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How Banning AI Hurts Your Business

May 1, 2023

6:00 AM

By OrgChart Team

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Editor’s Note: This article is part of a series by OrgChart, focused on how human resources professionals and leaders leverage artificial intelligence. View the full series here.


Your Human Resources Team Needs Artificial Intelligence

AI is undeniably transforming the business landscape, but has it touched yours? Companies adopting AI see significant improvements in operations, talent management, and business intelligence.

As Nithya Das, former chief legal officer of Olo, pointed out, banning AI technologies in the workplace is like “banning email, or Google search, or a reticence to using the Google enterprise suite of products. These are tools that are going to become part of the way people work.” As Diane Gherson, Chief Human Resource Officer at IBM, attests, your employees are likely already using AI behind the scenes, or they will be soon. It’s time you acknowledged and navigated this change.

Related content: AI Policy Template for HR Leaders

Yet, some organizations have banned AI as a policy, oblivious to the substantial loss in potential growth and opportunities. Notably, human resources departments that shy away from AI are missing out on a revolution in people management for fear they can’t strike the balance between security and innovation with this new technology.

Related content: The Potential of AI in HR

If you’re a leader who’s hesitant to jump on the AI bandwagon, here are some ways your current no-AI policy might hamper your business.

Limited People Data Analysis

In the digital age, businesses produce and manage more data than ever. Manually analyzing this sheer volume of data is impossible, and it often leads to inaccuracies and overlooks valuable insights. AI, on the other hand, can process enormous amounts of data swiftly and accurately. It can reveal hidden patterns, identify gaps, and provide predictive analysis, significantly aiding decision-making and strategic planning.

Loss of Business Intelligence

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Data is the new oil. This translates into business intelligence. AI-powered analytics can yield deep insights into your workforce – uncovering patterns, predicting trends, and enhancing decision-making capabilities. Without AI, you are not fully using the data at your disposal. You might make decisions based on gut feelings or outdated data, leading to inefficiencies, misjudgments, and missed opportunities. As Lance Eliot, a global AI expert and Forbes columnist, suggests, “firms that forsake the benefits of generative AI are hamstringing the employees that want to save the company time and money by leveraging generative AI.”

Impaired Employee Morale on Human Resources Teams

A primary advantage of AI in HR is its ability to automate mundane and repetitive tasks. This frees your HR staff to focus on more meaningful, high-level tasks, improving employee morale. Moreover, AI-powered HR platforms can provide a more personalized employee experience, from onboarding to learning and development, increasing employee satisfaction and retention.

Stifled Innovation

AI is a catalyst for innovation. By leveraging AI, HR departments can rethink traditional approaches to talent management, performance appraisal, recruitment, and more. AI can help identify skills gaps, predict future workforce needs, and support personalized learning and development plans. All of this can foster a culture of continuous learning and innovation. Without AI, your HR practices may become outdated and ineffective, hindering your company’s competitiveness in the rapidly evolving business world.

Reduced Competitive Advantage

AI provides a substantial competitive advantage. For instance, companies that use AI for talent acquisition can speed up the recruitment process, reduce biases, and ensure a better fit between the candidate and the job. Similarly, AI-powered predictive analytics can forecast employee turnover, helping HR teams devise proactive retention strategies. As Nithya Das argues, if a company doesn’t embrace this technology, its competitors surely will. A no-AI policy could mean lagging behind your competition, thereby affecting your overall business performance.

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The AI Revolution Is Here to Stay in Human Resources

Despite these compelling reasons, adopting AI isn’t without its challenges. Concerns around privacy, ethical issues, resistance to change, and potential biases are legitimate. However, these can be effectively addressed with the right policies, transparency, and the active involvement of human judgement.

Use AI to augment your operations and decision-making, but ensure the human element remains at the core of your processes. AI is a tool that should be used to enhance, not replace, the human aspect of HR.

Related content you might enjoy: Jobs AI Says It Can Do (& Ones It Shouldn’t)

For companies that have not yet embraced AI, it’s time to reconsider your no-AI policy. The risks of missing out on the myriad benefits of AI are too significant to ignore. As we move forward into a future increasingly driven by AI, businesses that adapt will flourish, while those who resist may be left behind.

It’s time to join the AI revolution. The sooner you incorporate AI into your HR strategy, the sooner you can harness its potential for business intelligence, data analysis, improved employee morale, increased innovation, and competitive advantage.

Make the leap into the future of HR with AI. It’s not about replacing the human touch but empowering it.

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