People professionals need to balance innovation with integrity when implementing artificial intelligence in organisations, say Sarah Jo Loveday
In the ever-evolving landscape of HR, AI has sparked both excitement and concern. AI promises to revolutionise HR practices, but it also raises profound ethical questions that demand careful consideration and proactive solutions.
Research from the Harvard Business Review reveals that nearly 70 per cent of organisations are already using AI in some capacity for HR functions, ranging from recruitment to performance management. This widespread adoption underscores the urgency of addressing ethical concerns to ensure that AI serves as a force for positive change rather than perpetuating existing biases or disparities. The integration of AI in the workplace has the potential to drive efficiency and innovation. Yet, as organisations increasingly turn to AI-driven solutions, HR professionals must play a central role in shaping the ethical guidelines that govern its implementation.
Recent research shows the urgency of proactive engagement by HR professionals in the development of ethical AI frameworks. According to a survey conducted by the Society for Human Resource Management, 92 per cent of HR leaders recognise the importance of ethics in AI adoption, but only 37 per cent report being actively involved in discussions at the highest levels of their organisations. This gap between recognition and action highlights the critical need for people professionals to assert their expertise and influence in shaping the ethical trajectory of AI in HR. On that note, Peter Cheese, chief executive of the CIPD, calls on HR professionals to stay ahead of AI usage: “AI is accelerating fast and now is the time for organisations to learn, experiment and innovate, to understand both the potential benefits to people, job and business outcomes, but also to understand the risks.”
HR professionals bring a unique perspective to discussions surrounding AI ethics, drawing on expertise in talent management, organisational culture and employee relations. By actively participating in strategic conversations at the highest levels of the business, HR leaders can ensure that ethical considerations are integrated into AI initiatives from inception to implementation.
HR must actively engage with government agencies and policymakers to advocate for the development of ethical guidelines tailored to the unique challenges and opportunities presented by AI in HR. Through the exchange of our expertise and insights, HR leaders must actively participate in shaping AI-related regulations that achieve a delicate equilibrium between fostering innovation and upholding ethical principles. We must adopt a strategic mindset, delving deep into the intricacies of AI rather than avoiding it.
Ethical dimensions of AI in HR
One of the most pressing ethical dilemmas revolves around bias in AI algorithms. Studies have shown that AI systems “can reinforce biases present in historical data, leading to discriminatory outcomes in hiring, promotion and other HR decisions”. For instance, a recent study published in Humanities and Social Sciences Communications found that AI-powered recruitment tools exhibited gender bias, favouring male candidates over equally qualified female applicants. Most of us are already aware of this. How are we going to tackle this challenge?
Transparency emerges as a cornerstone of ethical AI implementation. Employees must understand how AI is being utilised in HR processes and the criteria it uses to make decisions. According to a survey by Deloitte, only 38 per cent of employees feel comfortable with AI applications in HR because of concerns about transparency and fairness. To build trust, HR leaders must prioritise clear communication and provide employees with insights into how AI augments decision making while safeguarding their rights and interests.
Furthermore, privacy and data security remain paramount in the age of AI. Research by PwC indicates that 85 per cent of employees are concerned about the security of their personal data as AI becomes more prevalent in HR practices. Organisations must uphold rigorous data protection measures and adhere to ethical guidelines to ensure the confidentiality and integrity of employee information.
Accountability emerges as a central theme in ethical AI governance. HR professionals must take proactive steps to establish accountability frameworks, including regular audits of AI systems, mechanisms for feedback and robust governance structures to monitor and mitigate biases.
Despite these challenges, research suggests that ethical AI practices can yield tangible benefits for organisations. A study by McKinsey & Company found that companies with “diverse and inclusive workforces are 35 per cent more likely to outperform their competitors”. By leveraging AI responsibly, HR professionals can enhance diversity, equity and inclusion initiatives, driving innovation and fostering a culture of belonging.
The ethical integration of AI in HR represents a complex yet transformative opportunity for organisations. By addressing biases, prioritising transparency, safeguarding privacy and promoting accountability, HR leaders can harness the full potential of AI to create workplaces that are fair, inclusive and future ready. As we navigate this ethical frontier, let us embrace innovation with integrity, ensuring that AI serves as a catalyst for positive change in organisations, and society at large.
Time to lead, HR professionals – let's ensure ethical AI in HR by emphasising transparency, accountability and ongoing learning. Join forces, educate and craft guidelines that champion inclusivity. Together, we'll create a workplace where everyone flourishes.
Sarah Jo Loveday is a senior HR consultant
Article published in People Management Magazine, May 2024
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