The pros and cons of AI usage

 

All industries benefit from the increased usage of artificial intelligence since it makes labor simpler and more efficient. However, acceptance of the impacts or drawbacks of AI must also be taken into account. Through the influence or adoption of AI, Human Resource strategy is now widely recognized as being an important – and perhaps essential way of developing organizations to meet increased competitive challenges (Tony and Laura, 2003).

Human Resources and organizations

AI-based software is being used by HR professionals to handle applicant applications, assess resumes, communicate with candidates, arrange interviews, conduct online virtual video interviews, and analyze tone and pauses in voice recordings. Organizations are using a variety of AI-based solutions and services to manage all phases of the employee life cycle, from performance management to compensation management. AI tools are being utilized for anything from meeting scheduling to browsing recommendation lists on OTT platforms like Netflix and Amazon Prime (Ashwani, Kamal and Jayanthi, 2021).

It is well known that deploying AI to manage HR activities comes at a significant expense. But the following advantages in HR functions can be used to justify this cost. The use of AI reduces the amount of time HR personnel spend on administrative tasks. Because AI bots can perform low-value, regular HR transactions and inquiries, AI also lessens the pressure on help desks. AI is helpful for functions involving retention and recruitment. AI also aids in assessing how HR activities affect corporate growth and earnings. AI is helpful in HR choices since it lessens bias. With the use of conversational AI, enterprises may use AI to stay competitive. HR professionals may now devote more time and effort to strategic planning due to time and effort efficiency advantages (Ashwani, Kamal and Jayanthi, 2021). As a result, the adoption of AI will result in a reduction in overall time consumption, which will help an organization complete its tasks more quickly, and fewer human resources are also beneficial for any company.

According to Gartner 2019 AI survey, 17% of firms manage their HR responsibilities using AI-based solutions. Another 30% of respondents to the study said they intended to deploy AI by 2022. Additionally, 52% of firms currently use AI for workforce planning, 51% use it for learning and development, and 48% use it for skills management. According to the poll, AI-based solutions assist HR departments in creating new personalization strategies by creating HR systems and services that are quick and simple to use (Ashwani, Kamal and Jayanthi, 2021).

Finding a person’s genuine purpose and meaning in life and at work is one of employee engagement’s primary goals. Traditional approaches offered few opportunities for interaction and predetermined measures for gauging their productivity and participation. To improve the employee experience before, during, and after work, firms can use AI to approach engagement as a continuous, insight-based, personalized, and tailored strategy (Ashwani, Kamal and Jayanthi, 2021).

In addition to employee engagement, attitude and behavior mapping are two AI-based engagement methodologies. During the hiring process, several firms employ AI to improve applicants’ applications. AI-based assessments are helpful in evaluating the personality and abilities of candidates late on in the selection process. By offering learners individualized and tailored learning solutions, AI aids in supporting learning and development (L&D). The learning preferences and demands of employees can be determined via AI-based learning platforms. And chatbots powered by AI are being used by businesses to answer questions from applicants and staff members during the recruitment, selection, onboarding, training, and performance review process. Additionally, AI frees up the time of the instructors and reduces the amount of money needed to set up the training programs (Ashwani, Kamal and Jayanthi, 2021).

Education sector

The quality of online education has already benefited from AI and machine learning. Each student’s learning pace will be different, and personalized interactive tutoring will be able to alter the content and adapt to that while evaluating the student’s progress and providing timely feedback (Salim, 2020). In order to continue providing educational services without interruption during the epidemic, many segments of the education industry, notably those involved in distance learning, incorporated AI and machine learning.  

Common usage

From tracking applications to Google maps to AI digital personal assistants like Siri, Google Assistant, Cortana, or Amazon Alexa, AI is a component of many business lines. With the aid of Grammarly, an increasing number of people are adopting AI to verify their language and grammar. Several people use artificial intelligence during virtual meetings for translation. For translating one language, Skype’s Translator provides translation in numerous languages. AI is also being used by people to take notes during conference calls. Also, Google’s smart feature uses AI to analyze the email’s content and recommend short responses (Ashwani, Kamal and Jayanthi, 2021). As a result, there are many ways in which the use of AI benefits daily life. 

Banking industry - Inquiry Chatbot

Another aspect is that banks have websites, but due to GUIs or complicated navigation, these websites may be difficult for most individuals to use or understand. These kinds of issues can be resolved by creating a chatbot. The system can quickly and easily answer users’ questions at any time. Customers do not need to visit a bank or customer service center to get their questions answered; as a result, users and bank workers can save valuable time and have less work to complete. Users of this system can submit queries verbally or in plain text, which is an advantage. The technology will comprehend queries and provide accurate responses. For any bank-related inquiries, a chatbot is a computer program designed to facilitate communication between a human and an intelligence machine (Arati and Ajaykumar, 2019).

Summarized advantages are as follows: (Arati and Ajaykumar, 2019, p.53)

The bot makes users feel that they are interacting with a human being.

The bot answers very quickly.

The system is easy to understand and handle.

The intelligent system understands users’ queries and answers quickly.

Users need not write questions they can speak questions.

Users need not write the questions in the standard format

A time-saving, intelligent assistant system that will lighten the job of bank staff members. Users experience communication with a human, much like a personal assistant. The user has the option of asking questions orally or in plain text in English. The system will analyze the user’s inquiry and produce the appropriate response. People have used both natural language processing and artificial language processing to achieve these tasks (Arati and Ajaykumar, 2019). In order to provide its customers with effective service, the banking sector is currently gradually implementing chatbots that use AI throughout the world.

Conventional banking systems have clearly been impacted by the recent digital transformation, but it has also made businesses less safe and more vulnerable to cybersecurity dangers. Businesses are increasingly considering technical advancements like blockchain when developing an integrated financial fraud protection strategy (Nasser, Anis and Ananda, 2021). So, it’s important to take heed of the concern over the negative effects of using AI.

Barriers to the adoption of AI

A talent gap results from obstacles such as a shortage of educated and talented workers in addition to the cost barrier. Privacy concerns are a significant issue. HR is regarded as the data keeper for employees. The security of these data against theft and illegal use is a significant problem that is holding back the use of AI in HR. AI needs to be maintained, updated, and reviewed continuously. Another significant problem is this consistent and ongoing update and reviewing procedure. Major difficulties include the availability of data for training and worries about interaction with current systems. Due to the fact that the majority of current systems use Software as a Service (SaaS), a significant obstacle is the absence of effective case studies and tested applications (Ashwani, Kamal and Jayanthi, 2021).

 

 

 

References:

Arati A and Ajaykumar T (2019), “Banking Inquiry Chat Bot”, International Journal of Science Technology & Engineering (Vol.5, Issue 7), pp.51,53, Academia, India

Ashwani Upadhayay, Kamal Khandelwal and Jayanthi Iyengar 2021, AI Revolution in HRM, SAGE, India and England

Nasser Rashad Al Mwali, Anis Moosa Al Lawati and Ananda S (edts) 2021, Fourth Industrial Revolution and Business Dynamics: Issues and Implications, Palgrave Macmillan, Singapore

Salim Sheikh 2020, Understanding the Role of Artificial Intelligence and Its Future Social Impact, IGI Global, UK

Tony Grundy and Laura Brown 2003, Value-based Human Resource Strategy: Developing your consultancy role, Elsevier, Oxford and Burlington