Navigating AI: A Guide for HR Professionals
In the fast-paced world of Human Resources, staying ahead of technological advancements is crucial. According to a recent Glassdoor report, the usage of AI tools like ChatGPT has more than doubled in the workplace since its launch. Are you leveraging AI to streamline your work tasks? Have you considered doing so? If so, read on. There are significant advantages and potential risks you should be aware of.
What is AI?
Artificial intelligence (AI) is a broad term that encompasses a machine’s ability to perform tasks that typically require human intelligence, such as making predictions, providing recommendations, and making decisions. Generative AI models, for example, can create text, images, audio, and video in response to user prompts. ChatGPT is a type of generative AI known as a large language model, functioning similarly to the predictive text feature on your messaging app but at a much larger scale and with greater sophistication.
However, it’s important to note that AI is not truly intelligent. It lacks cognition and awareness. If you ask ChatGPT to give you a compliment, it will generate something nice to say, but it doesn’t actually mean it. AI cannot feel, perceive, or hold opinions. Therefore, AI should not replace human judgment.
The Legal Landscape
All employment laws still apply when using AI to assist in decision-making or actions. Hiring and promotional decisions made with AI must remain free of discrimination. AI used for providing and administering employee benefits must comply with the Employee Retirement Income Security Act (ERISA) for covered employers. Data analysis conducted with AI must adhere to the Health Insurance Portability and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health Act, and other relevant laws. Compliance obligations do not vanish with the introduction of AI.
As AI becomes more integrated into the workplace, expect more legislative and regulatory activity. For example, Illinois, Maryland, and New York City already regulate AI use in hiring.
Best Practices for Leveraging AI
If you decide to use AI for HR and compliance purposes, consider these best practices:
- Diligence in Selection and Testing: No AI tool is perfect, but some are more reliable than others. Consult with an attorney when vetting AI vendors and reviewing contracts.
- Privacy Standards: Maintain high privacy standards with all information exchanged with an AI tool.
- AI Usage Guidelines: Implement and enforce a policy or set of guidelines to ensure employees understand the appropriate use of AI at work.
- Human Oversight: Rely on human expertise to evaluate AI-generated content. Always fact-check information and monitor for discriminatory outcomes or unlawful practices.
- Alignment with Business Needs: Ensure any AI product aligns with and contributes to your business needs.
- Identify Pain Points: Keep actual pain points in mind when considering AI solutions. Survey employees about their work challenges and areas that might benefit from AI.
- Develop an AI Strategy: Outline your goals for using AI and how you’ll measure success. Regularly evaluate AI use against these goals.
- Transparency with Employees: Be open with employees about your AI intentions and monitor morale. Solicit feedback and appreciate their input to gain buy-in.
- Encourage Sharing: Create a safe environment for employees to share their experiences with AI, including what works and what doesn’t.
- Continuous Education: Plan for ongoing training and monitor AI advancements and legal developments.
Practices to Avoid
Certain practices can be detrimental to your organization. Avoid the following:
- Assuming Compliance: Don’t assume AI models or their outputs comply with federal and state laws. Always verify the accuracy of AI-generated resources.
- Trusting AI’s Sources: AI’s sources may not always be reliable or real. Double-check any laws, regulations, or court cases AI references.
- Relying on AI’s Authority: AI can sound authoritative even when incorrect. Maintain skepticism and verify its information.
- Employment Decisions: Avoid relying solely on AI for employment-related decisions. AI doesn’t provide a liability shield.
- Analyzing Sensitive Data: Don’t use AI to analyze employee data containing protected health or personally identifiable information.
- Creating Legal Documents: Avoid using generative AI for creating legal or legally required documents.
- Uploading Confidential Information: Never upload anything into an AI model that you wouldn’t want publicly shared.
- Replacing Human Expertise: Don’t replace human expertise with AI content. Human oversight is essential.
AI has the potential to transform HR practices, but it comes with significant responsibilities and risks. By understanding the limitations of AI, adhering to legal requirements, and following best practices, HR professionals can harness the power of AI while safeguarding their organizations. Remember, your business is more than just numbers—it’s about people and ensuring their success.