The Impact of AI on HR: Insights from Leaders

Aug 3, 2024

AI is transforming various aspects of HR. As such a new tool, HR leaders are often split on how they feel about HR and may be unsure the best ways to implement it. According to a report from Workday, while 39% of HR respondents are excited to use AI, 33% are not. To explore how AI can assist HR teams, we gathered insights from prominent HR leaders across industries.

In this blog, we’ll share their perspectives on AI’s impact on HR professionals and highlight the areas where a human touch remains essential.

3 HR Leaders Weigh In on AI in HR

Tamara Gordon, former Head of Global Total Rewards Programs & Process at PVH Corp works, sees the value of AI in supporting HR leaders in their administrative tasks. She notes, “I think AI can really support the organization from a communications perspective as well as other redundant tasks.”

For example, AI could help support HR leaders with…

  • Data analytics: Track enrollment progress, highlight areas needing additional support, and generate reports to help HR make informed decisions. 
  • Automated reminders and follow-ups: Help keep employees on track with enrollment deadlines and other time-sensitive HR initiatives. 
  • Enhanced employee communications: AI-driven platforms can segment the workforce and send personalized messages tailored to different groups, ensuring relevant information reaches each employee.

Incorporating AI into HR processes not only alleviates the burden of administrative tasks for HR teams, but also enhances overall efficiency and employee engagement. By leveraging AI, HR leaders can create a more streamlined and effective benefits administration process, with the ultimate goal of a more informed and engaged workforce.

Livia Freudl Global Head of HR & SVP HR, Varian, also offers a unique perspective on the ways AI can help support HR leaders ensure that their employee population is as supported as possible. She says, “I think AI can perfectly help to support employees and use the offered benefits best to their individual situation. My experience is that most people don’t make use of the benefits offered as the information is overwhelming and hard to maneuver through.”

Navigating the available benefits can be overwhelming for HR leaders and their employee population as well. AI can be used to optimize search and results when employees are reviewing what’s available to them and to help them choose the best suite of benefits tailored to their individual needs. Simplifying the decision process and using AI to support navigating various benefit options can make benefits more accessible and utilized by employees without incurring additional work on behalf of the HR team.

The Importance of a Human-Centered Approach to HR

On the other hand, there are some aspects where HR should prioritize a human touch. Addressing employee needs and crafting strategies should remain fundamentally human-centered. HR leaders must prioritize human connections, particularly in remote and hybrid work environments where engagement can be more challenging. By keeping humans at the heart of these processes, organizations can ensure that employee interactions and strategic decisions maintain the depth and empathy necessary for a supportive and cohesive workplace.

Paaras Parker, Chief Human Resources Officer, Paycor, says on the importance of humanity in HR: “Any complex need that involves an associate should still have a personal touch. We need to ensure we keep humans at the center especially when we know so many report that connections at work can be harder to make in virtual and hybrid environments.”

Maintaining a human-centered approach not only fosters a more inclusive and empathetic work environment but also enhances employee satisfaction and productivity. According to Workday, 33% of HR leaders worry AI will make the HR employee experience worse. However, there are ways to incorporate AI while maintaining the human touch in all the ways that matter most. 

Personal engagement is crucial for building a thriving employee culture, understanding individual employee concerns, and creating tailored solutions that AI may overlook. Getting to know your employees by celebrating their pets, adding a pet Slack channel to encourage engagement, and having bring-your-pet-to-work days are all things AI cannot do, but can greatly improve or enhance the employee experience. In essence, the human touch in HR is irreplaceable and remains vital for the holistic well-being of employees and the organization as a whole.

AI’s role in HR and benefit strategies has the potential to be transformative. It offers advantages in automating processes, providing administrative support to HR teams, and optimizing benefit utilization. However, it’s essential to balance these advancements with the preservation of human interaction and strategic decision-making. However, a personalized touch to benefits is crucial for supporting all kinds of families, ensuring employees receive the care they need when they need it. By leveraging AI where it excels and maintaining a human touch where it matters most, HR teams can create a more efficient, supportive, and engaging workplace for all employees.