How generative AI can help your business

Generative AI has the potential to enable labour productivity growth of 0.1 to 0.6% annually through 2040, according to research from McKinsey. The findings also show that generative AI could transform 60-70% of the time people spend working. This may take many years to come to fruition, however, the opportunity for UK businesses is huge, especially when you consider that automation is already contributing £14 billion to the UK’s monthly business revenue by making business processes swifter and more efficient. 

AI holds huge potential for driving a positive employee experience that is vital not only for employee engagement and retention but also for the productivity and profitability of the organisation. In light of this, what strategies can HR leaders employ to maximise AI’s impact on the employee experience? How can they make the best use of it to retain a happy and productive workforce that drives revenue growth? 

Alleviating AI fears in the workplace

According to research, 62% of UK employees fear that more jobs will be lost to automation than gained, and reports show that AI has the power and ability to replace the equivalent of 300 million full-time jobs. However, AI excels in certain tasks, whereas human rational judgment reigns supreme for others. To alleviate employee fears, HR teams should reassure them that AI aims to enhance productivity and job satisfaction rather than replace human roles. 

In recruitment processes, candidates might be anxious about AI’s influence on selection, with research revealing that this approach does not always lead to unbiased decision-making. HR teams must therefore diligently monitor AI’s impact, ensuring fairness and equity in the process. 

Employees might also feel overwhelmed by rapid changes and harbour concerns about data privacy, especially when it comes to sensitive HR data. HR teams must treat these concerns with openness and respect and clearly communicate the role and benefits of AI, to foster a positive perception amongst employees. 

In light of these considerations, how can AI enhance the human aspect of the employee experience?

Enhancing the employee experience 

When it comes to employee experience, AI presents various avenues for improvement:

• Personalised Search: AI enables employees to discover tailored content with speed and ease, and receive customised responses to their queries.
  
• Faster and Streamlined Processes: AI speeds up task completion, easing complexities and enhancing workflow efficiency
  
• Bespoke Learning and Development: Through predictive analytics, AI identifies skill gaps, offering intelligent learning resource suggestions.
  

Transforming HR efficiency

For HR teams, embracing AI gives them more time to concentrate on driving a positive employee experience. AI-enhanced software can transform HR teams’ efficiency and productivity in a number of ways:

• Efficient Recruitment Processes: Automating processes alleviates administrative burdens, reducing the administrative burden on HR teams and minimising human errors. Intelligent onboarding enables a smooth and seamless experience for new hires.
  
• Virtual Assistants and AI Support: The global virtual assistant market is projected to reach $51.9 billion by 2028, growing at a CAGR of 28.5%. Recognising AI's prowess in administrative support, HR teams can leverage this technology to enhance HR interactions and transform employee engagement. 
  
• Smart Analytics and Data Security: HR teams can use AI-driven analytics to identify trends and gather insights that can help to refine their talent acquisition approach and performance management.
  

How to encourage employee engagement

HR teams should ensure employees feel fully involved in the AI integration process. Pulse surveys work well for actively engaging employees by finding out their opinions and worries. They should also be fully transparent about how the business is going to use AI and should regularly communicate with teams about the latest developments and integration plans. 

Embracing AI to change working life for the better

Staying abreast of the swift advancements in AI within the workplace remains a continuous challenge, with more than a third (36%) of UK workers saying they feel overwhelmed by the rate of progress. Business leaders must therefore work hard to ensure employees are fully involved in AI integration and make sure they’re supported every step of the way. With a well-thought-out integration process, businesses can embrace AI as a collaborative tool, to improve the employee experience, and bolster productivity, retention and the overall profitability of the organisation. By streamlining tasks, refining processes, and fostering learning and career growth, AI has the promise to significantly improve working life for the better. 

Duncan co-founded Applaud and has served as its Chief Technology Officer and as a member of our board of directors since February 2010. Prior to founding Applaud, Duncan spent 10 years advising organisations on enterprise HR technology deployment, and before that worked in Oracle's own HR Development team building out their core HCM products.