Article: Unplugged 3: Narelle B unpacks the future of HR with AI and the need for human-centered innovation

Employee Relations

Unplugged 3: Narelle B unpacks the future of HR with AI and the need for human-centered innovation

Narelle highlighted that AI is driving rapid change, evolving talent needs and the employee experience, emphasizing HR's role in helping employees adapt to these shifts.
Unplugged 3: Narelle B unpacks the future of HR with AI and the need for human-centered innovation

The role of Human Resources (HR) has dramatically evolved over the years. No longer simply focused on managing people, HR now plays a pivotal role in driving strategic business outcomes. One of the most powerful tools that have been transforming HR in this new landscape is artificial intelligence (AI). To explore the impact of AI on HR, People Matters Unplugged season 3 invited Narelle B, a seasoned HR leader with over 20 years of global experience, renowned for her transformative work in organisational leadership, inclusive culture, and agile talent strategies. In this insightful conversation, Narelle delves into how AI is reshaping HR, how it can be harnessed to optimize business functions, and how HR leaders can balance human authenticity with the growing presence of digital innovation.

The AI-driven transformation of HR

When it comes to AI’s impact on HR, Narelle emphasized that AI is not just a passing trend—it's a revolutionary force that is changing how businesses operate and HR professionals perform their roles. "AI is a catalyst that is reshaping the way HR functions in real time," she said, highlighting that its role is integral to evolving HR strategies. For Narelle, AI has transitioned from a futuristic concept to an essential tool for HR teams striving for efficiency and strategic outcomes.

One of the most profound changes AI has brought to HR is in its ability to accelerate strategic decision-making. Narelle explained how AI allows organizations to process and analyze vast amounts of data at a speed and scale that humans cannot replicate. "AI gives us data and insights at a speed that we didn’t have before, allowing us to predict trends, identify gaps, and optimize workforce planning," she shared. This ability to quickly extract and synthesize data enables HR leaders to make more informed and timely decisions that are crucial in the fast-paced business environment.

Her organization, for example, has embraced AI tools such as Copilot on a large scale. This tool has automated numerous administrative and operational tasks, which has not only streamlined processes but also made them more meaningful. The efficiency gained from automation frees up time for HR professionals to focus on strategic, high-impact initiatives. "The real value of AI is in simplifying the operational side of HR, allowing HR teams to spend more time on value-creating activities," Narelle explained.

The challenges of AI: Adapting to rapid change

While AI brings undeniable benefits, it also poses challenges. Narelle acknowledged that AI is driving change at a pace never seen before, and with this change comes an evolution in the skills and talents required. "The talent needs are evolving rapidly, and so is the employee experience," she said, underscoring the importance of HR professionals helping employees adapt to these technological shifts.

Narelle urged that HR leaders need to take a proactive role in this transformation by encouraging employees to embrace AI. "Don't ignore AI, don't leave it in a corner," she warned. "The opportunities will be limited for those who don't get on board." Employees need to not only learn how to use AI tools but also understand their potential to enhance their work. For HR leaders, this calls for continuous learning and adaptability to stay ahead of technological trends.

The HR Leader's Dilemma: Balancing Tradition with Innovation

One of the central themes of Narelle’s conversation was the need for HR leaders to balance their traditional responsibilities with their role in leading digital transformation within their organizations. "It’s like any other transformation," she explained. "You need to incorporate a digital mindset, be efficient, and adapt as technology evolves." This ongoing transformation requires a shift in HR's approach, from purely human-centered functions to integrating technology as an enabler of greater business value.

To help HR professionals navigate this transition, Narelle recommended cultivating a "gaming culture" within HR teams. In a playful but effective manner, HR teams should experiment with AI tools and explore new ways to leverage them. "HR teams need to play with these tools, experiment, and discover how to make them work for us," she said. A gaming culture fosters curiosity and a willingness to learn, ensuring that HR professionals stay engaged and ready to explore the ever-expanding potential of AI.

Ethics and Transparency in AI Implementation

As AI continues to permeate various facets of HR, the conversation also turned to the ethical implications of using AI in people management. Transparency and ethics, according to Narelle, are paramount when implementing AI systems. She highlighted the importance of conducting regular audits of AI tools to ensure their fairness, transparency, and lack of bias. "AI is a support tool, not a replacement for critical thinking and human leadership," Narelle stressed. HR must work closely with legal departments to ensure that AI tools align with the organization's values and legal standards.

A striking example that Narelle shared was the contrasting outcomes generated by two different AI tools when analyzing the same job description. This discrepancy, she explained, illustrates the importance of transparency and regular checks to verify that AI tools are functioning as intended. The risk of bias or incorrect outcomes could lead to serious issues, particularly in recruitment and talent management processes.

"AI can only work as well as the data that goes into it," Narelle noted. She cautioned HR leaders to be mindful of the potential for bias in AI algorithms and stressed the importance of combining AI’s data-driven insights with human judgment to ensure the accuracy and fairness of decisions.

Continuous Feedback: AI’s Role in Enhancing Employee Experience

Another fascinating aspect of Narelle’s discussion was how AI can be used to enhance employee experience through real-time feedback. AI’s ability to gather information from multiple digital systems enables HR professionals to continuously monitor employee morale, engagement, and satisfaction. "AI can gather data across systems and provide real-time insights into how employees are feeling," Narelle explained.

However, Narelle emphasized that AI should not be the sole decision-maker in assessing employee sentiment. "AI can give us a lot of information, but it needs to be combined with human judgment," she advised. The quality of the information fed into AI tools is crucial for their effectiveness. Inaccurate or incomplete data could lead to misinterpretations of employee feedback. HR leaders must be vigilant and ensure that AI tools are providing accurate reflections of the employee experience, augmented by human insight and empathy.

One innovative suggestion Narelle offered was using AI tools to analyze an individual's own emotional state. "Use AI tools to test your own mind-set and see how well the tool works," she said. This concept can provide insights into how well AI systems are performing and can serve as a valuable learning tool to assess their accuracy and impact on HR processes.

The Road Ahead: What HR Leaders Should Do in 2025

Looking toward the future, Narelle offered a key piece of advice to HR leaders preparing for the challenges of 2025. "Start using AI tools, stop thinking they don't apply to your role, and challenge the status quo," she urged. According to Narelle, HR must not shy away from integrating AI into their practices but should actively explore its full potential. The key is to remove low-value work and automate routine tasks, freeing up HR professionals to focus on creating value for the organization and its employees.

This shift is not about replacing the human element in HR, but rather about leveraging technology to enhance human capabilities. AI, when used correctly, enables HR professionals to focus on the strategic aspects of their roles, such as talent development, leadership, and organizational culture.

As People Matters Unplugged Season 3 dives "From Inspiration to Action," we focus on turning strategic insights into tangible HR outcomes. Stay tuned for episodes that shape the future of work.

 
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Topics: Employee Relations, #Artificial Intelligence, #HRTech, #HRCommunity

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