With the rise of Artificial Intelligence, it seems like every aspect of our lives is being influenced by this advanced technology. And guess what? Human Resources is no exception! The field of Talent Management has recently discovered an unlikely ally in the form of AI tools. 

When ChatGPT emerged on the scene in the latter half of 2022, it quickly became the talk of the town in HR and recruitment circles. But that's not all! Beamery, the global frontrunner in HR technology and talent management, unveiled TalentGPT, a product that brings together Beamery's existing AI capabilities with OpenAI's GPT-4, accompanied by a range of impressive large language models (LLMs). 

Who would have thought that AI could hold the ability to transform talent management? However, as we witness this reality, it becomes crucial to ponder over its limitations. The overwhelming excitement surrounding AI and its capabilities has made it difficult for many to distinguish between hype and actuality. Therefore, People Matters reached out to Dhanashree Thakkar, the Head of Human Resources at Bharti AXA Life Insurance, to gain insights into whether AI is capable of handling it all?

Why is a shift from traditional to tech-savvy HR necessary? 

With advancements in HR technology, organisations now have access to powerful tools and platforms that can streamline talent management processes, automate administrative tasks, and provide valuable insights. However, the adoption and integration of these technologies may be limited in traditional methods, resulting in missed opportunities for efficiency, accuracy, and strategic decision-making, stated Dhanashree Thakkar. 

“Traditional talent management methods tend to be reactive rather than future-oriented, focusing solely on productivity rather than potential or strategic workforce planning. Consequently, their ability to add value may be limited. Also, traditional practices can be very time-consuming, involving numerous manual processes and personal involvement at every step,” she said.   

Identifying and nurturing high-potential employees 

It's crucial to ensure that high-potential employees are given visibility and opportunities for advancement within the organisation. Clear career pathways, succession planning initiatives, and talent mobility programs can help retain and engage these employees. “AI can play a crucial role in this aspect. AI-powered talent analytics basis all the data points throughout employee’s life cycle can assess employee data to identify patterns and indicators of high potential, enabling targeted identification of top performers,” explained Thakkar. 

She further added, “This comprehensive approach enables identification of strengths, areas of improvement, and potential warning signs that may require attention. Machine learning algorithms continuously analyse employee performance, skills, and engagement levels to provide actionable insights for us to create personalized development plans that best serves the objective of employee development. Lastly, AI enables identification of emerging skill sets that will be critical for future success, ensuring alignment with organisational goals and market demands.”

For instance, talent processes at “Bharti AXA Life, prioritise establishing a strong personal connection by creating comprehensive profiles that showcase "Who they are" and "What they do" for each employee,” said the Head of Human Resources at Bharti AXA Life Insurance and added, “The focus lies on engaging with employees on a personal level and providing guidance on career paths. To enhance this approach, AI insights come into play through the utilisation of engagement bots. These bots assess employee sentiments, interests, and connection opportunities throughout the entire experience cycle. However, there is a need to strengthen this approach by integrating AI into talent visibility across the entire employee lifecycle.” 

Ethical considerations related to using AI in talent management

As AI systems rely on historical data and algorithms, they can perpetuate biases, leading to unfair treatment based on factors such as gender, race, or age. Safeguarding against bias and striving for impartiality in decision-making becomes imperative. Another ethical consideration revolves around privacy and data protection. The collection and analysis of personal data in AI-driven talent management necessitate responsible handling and adherence to data protection regulations.

According to Dhanashree Thakkar, “sharing a significant amount of personal data with AI systems raises concerns about privacy and security. It is crucial to establish strict internal data management policies and ensure compliance with regulations when working with partners. As AI relies on extensive data for training, there is a risk of amplifying existing biases. To mitigate this, it is essential to feed diverse data into the system to prevent unfair treatment of any group of employees.” 

AI and HR: What does the future hold?

A stronger workforce planning strategy focuses on predicting performance rather than simply reacting to it. By employing proactive methods to engage with talent, “we can gain a better understanding of the direction the winds may blow, much like weather or stock predictions,” suggested the Head of Human Resources at Bharti AXA Life Insurance. 

“Additionally, to create powerful insights, it is crucial to leverage emerging skill sets and establish links with industry data. AI will provide personalised insights and recommendations, enhancing decision-making and talent development, which will immensely help achieve the HR goals. This integration will create a more engaging and supportive work environment, attracting, developing, and retaining the best talent by offering personalised growth opportunities and fostering a culture of continuous learning.” Dhanashree Thakkar told People Matters. 

She also advised HR professionals looking to leverage AI in talent management to ensure the visibility of strategic objectives and their connection to talent. “This needs to be followed by identification of the lead indicators that need to be tracked and the expected outcomes. This involves determining which parts of the employee lifecycle will provide the most valuable inputs,” concluded Thakkar. 

It is crucial to understand that AI is meant to enhance human insights rather than replace them. In this context, AI serves as an additional tool that strengthens the decision-making process. By combining AI's analytical power with human expertise, HR professionals can enhance talent management processes effectively.