AI in HR
Opportunities offered by AI in HR
Recruiting
Artificial intelligence plays an important role in sourcing within personnel recruitment. Sourcing refers to the process in which employers identify and contact potential candidates who are suitable for open positions. AI searches large databases and online platforms to find potential candidates who meet the job requirements.
With the help of search algorithms, AI can analyze qualified candidates, their profiles and resumes, and verify their respective qualifications. AI is also capable of identifying candidates who are not actively looking for new career opportunities but are still highly qualified.
This technology revolutionizes talent search by automatically finding the most promising candidates who perfectly match the job requirements. It also enables job advertisements to be more precisely tailored to the advertised position.
Applicant Selection
With the help of AI-based platforms, applications are efficiently analyzed to identify applicants with the highest potential for company success. AI can sort CVs and applications through specific searches and filter out suitable candidates more quickly.
A major advantage is that AI enables a neutral and objective search for employees, which is tailored to the individual needs of the company.
Onboarding
A tailor-made introduction for employees and an efficient start in the company. With the help of AI, individual training materials and learning pathways can be created to ensure personalized training for new employees.
Chatbots and virtual assistants contribute to integration by providing information about the company, policies, and key contacts. The technology monitors progress and carries out performance assessments to ensure that new employees acquire the necessary skills.
Automating processes such as account creation and training scheduling saves time and resources. By continuously collecting feedback and making adjustments, the onboarding process becomes more efficient and effective, helping new employees quickly become productive and successfully integrate into the corporate culture.
With AI, training plans can be specifically adapted to the needs of employees, contributing to comprehensive integration and continuous development.
Performance Management
AI-based tools provide valuable insights into employee performance, enable targeted feedback, and help identify development opportunities.
Employee Retention
AI detects early signs of potential employee turnover trends and suggests personalized measures to increase employee loyalty, ensuring a long-term and fulfilling employee relationship.
Use of AI in Swiss Companies in the HR Sector
The integration of artificial intelligence (AI) in Swiss human resources is currently still limited. Around 8% of companies today use AI models and technologies in their HR activities. However, this reluctance does not reflect the potential that AI applications would in principle be capable of. Since AI could in principle be used throughout the employee life cycle, it is only a matter of time before AI dominates the HR department of every company.
Some major Swiss employers were asked about the use of artificial intelligence in recruitment processes. Swisscom, Coop and Nestlé are currently still opposed to the use of AI. Swiss Post states that it does not currently use artificial intelligence to select new employees but only uses technological tools such as applicant management systems. However, Swiss Post does not rule out modern options in general but rather emphasizes their increasing relevance in today's modern world and is currently carrying out a project for AI-supported screening in the concept phase. SBB then underlines that all applications from people are reviewed, except for class recruitments, where certain minimum requirements must be met. Migros also uses an applicant management tool, which, however, does not contain any AI-based ratings or classifications. It conducts time-shifted video interviews, which, however, do not analyze facial expressions, gestures, or voice. The only AI tool in Migros' recruitment process is the in-house chatbot “Mino” for finding apprenticeships.
AI Ethics Check for HR Applications
AI Ethics Check for HR Applications
Risks and issues when using AI in HR
Despite the many benefits that the integration of AI into the corporate structure can bring, some experts still have various concerns. Dependence on the use of AI can, of course, lead to an alienation of human and emotional intelligence. There are also certain risks with regard to data security and data protection when processing sensitive personal data.
Requirements for any ethics councils and clear guidelines for dealing with AI with regard to data security and privacy should definitely be guaranteed. It is also of the opinion that a comprehensive information and notification obligation should be required as part of the use of AI.
The focus should be on carefully considering the benefits and risks of using AI in human resources. Especially in view of the fact that in the coming period it will be hard to imagine life without the use of AI in all areas of companies, companies should not underestimate the incredible potential of digital technologies. Overall, the integration of AI has made human resource management a strategic and data-driven area that helps companies attract, develop, and retain talented employees over the long term.
Consideration of data protection law
Information requirements:
- Documentation of AI Systems: It is important that all algorithms and data sources used are documented in detail. This includes recording training data, decision logics, and data processing methods.
- Disclosure to Employees: Employees must be informed that AI systems are processing their data, and they must be able to understand how and why decisions are being made.
Transparency and traceability
Rights of those affected:
- Right of Access: Employees must have the right to access and review the data processed by AI.
- Right to Correction and Deletion: Employees should be able to correct or have their data deleted if it is incorrect or no longer relevant.
- Right to Object: There must be an option to appeal automated decisions, particularly if they have legal or similarly significant effects.
Automated decisions/automated decision making
- Using “Human in the Loop”: Automated decisions should be reviewed regularly by people to avoid inaccuracies and biases.
- Impact Assessment: The impact of automated decisions on the careers and well-being of employees must be assessed and minimized.
Data protection impact assessment
The full automation of employment decisions is limited. Automated individual decisions that have significant adverse effects are particularly problematic when selecting or evaluating employees and require higher transparency standards. Human involvement is mandatory when making significant automated decisions. In addition, it is still being discussed what to do if an AI is only preparing a decision.
- Conducting a Data Protection Impact Assessment (DPIA): Before implementing AI technologies, a DPIA must be carried out to identify and mitigate potential risks to employee privacy.
- Involvement of Data Protection Officers: Data protection officers should be involved in the entire process of evaluating and implementing AI systems.
Application of EU AI Regulation (AI Act)
- Classification of AI Systems: Determine which category of AI is relevant under the AI Act (e.g., high risk).
- Compliance with Specific Requirements: Systems that are rated as high-risk must implement additional security and compliance measures, including close review of data sources and algorithms.