AI has begun to integrate into every facet of our daily lives. The intersection of artificial intelligence (AI) and People and Culture has created opportunities to transform the way organisations manage their people.
Among the innovative AI technologies that have emerged, ChatGPT, powered by OpenAI, has become a game-changer in enhancing the capabilities of the people function. With its advanced natural language processing and conversational abilities, ChatGPT opens up new avenues for streamlining HR processes, improving employee experiences, and driving organisational success.
In this article, we look at the transformational potential of ChatGPT in HR, exploring how it can revolutionise the way we interact with, engage, and empower the workforce. But we also consider the potential downsides of this new technology and balance this against the advancements we might see in the world of HR and wider business.
What is ChatGPT?
ChatGPT is an Artificial Intelligence (AI) chatbot specialised as a large language model released in November 2021 by Open AI. CHatGPT is the fastest-growing app in history, with 100 million active users during April and May 2023.
Chatbots have become an increasingly popular tool across various industries, with ChatGPT being recognised by experts as both a positive and, potentially, negative tool, depending on its use.
ChatGPT and the News
Most recently, an open letter was published in the Guardian, which was co-signed by Elon Musk (Founder of Tesla and SpaceX), Steve Wozniak (Apple co-founder), and Gary Marcus (cognitive scientist) requesting that AI be paused for further development. The reason for requesting the development pause was that, as a society, we have yet to understand the risks of having such technology in the public domain without safety protocols.
Alan Truly, the Tech enthusiast and writer for Digital Trends, also shared his concerns publicly and explained that privacy and financial leaks have been reported. On top of this, OpenAI’s privacy policy states that user activity and login information might be shared with third parties, which creates a potential for misuse and reasonable safety concerns.
Others in business have raised similar concerns for organisations and cybersecurity. Forian Maceki (Executive Vice President of Marketing for Arcserv) outlined in an article for intelligent CISO that security firm, Check Point Research, has reported that individuals have used ChatGPT to create software and emails for espionage, ransomware attaches, and malicious spamming. He recommends that users are vigilant about the prompts they are choosing to input into ChatGPT and be aware that confidential or sensitive data sensitive can be extracted and used for nefarious reasons.
But What About Risks to Job Security?
Business Insider reports that there are possibly ten roles that AI will most likely replace. These include:
- Tech roles: Coders, software engineers, and data analysts
- Media roles: Advertising, content creation, technical writing and even journalism
- Legal industry roles: Paralegals and legal assistants
- Market research analysis
- Teachers
- Finance roles: Analysts, personal finance advisors
- Traders
- Graphic designers
- Accountants
- Customer service agents
Amazon conducted tests using ChatGPT as an answering bot for basic corporate enquiries. These tests provided compelling evidence that ChatGPT has the potential to replace certain job roles. Not only did the AI prove to be helpful in addressing these enquiries, but it also offered significant support in customer service.
Forbes presents a slightly different perspective, suggesting that AI will not necessarily endanger jobs but rather assist in enhancing productivity for roles involving manual administrative tasks. It is also important to note that ChatGPT is not infallible and has demonstrated occasional inaccuracies in mathematical calculations and the potential to present false information to support its arguments.
ChatGPT in HR and the People and Culture Function
The emergence of advanced AI models like ChatGPT has opened up new possibilities for their application across various domains. One area where ChatGPT holds potential is the People and Culture function. With its natural language processing capabilities and ability to generate human-like responses, ChatGPT can be leveraged to enhance and streamline various aspects of managing human resources, employee engagement, and organisational culture.
Recruitment and Selection
One valuable application of ChatGPT in HR is it’s role in the recruitment process and its ability to aid in the initial screening of job applications and CVs. By providing responses to frequently asked questions about the company and the job posting, ChatGPT can help save time and resources for HR and resourcing professionals. However, it is crucial to exercise caution regarding potential biases and discrimination, as ChatGPT may not inherently consider these factors. It is imperative to ensure that human oversight is in place to mitigate any unintentional biases that may arise.
According to a study by Korn Ferry, chatbots can reduce the time spent on recruitment by up to 90%.
Onboarding
ChatGPT in HR offers a valuable capability in providing comprehensive information to newly onboarded employees regarding company culture, policies, and benefits. This serves to create a welcoming and engaging environment for new hires, helping them feel more at ease in their new roles. Leveraging chatbots, questions can be addressed in near real-time, offering prompts and accurate guidance on various processes and policies within the organisation. By utilising ChatGPT in this way, companies can enhance the onboarding experience.
A study by Aptitude Research found that using chatbots during onboarding can increase employee engagement by up to 25%.
Training and Development
By leveraging ChatGPT in HR and the learning and development function, personalised training recommendations can be offered based on an employee’s individual performance and learning style. This tailored approach to learning and development can effectively enhance employees’ skills and boost their overall performance. Deloitte conducted a study that revealed that personalised learning experiences can significantly improve employee performance by up to 37%.
Employee Engagement and Satisfaction
ChatGPT can serve as a valuable tool in establishing a confidential channel for employees to express their concerns and provide feedback to HR. This enables HR professionals to identify and address issues that might be affecting employee engagement and satisfaction within the organisation. This functionality becomes even more significant considering the findings of a study conducted by Deloitte, which revealed that companies with high employee engagement enjoy a remarkable 21% higher profitability compared to those with low engagement. Therefore, by leveraging ChatGPT to facilitate open communication, companies have the potential to positively impact both employee wellbeing and overall organisational success.
By incorporating ChatGPT in HR processes and practices, the People function can reclaim valuable time and redirect its focus toward the strategic elements of HR.
What was our experience?
While the use of ChatGPT in HR can be intriguing and users will want to explore its functionality to test how capable it really is, our experience has shown that it falls short in generating robust, effective, and up-to-date legal policies or contracts of employment.
Employers may consider using AI as a substitute for certain HR administrative tasks, but they must be aware of the potential pitfalls. AI-generated text may lack the personal touch necessary to adapt to individual employee circumstances and can pose risks when legally binding obligations are involved. Contractual clauses may prove unenforceable, outdated with employment law, or even pose financial risks in case of disputes.
While AI will undoubtedly remain a part of our lives, it cannot replace the human touch built on trust, collaboration, understanding, and empathy. Therefore, caution should be exercised when utilising ChatGPT in HR, particularly with regard to employees using the function for work purposes, as this may introduce greater risks to clients and the business. Employers are strongly advised to consider implementing new policies that outline the appropriate use of ChatGPT and Generative AI within their organisations.
