The proliferation of Artificial Intelligence has led to a surge in job opportunities. Specifically, the boom after the launch of OpenAI’s ChatGPT rocketed generative AI into the radar of many people who weren’t aware of AI. Since then, time has proved that the implementation of AI in the workplace aids in augmenting staff performance, streamlining human resource operations, enhancing employee experience and promoting cross-team collaborations.

Sumeet Doshi, the Country Manager at UKG India, talks about a study conducted by UKG, a leading provider of HR, payroll, and workforce management solutions, which closely examines how closely AI has become entwined in the work lives of employees and employers.

What do you think are the key benefits of integrating AI into HR management?

In today's ever-evolving landscape, use of artificial intelligence (AI) at workplace is increasingly being used to augment human capabilities, change work patterns, collaborate, and innovate. The growing influence of AI on organization’s operations is evident from the surge in the number of employees using AI tools to execute everyday tasks. As per a recent survey by UKG, in India, 91% of employee’s trust the content generated by AI tools. From automating to streamlining business processes, the acceptance of AI has potential to impact diverse aspects of workforce management as well.

With the modern workforce seeking a better life-work balance, the provision of flexible working hours has become an indispensable need from a mere want. For organizations, where employees work around shift assignments, manual scheduling becomes very cumbersome and challenging. This is where AI-powered scheduling systems play a crucial role in accommodating last-minute absences and rescheduling requests without compromising operational efficiency. Integrating AI into HR Management will not only make work easier and streamlined but will also lead to significant productivity gains, thereby making employees happier and businesses better.

To what extent do you think AI impacts job displacements?

History is a perfect example of how the future will seem with the emergence of new technology. The wide adoption of AI across organizations has resulted in ongoing debates about whether AI will eliminate jobs or create more. AI certainly has the potential to impact job displacement in certain industries and roles. However, in the context of workforce management for large manufacturing companies, AI can enhance job roles and create new opportunities without leading to any significant displacement.

How do you enhance workforce planning using AI?

Meeting the evolving needs of business operations has become even more challenging with a pool of diverse and multigenerational workforce. As businesses expand, managing the growing workforce requires a systematic approach that addresses the unique preferences of individual employees. In sectors such as retail and manufacturing, among others, where a significant proportion of employees are frontline employees including blue-collar, contract, gig etc., monitoring employee shifts and managing payments has become increasingly complex. Additionally, as industry faces fluctuating demands and varying staff requirements, e.g., during festive seasons and promotional events, implementing advanced workforce management solutions becomes imperative. This is where AI steps in as a game changer.

How can we encourage employees to harness AI for productivity?

As per the recent survey by UKG, 95% of Indian employees believe that AI in the workplace can improve their quality of life, is suggestive enough of the interest employees have in leveraging AI for enhancing their ‘work’ experience. According to the same study, 73% employees in India report that their organizations employ AI in the workplace, but only 47% employees understand how it’s used, leading to hesitant adoption. This means that to encourage use of AI and harnessing it to its maximum potential necessitates the establishment of trust.

It's our responsibility to ensure that employees do not feel threatened by the prospect of AI taking on their jobs. Organisations need to actively communicate with their employees on how they plan on implementing strategies to ensure that AI complements existing roles and enhances job functions. Secondly, the concerns around transparency in AI usage and protection of personal data requires companies to establish clear policies and practices regarding the ethical use of AI, clearly outlining how data is collected, processed, and utilized.

How can we ensure transparency in AI-based decision-making?

While the need for transparency in AI models used by corporations is paramount, it is necessary to acknowledge the reality of the fact that AI systems can be extremely complex at times. Often, even people directly working on building the AI models do not have a complete purview into its inner workings due to the sheer amount of data points that are fed into it. These black box models, impenetrable to human oversight, creates a critical accountability gap that can potentially lead to unintentional biases and ethical issues becoming embedded in the systems, impacting decision-making processes.

Organisations, therefore, need to have a multifaceted approach that includes the development of explainability tools, regular audits, and adherence to industry-wide standards for ensuring that AI models are transparent. At UKG, we believe that responsible and ethical use of AI requires human review and recognition of its inherent limitations, as well as the promise it holds.

Do you think automation will likely put pressure on average wages? If so, will it be different for advanced and developing economies?

On a global scale, executives at companies using AI today estimate that 70% of their total workforce will use AI to automate or augment some of their job tasks by 2028, according to the UKG study. However, the effect of automation will definitely be experienced differently in advanced economies, when compared to developing ones.

In fact, in countries such as India, where the labor market is characterized by a substantial presence of manual and service-oriented occupations, the impact of automation might be more transformative than disruptive. While certain routine tasks may be automated, the shift could potentially lead to a reconfiguration of job roles, emphasizing higher-skilled positions that require a blend of technological proficiency and human ingenuity. AI driven automation will reduce risks of non-compliance, optimize manufacturing costs, and fuel innovation in IT solutions. This transformative effect could position India at the forefront of global competitiveness.

Workers will need different skills to thrive in the workplace of the future. How far do you think Indian employees have acquired those skills? What would be your advice to those who want to develop such skills?

In India 93% of employees have embraced the help of AI in creating original content. The resiliency and adaptability of the modern workforce cannot be understated, whether it's adjusting suddenly to a remote workplace due to a global pandemic, fitting their lives around a hybrid model of work, or staying on par with advancements in technology. So, there is a sense of overall optimism as Indian employees brace themselves to leverage AI in the workplace, and continue to reskill and upskill themselves so as to find their footing in a rapidly evolving landscape. Corporations can actively help their employees with workshops and training programs to ensure that they acquire the necessary expertise for seamlessly integrating AI into their workflows.

People wanting to equip themselves with such skills can take advantage of the resources provided by corporations, opening avenues for personal and professional growth in the realm of artificial intelligence. This proactive approach not only benefits individuals in enhancing their skill sets but also contributes to the collective readiness of the workforce to be prepared for the challenges of today and lead in the innovations of tomorrow.