AI tools reshape HR processes globally

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Sam Ip, a technology lawyer and partner at Osler, Hoskin & Harcourt LLP in Toronto, highlights the importance of using AI responsibly. He advises HR leaders to develop a framework for proper governance to balance the benefits of AI with its risks. “AI is just a tool.

A very efficient tool.

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But at the end of the day, the accountability needs to be the person who is using the tool, ensuring the checks and balances are in place,” Ip says. Carly Holm, the founder of Humani HR, a full-service human resources consultancy, has observed the pitfalls of using AI without careful consideration.

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She recalls a situation where a client’s HR department used AI to write their employee handbook, omitting a crucial harassment policy and opening the employer to liability. Holm advocates for using AI in low-risk tasks like writing job descriptions and creating chatbots for general advice, which can significantly reduce the workload on HR departments. Within six years of launching her business, Holm has expanded her team to nearly 40 employees across Canada and the U.S., doubling her client base, revenue, and staff year over year.

“HR has gotten very complex since I started my career 16 years ago. It’s not what it used to be,” Holm remarks.

Balancing AI benefits with human oversight

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As AI tools become more integrated into workplace management software, HR professionals can expect significant changes. These tools automate various tasks such as administration, payroll, employee benefits, and even resume screening, drastically reducing the time and effort required for these processes. Moreover, AI offers online interviewing services, job description writing, and predictive analytics that can signal if a star employee might be considering leaving the company.

Jodi Kovitz, CEO of the Human Resources Professional Association (HRPA) in Toronto, emphasizes the importance of upskilling in AI. “The future of work is coming,” she asserts. “And AI skills are going to be increasingly important, so how do we upskill and develop talent to be ready for this new landscape?”

AI’s potential to replace jobs globally presents an HR challenge, yet mastering AI skills can also lead to higher wages.

For instance, HR specialists with AI skills earn an average of US$35,000 more annually than their peers. Kovitz stresses that HR professionals don’t need to become software developers but should understand how AI works and how to utilize it effectively. She recommends HRPA’s new foundational AI course launching in October, which is designed to help HR professionals at any career stage grasp AI basics and beyond.

Holm remains optimistic about AI’s potential to improve HR processes but acknowledges that we are still in the early stages of this transformation. “I am hopeful that these AI tools for screening resumes, for instance, are going to get better and smarter,” she says. “But again, I think it’s still early days.”