who are involved in talent building, which means succession, which means training need identification, which means mentoring, which means coaching.

It is obviously trying to replace individuals from the composition and benefits.

Compensation and Benefits Under AI

Right after operations, compensation and benefits is going to get impacted, because that’s going to become totally AI driven.

And they are the ones who are at the maximum brunt of being replaced by computers.

So What Can Individuals Do?

So, as an individual, what is it that we can do?

The India Advantage: Time to Prepare

Fortunately, India is still catching up on AI, and we are far behind the AI curve in the Human Resources area.

Which means that as an HR practitioner, you have time to understand HR tech, because no matter what happens, every organisation will have to undergo an HR tech journey.

The HR Tech Transition Window

Even if AI is available in India, let’s say as of tomorrow, any organisation to be able to fully utilise the benefits of AI will have a journey of at least two to five years.

And that’s the time that if you are aware of HR tech, you will have the ability to reskill yourself and re-contribute to the organisation and become an indispensable part of the organisation.

The Imperative for HR Professionals

Therefore, it is imperative that each one of us needs to understand what HR Tech is.

Each one of us needs to see how HR Tech can impact my function, and we need to start working towards planning that.