Demystifying AI for HR: Five ways to address misconceptions 

The evolution from artificial intelligence (AI) to generative AI (Gen AI) has shaken the ground beneath our feet. We’ve embarked on the Fifth Industrial Revolution — but few feel prepared.

It’s clear that as competition tightens and the rate of change hits fast-forward, opting out isn’t an option. Yet even among the technology industry, most companies don’t feel their HR teams are AI-ready, and one-quarter have yet to start working with AI.1 Executives are acutely aware of this, with 53% believing their businesses won’t survive beyond 2030 without AI.2

Yet the gains they anticipate are clear: Almost half (47%) of the C-suite believes AI brings the most value through the augmentation of efficiency to increase productivity; 42% of HR leaders feel the same. But, as ever, it’s not just about quantity. The C-suite and HR also predict that AI will amplify human intelligence, contributing to higher-quality output (32% and 29%, respectively).

And so all eyes turn to HR to act as chief navigators, enablers and, in the not-too-distant future, stewards of humanity. The responsibility falls on HR’s shoulders to navigate this new world, yet many HR leaders will continue to have their own unanswered questions. Skill gaps remain persistent; attracting and retaining digital skills in HR is the number-one challenge facing the function today.

To achieve AI-driven transformation and build HR’s reputation as an AI champion for the business, we first need to come to grips with AI internally. And to do that, we’ll need to dispel some of the prevalent myths surrounding AI in HR — whether your own, your colleagues’ or those within the broader business (31% of employees are concerned about the rise of AI and its impact on humanity). The integration of AI into HR functions offers a profound opportunity to become more efficient, more accurate, more strategic — and most important — more relevant.

So, let’s bust some myths.

AI’s intelligence is on par with humans’

A common myth (and often the source of the fear surrounding AI) is that AI’s abilities will leapfrog our own. But there are clear limitations; its intelligence is dependent on the datasets we train it with.

Although AI systems can analyze data, recognize patterns and perform tasks (for example, natural language processing and image recognition), there’s no contest when it comes to intuition or understanding nuance in the way we humans do. That’s why skills such as analytical and creative thinking, empathy, and self-awareness are among the World Economic Forum’s top 10 skills of the future.

AI is inherently biased and unreliable

The belief that AI systems are inherently biased and unreliable is widespread. It’s true that Gen AI can plagiarize, create hallucinations or factually incorrect information, or draw the wrong conclusions. There’s also the question of how it may amplify preexisting human biases and the negative impact this could have on women and marginalized/minority groups in particular.

While it’s true that we shouldn’t take everything produced by Gen AI at face value, that doesn’t mean we should avoid it altogether. As long as the risks are effectively mitigated, the gains are undeniable: 53% of executives project that AI and automation will bring a 10%–30% productivity boost to their organizations in just three years. The biases and errors in Gen AI outputs typically come from issues in the data feeding the model. With the right employee training, hallucinations and errors can be spotted and corrected. 

Currently, one in five organizations provides no employee training on the proper use of AI, which will open them up to a kaleidoscope of risks. A further 23% of organizations implementing AI have no risk mitigation policies in place. By implementing mitigation strategies and promoting ethical AI design principles, organizations can build AI systems that are more fair, accountable, and reliable and build their employees’ critical thinking in the process. 

AI will take my job

Vague statements about AI destroying jobs contribute to the fear factor. We’ve seen a similar concern in our research, with 40% of employees believing AI and robots are dictating how they work. This is a challenge for businesses looking to make the most of a human–machine augmented future.

The World Economic Forum estimates that 23% of jobs will change by 2027, while 69 million will be created and 83 million eliminated. But, as with past industrial revolutions, this doesn’t necessarily equate to falling unemployment; the employment rate has historically risen in the wake of this “creative destruction.” As it stands, 60% of employees trust their employers to provide careers for them even if their jobs are eliminated. But trust is a fragile thing. It should be intentionally nurtured in the face of fast-paced change.

If we focus instead on how AI will change jobs, predictions suggest that 60% of all jobs have at least some tasks that could be automated, but only 5% are under threat of full automation.

As for HR, change is already in motion. More than one-third (36%) of HR leaders are creating new roles or teams dedicated to Gen AI. And while the rise of AI can feel like a big question mark about the future, most executives (63%) believe advances in AI and automation are changing the profile of a successful HR professional, not erasing the role altogether.

AI can work on HR tasks independently

Some conversations surrounding Gen AI paint a utopian vision in which the pressures of modern-day work are gone thanks to the technology shouldering the burden for us. There’s a belief that we can leave it to problem-solve, create and analyze for us, and it will achieve all that at a quicker rate than we could.

Although Gen AI can and should take the pressure off HR by taking on the more mundane tasks on your to-do list, it should never be used without human contribution and oversight. 

Gen AI is typically designed for specific tasks (for example, forecasting potential skill gaps, enabling 24/7 support for employees) and excels within those parameters. But it can’t transfer its “intelligence” across different domains or contexts, and it’s only as good as the data it’s trained on. So take the ideas it shares as thought-starters, suggestions or recommendations that can aid your decision-making rather than giving Gen AI the “final say.” The C-suite already sees the potential here, with 54% of C-suite leaders planning to invest in AI-driven talent insights for strategic workforce planning in 2024.

The real benefit Gen AI brings to HR is the gift of time. With fewer admin-heavy tasks on HR’s plate, teams are freed up to focus their brainpower on value-adding, strategic work that will have the biggest impact on business success. 

Five ways to address AI misconceptions head-on

The misconceptions buzzing around Gen AI can lead to distrust and disengagement among employees. Although a healthy dose of skepticism is needed for the sake of risk mitigation and critical thinking, we can’t allow that to discourage us from experimenting with the technology. Gen AI will only get bigger and better — which will lead to more questions. HR has a unique chance to grasp this opportunity with both hands and become digital leaders within the business.

Here are five ways you can start to deconstruct the misconceptions that might currently be holding you and your HR team back:

Conduct HR-specific training sessions and workshops to address misconceptions head-on and explore Gen AI’s capabilities and limitations. Useful topics for AI novices might include how Gen AI works, use cases for HR, best practices and ethical considerations.

AI should be value-adding but can feel unwieldy for anyone who fears the evolution is outpacing their own skill set or understanding. In a recent survey of European and UK companies, 33% reported being in the “pre-strategy” phase of educating and driving awareness of AI.3 In the US, only 20% of employees see HR as a digital leader, yet this doesn’t hinder HR’s influence over AI adoption. Following a HR leader discussing the impact of AI on their role, 71% of employees report trying out AI in their job.4 To help employees feel more in control, companies should set clear guardrails and develop a framework for human–machine teaming so Gen AI complements and enhances human expertise. This framework can include clear definitions of roles and responsibilities for AI systems versus HR professionals and define the level of human oversight required when Gen AI is in play.

To mitigate risks, HR teams should consider implementing ethical guidelines and regular bias monitoring for Gen AI applications. Without these, the business is vulnerable to risks resulting from human error or ineffective oversight of AI adoption. Protocols for AI systems auditing, compliance with data privacy regulations and ethical standards are all essential. This work can seem unwieldy, so creating a taskforce with governance responsibility is a sensible option. Getting familiar with best practices for AI and building risk vigilance both within HR and across the wider business will be critical, and is even more pertinent for those with European operations in light of the EU AI Act. Consider, too, who is responsible for AI failures (given that its success hinges on what we humans “feed” it) and how this is managed. 

AI implementation and adoption should consider not only technical challenges but also communication challenges. Why? Because its success hinges on trust and transparency. Companies need to bridge the knowledge gap between AI experts, stakeholders and end users to better address fluctuating trust levels. To help with this, create internal case studies that share examples of how colleagues are using Gen AI to spark inspiration for anyone in the business who’s feeling unsure of the benefits.

Before jumping in with both feet, launch a pilot program in advance of a full-scale implementation. Roll out a chatbot to support employee onboarding for a small test group, or use it to consolidate siloed data to aid your people analytics. Whatever you’re testing, start with noncritical tasks to reduce the risk, embed feedback loops into the process and make iterative improvements.
To grasp the AI opportunity with both hands and embrace their role as digital leaders, HR will need to uproot these prevalent myths within their teams and across the wider business. Addressing misconceptions head on naturally paves the way for new solutions and smarter ways of working, two necessities for businesses to keep pace with today’s rate of change.

References

[1] Mercer x Comptryx. 2024 Spot Poll: AI Usage and Implementation in the Technology Industry.

[2] Except where noted, all data are from Mercer's Global Talent Trends Study 2024, available at mercer.com.

[3] Mercer x Comptryx. 2024 Spot Poll.

[4] Mercer. HR Technology Impact on the Workforce 2024 Survey, March 2024.

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