Artificial Intelligence (AI) is transforming the way small business owners work. And now it’s changing the way we hire. At first glance, the use of AI for human resources purposes would seem to be a practice better suited for large corporate businesses. But Jason Walker, cofounder of Thrive HR Consulting, an HR consulting firm, says the “transformative potential of AI” is for companies of all sizes.
Thrive recently partnered with Reveal AI to help businesses gain more insight into how AI can reshape their HR strategies and encourage employee growth. Walker says one of the advantages of AI-powered HR solutions is that they “allow large groups of employees to be interviewed in a fraction of the time it would have taken [using] traditional methods to interview people and collect feedback.”
So, explains Walker, using AI technology allows businesses to collect whatever data it’s looking for “in weeks as opposed to months.” This “allows the user to review, organize, and analyze [the data] with AI or in any way they want.”
AI solves human resources problems quickly
Walker says using AI-powered HR solutions allows businesses to solve HR problems before they vanish without any resolution. He says in the past, when companies tried to collect information about an HR issue through a formal assessment process, by the time the investigation was completed, “the data could be old, and the issue could no longer exist. The real-time nature of [using an AI solution] allows the HR team to recognize a problem and work on it immediately. Being this proactive can help improve employee engagement and retention in a real-time way.”
For smaller companies, employing AI technology to solve HR issues can help since most small businesses have few, if any, HR professionals on their staff. So HR issues are handled by any number of company employees, from the owner to the office manager to the accounting department or whoever is in charge of hiring. And Walker says AI-powered HR solutions are “accessible to most companies.”
Hiring for the future with AI
According to CNBC, The World Economic Forum expects that by 2025, Gen Z will account for 27% of the workforce. “Yet, attracting, managing, and retaining these younger workers will take a different approach,” Tara Salinas, a professor of business ethics at the University of San Diego, told CNBC.
Underscoring this point, Walker says Reveal AI’s research indicates that younger employees prefer to interview with Reveal rather than a human interviewer. And Reveal AI’s data shows Generation Z interviewees believe the AI is more interested in what they say. Because of that, they spend more time explaining issues than they would with a human interviewer. They also think the Reveal AI [bot] is more empathetic and personal than a human interviewer.
Integrating AI with HR is transforming workforce engagement
Walker believes the convergence of AI technology and HR expertise will ultimately transform how small and mid-size businesses understand and engage with their workforces. He says, “It will remove the anecdotal nature of HR. Many times, HR identifies [something as an] issue because there is a sense that since the [subject] came up [several] times, it is important, and there are [numerous employees] being impacted by it.”
But, by using AI and “being able to do a real-time assessment virtually at any point you want to, you will be able to use facts and data to highlight the issue immediately.”
Walker acknowledges that some people have concerns about companies using AI technology ethically and have privacy concerns. He says at his company, “As there are no rules governing AI, it is up to the consultants and the vendor to ensure there are safeguards. We have extensive conversations with our vendors to ensure they are training and curating the AI in the best ways possible that will eliminate ethical concerns.”
So, if you’re going to deploy AI HR solutions, it’s on you to be sure it’s done responsibly.
Can small businesses employ AI HR solutions?
This usage of AI-powered HR solutions is growing rapidly. According to Walker, there have already been over 22,000 successful implementations across different industries, large and small. And he says using an AI-powered HR solution is “very accessible for small businesses,” adding that the price point is low.
Should your small business consider using AI HR solutions? Think about the recruiting process at your company. Finding strong potential job candidates is typically challenging and recruitment takes time. AI tools can help you sort (and reject) resumes, screen job seekers, and, like Reveal’s AI, even interview candidates. How much time—and money—would that save your company?
The future of AI for HR
Walker believes using AI for HR practices is “here to stay.” And he says it will only become more prevalent as businesses continue to gain efficiencies and try to save costs.
“AI,” he insists, “will reshape our workforces.”
