Why AI can never replace the H in HR

Here’s a pill that many will find tough to swallow: AI is going to transform your industry. The broad application of the technology is pointing to a new digital revolution, and if you’re not seriously considering how to integrate AI, you will fall behind.

The great news is that the possibilities of AI are endless. The tools that will emerge in the future will unlock vastly improved ways of working and provide benefits that we can hardly imagine right now.

A wrinkle for companies to consider is these technological advancements are happening as workplace engagement is dropping for the first time in a decade. One of the driving forces behind this decrease is a lack of human interaction in workplaces — a problem that AI cannot solve.

Thoughtful HR practices and policies are emerging as pivotal as companies prepare for an AI-driven landscape. Here are three reasons why centering on human connection and relationships will help organizations find success in the tech-driven future.

Human connection improves engagement metrics

As companies continue to navigate the aftereffects of the COVID pandemic, one of the emerging trends has been extending remote work options. However, while pausing any return to office gives people what they are asking for, it also complicates the work of HR teams.

As the dropping engagement numbers prove, human connection is an important ingredient in company cultures. Bringing people together has been shown to improve vital workplace metrics like efficiency, engagement, proactivity, retention and referrals.

As companies bring in more AI-based tools, that human interaction will become even more important. Consider an employee, working from home that only engages with AI-driven bots when they have work-related questions or a concern about benefits.

Business leaders need to consider what they lose when adopting a fully digitized workplace. The human touch is critical for building company cultures, tearing down silos and driving engagement.

Technology can provide new tools and solutions

Investing in AI is not new. Businesses have been adopting AI and machine learning to benefit customers for several years now, with tools like fraud prevention, personalized shopping and autonomous vehicle guidance.

For HR leaders, tools like chatbots, virtual assistants and trainers are already augmenting the everyday work of professionals. A world where an employee could Slack the company HRIS and receive answers would eliminate a lot of busy work.

However, AI development is moving fast — too fast, even, for many tech trailblazers. This is in part because the technology is democratized and smart companies are always looking for competitive advantages.

As powerful AI tools like ChatGPT continue to improve, questions about how to ethically use them multiply. Along with the reality of putting people out of jobs, the impact on HR’s ability to connect with people is significant — especially when algorithm-driven smart responses are virtually indistinguishable from conversation.

Right now, HR professionals still see AI as a toy. But AI can be a tool for organizing, identifying patterns and getting people to insights more quickly. Every department of a company can — and should — prepare for the benefits of tech-driven disruption.

Bringing AI and HR together intentionally

We have reached an inflection point with AI, and there are boundless possibilities for development within HR — just not in replacing the human element. The solutions leaders need to find will center on how technology can eliminate work in a way that empowers HR professionals to be more intentional.

But, it’s more than just a nice-to-have: SaaS companies without an AI strategy will soon find themselves far behind the curve. As the technology around AI continues to sprint forward, smart business leaders must find ways to use the emerging, collaborative tools to help boost creativity and drive greater achievement.

At BambooHR, we created our first AI function three years ago, to help us turn our centralized data warehouse into actionable insights. Now, we are developing projects with code collaboration, creating new channels with mass personalization and launching smarter solutions. These successes help us and our customers intentionally focus on what matters most: people.

Right now, AI helps HR find efficiencies, address simple requests, answer questions that reference company policies and quickly power through other administrative tasks. But the real energy and urgency behind the technology, and the future we are working toward, is that when AI comes together with HR the right way, companies will be able to drive engagement and build stronger company cultures.

Introducing new technology will further benefit every department of an organization, provided the outcome is not removing the human connection. Especially in categories like HR, where that personal contact will become more important than ever.

Related: Is AI an intelligent way to make employment decisions?

Companies can ensure they are advancing the right way by carefully watching their engagement metrics, being deliberate about the technology they pursue and ensuring the “human” part of human resources is strong.

Brian Crofts, chief product officer at BambooHR