The Business Case for AI in HR · This slide deck provides a summary of the content of the IBM...

The Business Case for AI in HR

With Insights and Tips on Getting Started

IBM Smarter Workforce Institute

© 2019 IBM Corporation

This slide deck provides a summary of the content of the IBM Smarter Workforce Institute report, The Business Case for AI in HR With Insights and Tips on Getting Started.

Use the download link right to view the full report.

http://ibm.biz/AIHRbizcase


“This report tells the story of what’s possible and

how to get there, with specific examples showcasing

what we’ve done at IBM, and practical tips to help

others embark on their AI journey in HR. And, as I

witness the benefits first hand, I couldn’t be more

optimistic about the possibilities that lie ahead.”

Diane Gherson Chief Human Resource Officer, IBM


The Business Case for AI in HR

• What is AI?

• Study research method

• AI across the employee lifecycle

• Demonstrating a return on investment

• Societal considerations

• Five steps to start your AI in HR journey

http://ibm.biz/AIHRbizcase© 2019 IBM Corporation

What is artificial intelligence?AI understands, reasons and learns

Artificial intelligence (AI):

• Encompasses areas such as machine learning and cognitive computing

• Simulateds human intelligence behavior in computers

AI uses:

• Visual perception

• Natural language processing

• Speech recognition

• Speech-to-text conversion

• Language translation

• Tone analysis

• Etc. …


Research method

• In-depth structured interviews with senior HR executives responsible for bringing AI to HR at IBM

• Interview participants - depth and breadth of expertise:

• Talent acquisition

• Testing and selection

• Learning and development

• Engagement and culture

• Compensation and benefits

• Performance management

• Talent management

• Employee and labor relations

• General HR

• Analytics

• Computer science

• HR technology


AI adoption across the talent lifecycle

–


Deployment of AI in HR can occur

across the entire talent lifecycle

Employee

Manager

HR practitioner

Watson Candidate Assistant

Watson Recruitment

ChatbotsYour

Learning

Skills Inference

Sentiment Analysis

Cognitive Talent Alerts

Cognipay

Watson Career Coach


IBM Watson Candidate Assistant

• Chatbot discussions + CV upload

• Insight into company culture

• Jobs recommended that fit skills and experiences

• Impact:o 86% of prospective candidates engage to ask

questions or search jobso 96% continue engagement with Watson after

job match is delivered

AttractCandidate experience

Benefits

• Better match job seekers to opportunities

• Enhanced candidate experience

• Higher conversion rates from exploration to job application

• Improved employer brand

AI Solution

• Chatbots that interact using natural language processing, with resume/CV upload capability

• Provides immediate answers to questions, insights about company culture, and recommended job matches


IBM Watson Recruitment

• Top candidates surfaced quickly

• AI-generated success profile — eliminating human bias —to score applicants based on their predicted success

• Urgent requisitions given high priority

• Adverse impact analysis and mitigation strategies

• Interview guides

Hire Recruiter Support

AI Solution

• Recruiting AI software to quickly surface the most qualified candidates for the most important jobs

• Skills-based matching and prediction

• Bias detection and mitigation

• Social media insights for customized communications

Benefits

• Improved productivity - fill open jobs quickly with better quality hires

• Higher quality candidates progress through pipeline

• Open jobs prioritized and filled more quickly

• Bias in hiring decisions mitigated for increased diversity


EngageEnhancing motivation

AI Solution

• Talent alerts notify managers of recommended people-related actions, e.g., promotion readiness

• Engagement analysis provides real-time insights on employee perspectives, allowing for timely action

Benefits

• Improved employee experience and engagement

• Policies and practices that better meet the needs of the workforce

• Improved productivity and retention by surfacing and addressing issues in real time

Talent alerts• Notifications for manager decision support; letting managers know if someone

is ready for promotion or likely to leave• Examples include readiness for promotion and actions to increase retention

Engagement analysis• Analysis of social content, survey comments and other internal text sources

(all within the company firewall)• Top issues surfaced and alerts sent to managers to help them address issues

real-time and amplify good news


RetainSmarter compensation planning

AI Solution

• AI-powered decision support tool optimizes numerous data inputs to recommend salary increases

• Informs managers’ decisions, and learns from the actual decisions made by managers to improve future recommendations

Results

• Increased manager productivity by reducing hours spent gathering and analyzing information

• Improved employee satisfaction and retention through better compensation transparency

• Optimized compensation budgets

IBM’s AI Compensation Planning Support Tool

• Helps managers avoid underweighting or overweighting critical data points

• Reviews dozens of internal and external data points in making recommendations

• Managers can override AI recommendations about any employee, and the system learns from these overrides to improve


DevelopPersonalized learning

AI Solution

• Open platform for anywhere, anytime learning

• Uses AI to curate and recommend learning content based on role, function, skills and learning history

• Content channels for easier learning selection

Results

• Accelerated acquisition of business-critical skills to aid competitive performance

• Optimized learning budgets through prioritization of content based on usage and outcome data

Your Learning• Personalized digital marketplace for learning (Netflix-like)• Connects content, learners looking for content and reporting capabilities for

stakeholders• Includes learning chatbot to explore content• Impact:o Visited by 98% of IBMers every quartero Accelerated skill acquisition


DevelopSkills inference

Benefits

• Accurate and efficient skills profiling to aid workforce planning and skills optimization

• Reduced hours spend manually completing, reviewing and updating skill inventories

• Gaps in mission-critical skills identified for intervention

AI Solution

• Tool infers skills by scraping the internal digital presence of employees and surfacing the inferences for validation

• Aggregates data at business unit and geographic levels for gap analysis and intervention planning

AI skills inference• Skills information scraped from internal digital presence of employees• Data can come from sources such as resumes, sales information, and

digital badges• Employees efficiently review the auto-generated skill profiles • Inferences estimated to be 85-95% accurate• Thousands of hours saved previously spent completing skills inventories


GrowCareer development

AI Solution

• AI-based advisor that brings the benefits of career guidance to all employees

• Provides personal guidance on near-term and longer-term opportunities, and learning recommendations to close skill gaps

Benefits

• Employees matched to open positions

• Improved employee engagement and retention through increased opportunities for growth and career mobility

• Improved productivity through faster time to assimilation and quicker time to fill open positions

IBM Watson Career Coach

• Virtual assistant learns employees’ preferences and interests through conversational chat and integration of historical information

• Makes recommendations for employee potential next job opportunities

• Advises on future career navigation


ServeAI for 24/7 employee interaction

AI Solution

• AI-based assistants (chatbots) that understand natural language and interact with users in human-like conversations

• Provides real-time answers at any time, day or night

• Continually learns and improves

Benefits

• More efficient, consistent and always-available way to answer employee questions on HR topics

• Cyclical high-volume processes and year-round 24/7 queries supported for enhanced employee experience and productivity

• Optimized HR budgets through automation of routine tasks and shifting to more strategic work

Chatbots

• IBM has deployed a range of chatbots, supporting everything from annual processes (e.g., benefits enrolment, performance reviews and compensation planning) to always-on, year-round support for HR queries 24 hours a day, seven days a week

• Chatbots provide accurate answers quickly, whenever support is needed

• The automation of routine activities provides support at scale while freeing up time for more complex challenges and strategic HR work


Tips for successful adoption of AI in HR

Don’t wait for a perfect solution

Ensure transparency

Empower don’t replace

Consider language &

culture

Design each app with other apps

in mind


ROI for AI in HR adoption

–


Framework for demonstrating AI return on investment

• Start with desired outcome of the AI implementation

• Connect HR metrics to financial metrics

• Look for converging lines of evidence

• Time to impact depends on complexity, nature of outcome, and build vs. buy:

o Chatbots can be built and deployed in less than 4 weeks

o Off-the-shelf AI solutions can see results in 3 to 6 months

o Achieving quick results requires a mindset change and a focus on design thinking and agile working

o Some outcomes require time to manifest

Outcome Measures

e.g., influenced revenue

HR Metrics

e.g., skill breadth & depth

Outcomes Produced by AI

e.g., personalized learning

1

2

3


Examples of benefits and metrics

Application of AI in HR Example Expected Benefits Example Outcome Measures

Enhanced candidate experience

Efficient and effective recruitment

• More informative communication

• Better match of job seekers to roles

• Candidate conversion rate

• New hire productivity

• Better prioritization of job requisitions

• Accelerated time-to-hire

• Accurate assessment of diverse candidates

• Identification of most qualified candidates

• Skill shortages / unfilled vacancies

• Average time to fill open positions

• Selection ratios of minority / majority candidates

• New hire productivity


Examples of IBM HR outcomes

• New hire chatbots answer 700+ questions every day (and are available all day, everyday)

• Skills inference technology saves thousands of hours previously spent completing skills inventories

• 3x higher conversion from exploration to application with Watson Candidate Assistant

• Watson Recruitment generated 55% screening process efficiency gain according to recruiters

Overall, in HR in 2017 alone, IBM realized $107 million in savings as a result of AI


Societal considerations

–


AI and jobs

• Is AI replacing jobs?

… jobs will be impacted, but details are hard to predict

… historically, tech innovations often lead to job changes – not specific to AI

• What do we know?

… some roles will disappear, some will be created, and potentially all will change

• What will be going away?

… rote, routine job components that can be automated

• What jobs are being created in HR?

… Talent scientists, talent influencers, designers, user experience experts, learning scientists

Further reading: McKinsey (2017) Jobs Lost, Jobs Gained: Workforce Transitions in a Time of Automation



AI, diversity and bias

• AI in and of itself is judgment neutral

• AI recommendations and outcomes are dependent on:

o Who’s training it

o How it’s being trained

o What data it’s trained on

• AI technology can be used to reduce bias or, if we aren’t careful, reinforce it

• How can we mitigate bias?

o Diversity of thought in the creation of AI apps

o Be careful in use of historical data for predicting success

o Test for bias in datasets as well as model output

o Use an application like IBM’s Adverse Impact Analysis

Build in fairness as a feature, and ensure transparency

Further reading: https://www.linkedin.com/pulse/how-ai-can-address-bias-hr-why-matters-aarti-borkar/

5 steps to start your AI in HR journey

–


5 steps to start your AI in HR journey


“It is important not to use AI to instruct the

actions of a manager. You should share the results

of the analysis and let them still make the

decision. Their knowledge about the employee,

their empathy, their knowledge of how a team

operates is critical to making optimal decisions.”

Amy Wright, Managing Partner Cognitive Talent and Performance, Global Business Services, IBM


Download the report: http://ibm.biz/AIHRbizcaseView the interactive version of the report: http://ibm.biz/AIforHR


http://ibm.biz/AIHRbizcase

http://ibm.biz/AIforHR

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