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Is AI Taking the Human Out of the HR Department?

Is AI Taking the Human Out of the HR Department?

Released Friday, 2nd February 2024
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Is AI Taking the Human Out of the HR Department?

Is AI Taking the Human Out of the HR Department?

Is AI Taking the Human Out of the HR Department?

Is AI Taking the Human Out of the HR Department?

Friday, 2nd February 2024
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0:00

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all lowercase. That's shopify.com

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slash tech. Perhaps

0:33

you or someone you know has exclaimed

0:35

in dismay, AI is

0:37

going to take my job. Critics

0:40

fear the rapid growth of AI could threaten

0:42

jobs or be used for malicious purposes. Another

0:45

concern is could AI take jobs? Let's

0:47

focus now on AI's impact on the

0:49

way we work. One of the biggest

0:51

worries people have about AI is we'll

0:54

take our jobs. It turns

0:56

out some companies are already using or

0:59

considering using generative AI

1:01

internally. According to a Gartner

1:03

survey from June 2023, most

1:06

organizations appear open to adopting new

1:09

HR tech. Only 15% of

1:11

the HR leaders they surveyed said

1:13

they had no plans to add generative

1:16

AI to their HR processes. So

1:18

whether you're an AI optimist or pessimist, generative

1:22

AI is likely coming to your workplace if it's not

1:24

there already. A

1:27

lot of CEOs are going to their teams and saying,

1:30

okay, you work in marketing, how are you

1:32

going to use Gen AI to sell better,

1:34

to operate faster and cheaper? That's

1:36

WSJ reporter Chip Cutter. He

1:39

covers workplace, management, and leadership issues

1:42

for our corporate bureau. Some companies, for

1:44

example, say that they think they can give up doing

1:46

photo shoots for their products. Why

1:48

couldn't you just have various sort of AI

1:50

tools do that for you? In

1:56

The Wall Street Journal, this is the future

1:58

of everything. I'm Charlotte Carter. Today.

2:01

We're looking at our A I

2:03

Hr future, how close it really

2:06

is, and what sorts of generative

2:08

A I resources. Might become

2:10

commonplace for human resources.

2:12

Stay with us. She

2:19

I am on a mission. Y

2:22

C cost fifty four percent of

2:24

black Americans don't have enough savings

2:26

to retire. So in collaboration with

2:28

thick name artists like Wiper, John

2:31

C. I a released paper right

2:33

new music inspiring the new financial

2:35

future with one hundred percent of

2:37

streaming sales going through a nonprofit

2:39

that teaches students how to invest

2:42

stream paper right now and how

2:44

close. The Gap. Ai

2:54

in a chair has been a thing

2:56

for a while, but it's getting more

2:59

widespread. We. Reported in Twenty eighteen

3:01

that nearly all fortune five hundred

3:03

companies were already using some form

3:06

of automation in their hiring processes,

3:08

whether that's robot avatars, interview in

3:10

job candidates, or computers weeding out

3:13

potential employees by scanning keywords and

3:15

resumes. Last. Month Wsj reporter

3:18

tip Cutter went to the

3:20

World Economic Forum in Davos,

3:22

Switzerland. After talking to

3:24

Ceos and company leaders, he

3:26

says that we're likely to

3:28

see lots more Ai and

3:30

human resources very very soon.

3:33

Tip: What has been the pros and cons

3:35

of this kind of a I use in Hr.

3:37

Well, it's helped a lot of companies. Be.

3:39

faster that they but and will do

3:41

more with less for example of your

3:43

screen name millions of resumes a large

3:45

company probably need automation software to help

3:47

you do that or otherwise if he

3:49

really hard for one person to sift

3:51

through all that so that's been around

3:53

for years right of ways to figure

3:55

out the right candidates to interview ways

3:57

to for example look at who might

3:59

be at risk of quitting. Companies

4:01

oftentimes have built like complex software to see

4:03

who's been in a role for a given

4:05

amount of time, who maybe is in need

4:07

of a promotion and hasn't got one. There's

4:09

all these ways that companies can kind of

4:12

get a sense for whether someone's a flight

4:14

risk. So that's been one way that companies

4:16

have used some of this technology in the

4:18

past. But right now, I think we're on

4:20

the cusp of a lot of change. And

4:22

many companies, many CEOs are telling their HR

4:24

chiefs and all their department heads, you need

4:26

to think about sort of how Gen AI

4:28

is going to change how we work. You

4:30

were just in Davos, so I

4:32

want to talk specifically about generative

4:34

AI because it's being more integrated

4:37

into workplaces. What have you been hearing? You

4:39

could not walk down the promenade, the main street

4:41

in Davos, without just seeing one display after the

4:44

next about sort of how AI is going to

4:46

transform corporate America. Every

4:48

interview with CEOs would somehow come back to

4:50

generative AI and how they were trying to

4:52

use it within their companies. Some

4:55

organizations have a real plan. Others are sort

4:57

of earlier in their efforts. But a lot

4:59

of CEOs are going to their teams and

5:01

saying, okay, you work in marketing. How

5:03

are you going to use Gen AI to

5:05

sell better, to operate faster and cheaper? Some

5:08

companies, for example, say that they think they

5:10

can give up doing photo shoots for their products. Why

5:12

couldn't you just have various

5:14

sort of AI tools do that for

5:16

you? But then AI and HR was

5:18

a big discussion as well. So for

5:20

example, one HR chief at a large

5:22

tech company told me that she has

5:24

done an interesting experiment with Gen AI.

5:27

And there was a case in her company

5:29

where a manager and that person's direct report

5:31

were not getting along. And

5:34

so she said with both people's permission,

5:36

can we upload the chat logs between

5:38

them and see what happened?

5:40

Like why aren't they getting along? And

5:42

so they ended up uploading pages and

5:45

pages of logs. And it came up

5:47

with some sort of interesting answers. And

5:49

one was that the employee was asking

5:51

way too many questions. And then the

5:53

manager was getting frustrated by this. And

5:56

the manager also felt that the

5:58

manager wasn't being heard. So

6:00

just having that information, they were able

6:02

to go back to these people and

6:04

they said the ratio actually improved afterwards

6:07

because both sort of knew, okay, this

6:09

is what's bothering the other person. So

6:11

it's almost like AI as corporate psychologists.

6:14

That's wild. That

6:17

to me was the AI example that I

6:19

remembered the most and that stood out to me

6:21

as the most distinctive in a week full

6:23

of conversations on this. But to me, it

6:25

shows that HR chiefs are thinking, could Gen

6:27

AI really change how we operate? And

6:30

if you think about this example, it'd be really

6:32

boring for a person to go through pages and

6:34

pages of logs and try to see, wait a

6:36

minute, why do these people not like each other?

6:39

What's happening there? But a machine can do that pretty

6:41

easily. But who who might have

6:44

an objection to having AI play that

6:46

role in HR? Well, you could see workers being

6:48

frustrated if this is done in a case where

6:50

they don't know about it or they haven't given

6:52

their permission. And if we're using corporate chat tools,

6:54

we've given up our permission like that our company

6:57

is able to sift through that. But

6:59

in this case, everybody knew this this was going

7:01

on. But you could see down the road where

7:03

some might think this feels a little bit like

7:05

Big Brother. What have you been

7:07

seeing in terms of more high level attitudes

7:09

about generative AI in HR? Yeah,

7:12

so many HR executives are optimistic about it.

7:14

They do feel that they want to use

7:16

it to some extent. And it's oftentimes cases

7:19

where companies might roll out, for example, a

7:21

chatbot that helps people say an employee could

7:23

more easily ask, like, how many vacation days

7:25

do I have left? Or

7:27

what is our policy on X? The type

7:29

of questions where someone might go to an

7:31

HR person and ask them, some HR people

7:33

think like, why can't we just build a

7:35

tool that answers them more easily? That's one

7:38

area where a lot of looking uploading policy

7:40

manuals, uploading benefits guides, all of this stuff

7:42

where it just might be easier just to have

7:44

Gen AI sort of be an aid that helps

7:46

employees navigate the company. Overall, HR,

7:48

like a lot of like a lot

7:50

of functions in corporate America is being asked to do more

7:53

with less. So Companies, This is

7:55

this as we're continuing to see sort of

7:57

an era of layoffs and kind of white

7:59

collar job. Cut in particular so it's

8:01

not a H R Teams are and get tons

8:03

of additional people there. She earth the so if

8:05

if you're in an Hr executive you're trying to

8:07

figure out how do we do more with less

8:09

and many are thinking jenny I could be helpful

8:11

here. So. What stands in a

8:14

way. Of there being more generative

8:16

ai in hr in the future. Part

8:18

of it as cost. I mean companies might

8:20

think they'll save money with this eventually, but

8:23

not in a short term. It's gonna cost

8:25

money to set this up and to you

8:27

know that to be able to do that.

8:29

So that's that's one immediate barrier. And the

8:31

others as technical, know how companies are at

8:33

all different stages on decimate. Some executives are

8:36

really immersed in it. Some companies, for example,

8:38

have had rolled out sort of. Mandatory

8:40

Jenny I training where for example by March

8:42

everybody the company has a complete you know

8:44

this multi our course on Jenny Ice. you're

8:46

up to speed on at your experiment with

8:48

it you're thinking about how could him a

8:50

better jobs And then there's a lot of

8:52

other companies that are saying this is still

8:54

hype, it still unproven. We don't want to

8:56

be an early move on Nes, let's hold

8:58

back. So a brew etti depends on the

9:00

attitudes are the executives have towards of technology

9:02

to. Yeah, Ike. I got that

9:05

impression a bit from this Gartner

9:07

survey from this past summer that

9:09

found that only five percent of

9:11

H leaders were reporting that they

9:14

were already implementing generative ai. And.

9:16

Only nine percent of those surveyed.

9:19

We're. Currently conducting generative ai

9:21

pilots which seems low

9:23

to. Me Very love. Is

9:26

this gonna take off soon? Or. You

9:28

keep hearing that while Twenty Twenty Three was the

9:30

year that we experimented with it and Twenty Twenty

9:32

Four as the year that Jenny eyes rolled out

9:34

at scale at companies and and I mean that

9:37

that's what executive some executives are say, but any

9:39

look at numbers like you just eat have shared.

9:41

It's clear a lot of companies are still very

9:43

early on all of us. We

9:48

may be in the early days of generative

9:51

ai been. Used in Hr but according

9:53

to the founder of girls. First,

9:56

the focus of the and innovation

9:58

and mitigating. Rest. Rushmore

10:00

Some johnny tell us about her organizations

10:03

new chat bot and why she's optimistic

10:05

about how Ai will be used in

10:07

the future. look at work and beyond.

10:12

This episode is brought to you by

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accelerated. And the a former

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Soviet solicit Fisher is is

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Cmu Edu sticker to. Then

10:40

there's. Wsj

10:49

reporter Chip Cutter told us were

10:51

already seen. Chat bots been developed

10:53

to help employees navigate company policy

10:56

and answer questions. Rush Muscle Johnny,

10:58

founder of Girls Who Code, recently

11:00

helped launch a similar chat bots

11:02

to do just that. Her. Goal

11:05

was to reach further than just

11:07

one company. paid leave.ai attack bought

11:09

designed to help people parse the

11:11

patchwork of laws affecting paid family

11:13

leave. New York State went online

11:15

in December of last year. The.

11:17

Tools Lawn Spicer, Johnny's Other

11:19

Organization Mom First in partnership

11:21

with Movie and Craig Newmark

11:23

Philanthropies. When. She first

11:26

came up with the idea for Danny

11:28

Says. She contacted Open A I founder

11:30

and Ceo Sam Altman. She.

11:32

Says he put her in touch with the

11:34

team behind Techy Be T, who provided early

11:36

technical advice and support. The. Connected her

11:38

with Novi, a developer that is part

11:40

of the Open A I Service Alliance

11:42

who developed Paid Leave That Ayaan Open

11:44

A I Tools. The. Goal of paid

11:46

leave that ai. To. Answer questions

11:49

about leave policies in plain

11:51

language. I begin by asking

11:53

restless oh Johnny to take me through

11:55

how the website works. So.

11:57

Let's say you're pregnant and you go to paid leave

11:59

Today I. I am will can you is

12:01

am I eligible? How

12:04

much money? Miles before? And. It's

12:06

gonna give you an action plan when you

12:08

go to the government website. they don't really

12:10

do that for you on in. One of

12:12

the things I love about the site is

12:15

it gives you a bunch of kind of

12:17

easy prompts because maybe don't know what you're

12:19

supposed to ask for. It doesn't just answer

12:21

your questions, it will draft to an email

12:23

to Hr if you need one. It will

12:25

let you email yourself in action plan or

12:28

checklist. You can save it and Senate's yourself

12:30

into to do to work on it. So

12:32

do you see this as a model for

12:34

other kinds of chat bots? Being used in

12:36

Hr. ah it's very interesting. it in a

12:38

because you can tell him pay we did

12:40

a i wears a traffic coming from most

12:42

of the traffic's coming from linked in and

12:44

if you look and see it's like it's

12:46

literally it or professional sending it to to

12:49

one another But I find it super interesting

12:51

that the you talk to each are people

12:53

that are like yeah bring on the chat

12:55

bots. We've. Been operating in a

12:57

state of fear. That. We need

12:59

to move through that. That doesn't mean

13:01

that we should be like there's no

13:03

risk so good you are, but that

13:05

mean so that we should be mitigating

13:07

the risk. But. Since think he

13:10

that the innovation. right? So let's look

13:12

the risks in the face. Hear what are

13:14

the risks? Of creating an hr

13:16

Tough but. I met

13:18

one of them. Is that it's gonna replace. Workers.

13:22

And. So I think that there's a lot

13:24

of fear that like a tool like

13:26

this will make it like you don't

13:28

really need a human. To. Help you

13:30

navigate this process. Good night out chap. Ah, They'll

13:33

do it either. Second thing is it will

13:35

give you the wrong answers. This.

13:37

Is terrifying way when it comes to

13:40

these laws. Momentous. Events

13:42

that you really need to know

13:44

how much money my going to get

13:46

on what I need to save

13:48

for and and sell these risks are

13:51

these Fears are real. Ah

13:53

I'm If you're really feeling them and are in

13:55

a it's funny when I started this project with

13:57

first muscle were hallucinations. Do I have. To hire

13:59

a. Human Yeah, I mean to

14:01

make sure that they're looking through

14:03

all the answers. And as I

14:05

dug in, I learned so much

14:08

right about how this particular use

14:10

case of paid leave the doesn't

14:12

have the same safety risks because

14:14

the wings bottle full limited. This.

14:16

Particular Large Language Model

14:18

or Llm helps mitigate

14:21

potential hallucinations. So. What

14:23

data went into the training of this chap?

14:25

Ah, Are. Ai is trained on

14:27

the New York State paid leave law. I'm

14:29

like like chatty Bt if not pulling from

14:32

the internet and collecting set of data from

14:34

a bunch of different sources. That's when it

14:36

that way, butter and for a sexy make

14:38

things up. To. Do way hallucination

14:41

against how much information you could possibly

14:43

feel. Absolutely listen. I mean like I

14:45

said this is one of the first

14:47

use cases of doing this so I

14:49

did not want set us up to

14:51

fail and so I what's what's interesting

14:53

is because there is like again l

14:55

a limited L am on there's there's

14:57

less safety risk issues so with the

14:59

large language model your training at all

15:01

any to limited to New York state

15:03

law. Yup that helps get rid of

15:05

some or get around some of the

15:07

possible quote. Unquote Hallucination Correct Yeah. But

15:10

then we do have the the risks of like

15:12

is this gonna replace humans the ones that you

15:14

mentioned How do we deal with those things. I

15:18

don't know. I don't know.

15:20

I mean. It's so funny.

15:22

Again, memorize. Spend my life. Teaching

15:25

girls to an avid mom is like wheat

15:27

said they saw learn how to code. you

15:29

know because there there's this perception might have

15:31

the skills that you're really gonna need and

15:33

as artificial intelligence moment his creativity like you

15:35

would actually me to lean more into the

15:37

liberal arts that because. the bottle

15:40

code for you so i think

15:42

that we have to see in

15:44

many ways how this kind of

15:46

plays out but i still worry

15:48

about it in the future i

15:50

mean if we see more chat

15:52

bots replace hr employees that i

15:54

i won't be able to interact

15:56

with a human being during his

15:58

high that's pretty sensitive it It

16:01

feels potentially dehumanizing,

16:03

like I'm just data relating

16:05

with data. It

16:07

might, but what are we going to do? It's here. It's

16:10

here. We're stuck in this

16:12

conversation of like doomsday, and it's

16:14

preventing us from really capturing all

16:16

the opportunities and use cases of

16:18

AI. Every conversation that we're

16:21

engaging on in AI, is it good or is it

16:23

bad? Is it going to destroy us or not? Is

16:25

it going to like replace workers or not? It's here.

16:28

It is here. And so now the question

16:30

is, is how do we use the technology

16:32

in a way to help

16:35

people, to preserve jobs, right?

16:38

To solve COVID, cancer, climate,

16:40

right? To do good things. Not

16:44

having access to paid leave is a

16:46

major driver of women leaving the workforce

16:48

or downshifting. And so like

16:50

if I can actually navigate having time

16:52

off, money in my pocket, the resources

16:54

I need maybe to hire a care

16:57

worker or to get sorted, right?

16:59

I'm going to stay in the workforce. So

17:01

what's the bigger picture here? Where

17:03

do you hope paid leave.ai goes from here?

17:05

We're going to expand. The goal now is

17:08

I want to prove that

17:11

generative AI can actually increase the

17:13

uptake of benefits and figure

17:15

out exactly how to do that. So

17:17

that means I got to have a handful of governors

17:19

that are partners so we could work

17:21

with the Department of Labor to understand what are

17:24

the pain points, is our tool solving for those

17:26

pain points, and now what's the uptake of benefits

17:28

now that we have this tool? I'm

17:31

noticing this trend in how you're talking about

17:33

things. I think one of the things people

17:35

think about AI is like that it is

17:37

the solution in itself. The

17:39

product, the AI, the chatbot is

17:41

the endpoint. You seem to

17:43

be talking about it in that way. You seem to

17:46

be talking about it as this is

17:48

the next step in a journey towards other

17:51

things. Absolutely. I think it's like a

17:54

tool, a friend, a helper. I see

17:56

this from an activist perspective. My sole

17:58

slave. our focus is to get paid

18:00

leave in child care passed. And

18:03

so I'm thinking about all the different ways, all

18:05

tools that we can have to do that. Part

18:09

of why I think this got so much attention, it was unexpected.

18:11

It was an unexpected use

18:13

case of generative AI. And so

18:16

I think as we're looking at what

18:19

are the use cases of generative AI, go

18:22

to the unexpected, go to the most

18:24

vulnerable. Like the next place I want to go

18:26

is like, how am I helping military vets access

18:29

their benefits? How am I helping

18:31

people who need food stamps access their

18:33

benefits? How am I helping people on

18:35

Medicare access their benefits? Who's the most

18:37

vulnerable? And how do we build, you

18:39

know, AIs for

18:42

those communities to

18:44

help them change the

18:46

quality of their lives? That's

18:48

where we need to begin. The

18:51

Future of Everything is a production of

18:53

the Wall Street Journal. This episode was

18:55

produced by me, Charlotte Gartenburg. Thanks for

18:57

listening.

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