By Kajetan von Armansperg, Co-CEO of Leapsome
The HR landscape is undergoing a remarkable transformation fueled by Artificial Intelligence. AI is no longer a distant concept, with 90% of HR leaders and 75% of employees using AI at work at least once a week. The technology is already reshaping how organizations operate, HR leaders strategize, and managers lead their teams.
In this era of rapid technological change, it’s our primary challenge and opportunity to empower employees to harness AI’s potential fully. At Leapsome, we believe that AI use in HR isn’t just a tool; it’s a driver of organizational excellence and employee empowerment.
Below, I share my five predictions for AI in the people function in 2024. These predictions offer insights into how organizations can leverage AI, promote continuous learning, redefine performance evaluation, adapt workforce planning, streamline data tools, and embrace a new work-life balance.
Prediction #1: AI-driven growth needs a renewed commitment to learning and development
With AI’s rapid evolution, organizations face a pressing question: How can we ensure our employees thrive in this ever-changing environment? The answer is a culture of continuous learning and development. Employees must learn and relearn how to use AI tools to effectively leverage them to enhance their roles and the organization’s overall performance.
Learning is the real imperative of successful AI use, and thriving organizations will prioritize it like never before. They’ll proactively invest in AI-powered internal training academies and personalized learning programs that empower employees to stay ahead of the curve.
Why is this shift so critical? Because the consequences of ignoring it are stark: Organizations that fail to prioritize learning and development risk falling behind in the AI race. Their employees may struggle to adapt to AI-driven workflows, reducing productivity and engagement. Ultimately, this could result in high turnover rates and diminished competitiveness.
On the flip side, organizations that embrace learning and development as a cornerstone of their AI strategy will reap substantial rewards. Employees who are confident in their AI skills will not only drive productivity but also boost creativity and innovation. This, in turn, will feed a strong sense of purpose and alignment with company goals, boosting engagement and retention.
Prediction #2: AI calls for a redefinition of employee performance evaluation
When new technology brings constant and unpredictable change, managers and HR leaders must revisit how they measure employee performance. How can you fairly evaluate employees when the capabilities at their fingertips are constantly changing, and the effects of those changes are unpredictable?
The rapid evolution of technology means that employees are continuously adapting to new tools and capabilities. Two critical characteristics of generative AI exacerbate this challenge.
- First, consider the remarkable adoption rate of products like ChatGPT. Within two months of its launch, it boasted 100 million users, a milestone that took Instagram two and a half years to achieve. This unprecedented adoption speed underscores AI’s pervasive influence in the workplace.
- Second, AI-enabled tools distinguish themselves from conventional digital technologies by their capacity to evolve autonomously. They don’t remain static but adapt and improve over time, meaning what’s available to employees also changes regularly.
MIT Sloan School of Management’s research further highlights the transformative impact of AI. Their findings reveal that GPT tools can boost worker performance by up to 40% in task completion compared to those who do not utilize such tools. This reality demands a fundamental rethinking of traditional employee performance evaluation.
Historically, managers assessed their employees based on expertise, speed, efficiency, creativity, and accuracy in completing tasks. Most discussions about AI’s impact have revolved around how it enhances productivity. However, in an AI-driven landscape, it becomes essential to consider alternative metrics. Attributes like collaboration, perceived commitment, emotional intelligence, effective management or mentorship, adherence to company values, and ethical judgment gain prominence.
Furthermore, HR may consider reevaluating the frequency of performance reviews. Given the rapid pace of change, companies may find it beneficial to transition to more frequent assessments, potentially quarterly.
Prediction #3: AI’s Influence on Workforce Planning and Job Roles
In 2024, AI’s impact on workforce planning and job roles is undeniable. Traditional job descriptions are fading as AI takes on routine tasks, prompting a fundamental rethinking of workforce planning and division of responsibilities. We’re already seeing and will continue to see significant parts of jobs transform, roles change, and team sizes dwindle. While some jobs will disappear, this change will also result in many new jobs emerging.
We typically think of work roles in terms of the tasks they involve. But as AI upends the distribution of tasks, work roles will become more nebulous. Good leaders must figure out how to forecast headcount and manage recruiting and promotion in a world where jobs are dynamic rather than static. For example, that could mean favoring candidates with a range of abilities and the potential to learn in adjacent areas over people with deep expertise in one specific task. Likewise, current employees will increasingly need to evolve into adaptable generalists proficient in harnessing AI tools for specialist tasks.
Workforce planning will evolve into a dynamic, responsive process that anticipates changing skill requirements and job roles. This evolution isn’t just about adaptation; it’s about embracing the emergence of new roles and the transformation of existing ones — without falling victim to scaremongering about AI “taking our jobs.” After all, historical parallels to past industrial revolutions highlight the natural process of new roles emerging in response to automation.
As we navigate this AI-driven revolution, organizations proactively adjusting their workforce planning, embracing versatile generalists, and anticipating the evolution of job roles will lead the way in HR and technology.
Prediction #4: Tool Consolidation in the AI Era
Data is priceless in the age of AI, and its consistency is essential. Frequent changes in internal tools can be cumbersome, hindering organizations from fully utilizing AI’s potential.
AI’s demand for dependable data makes tool consolidation not a choice but a strategic imperative. Organizations must evaluate their toolkit to navigate the AI-driven landscape effectively.
The ideal toolkit for the AI era includes technology with built-in AI capabilities and open interfaces for data analysis to ensure seamless AI integration into everyday operations.
On the other hand, failure to maintain consistent data sources can result in inefficiencies that undermine AI’s advantages. This is why organizations must prioritize tool reliability and adaptability to unlock AI’s true potential.
Prediction #5: The Potential for Reduced Working Hours with AI
As AI-driven tools streamline tasks and enhance productivity, employees achieve more in less time. This not only means more time to dedicate to higher-value, strategic functions in the business but also a gradual reduction in working hours and the potential for an improved work-life balance. With enhanced efficiency, employees can maintain a high level of output while enjoying more leisure time. This transition promises several potential benefits:
- Improved employee well-being — Reduced working hours contribute to enhanced physical and mental health, fostering overall well-being.
- Increased job satisfaction — More leisure time empowers employees to pursue personal interests, contributing to better work-life balance and, as a result, higher job satisfaction.
- Talent attraction and retention — Organizations offering a better work-life balance are more appealing to top talent, supporting recruitment and retention efforts.
Despite these promising prospects, potential concerns shouldn’t be overlooked. Managing expectations, striking the right balance, and maintaining work quality amid reduced hours are essential to ensure that employees and businesses thrive in this evolving landscape.
One thing is for sure: While the exact translation of these benefits into individual lives remains to be seen, the promise of spending less time on mundane tasks and embracing our more human aspects — at work and outside of work — is a positive step toward a more fulfilling work-life balance.
The future of HR in an AI-driven world
Organizations that can effectively leverage AI, empathy, and education to upskill their employees, revolutionize their organizational structures, and establish an accurate inventory of skills and business problems will see exponential increases in productivity compared to their peers. The future of HR in an AI-driven world is not just about adapting to change; it’s about leading it. As AI continues to evolve and integrate into every facet of our professional lives, those who embrace these changes will thrive.
This isn’t a distant future; it’s happening now. Together, we can shape a new era of HR where AI empowers, organizations excel, and employees flourish. So, seize AI’s opportunities, prioritize learning and development, rethink performance evaluations, adapt workforce planning, consolidate your tools, and foster a better work-life balance. By doing so, you’ll be at the forefront of HR innovation, driving your organization to new heights of success.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.