How AI is transforming skill-building and talent management
Learn how to use advancements in AI to take skills-based strategies to the next level
2023 will go down in history as a banner year for AI innovation, thanks in large part to advances in generative AI. The beginning of the year was hallmarked by OpenAI’s launch of ChatGPT, which amassed over 100 million users in two months—with no signs of slowing down. In fact, Microsoft is planning to bring ChatGPT into its search engine and web browser, while Google is aiming to keep pace with its own conversational AI service called Bard.
As generative AI breaks onto the scene, a new generation of AI-powered HR tools is simultaneously gaining traction. These innovations come as HR leaders approach a critical turning point in their professional lives. While talent needs were once fairly predictable and jobs served as the dominant model for structuring work, today executives are beginning to embrace skills-based approaches designed to equip their organizations with the level of agility that our new working world demands.
HR leaders are now at the helm of reimagining the way their organizations work and proactively assessing emerging skill and talent needs to ensure their company is prepared to pivot at a moment’s notice. With this new set of challenges comes a new need for data-driven insights that will enable leaders to understand their supply of talent against market demands—which is where AI-powered HR tools come into play.
Since it’s virtually impossible for the human brain to process and juggle so many employee and skill-centric data points, organizations are turning to AI to harmonize and analyze this information and turn it into actionable insights that will inform their talent management strategy. These innovations present HR leaders with a clear picture of their talent landscape and shine a spotlight on the knowledge gaps that exist and the expertise that employees will need to hone next.
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3 ways AI can add value to your talent management strategy
While the number of use cases for AI in HR is still growing, here are a few ways that leaders can begin to harness these tools to upgrade their talent management strategies:
#1. Get an in-depth view of workforce skills
Traditionally, it’s been challenging for leaders to gain a bird’s eye view of workforce capabilities because skills information is typically siloed into a few different HR systems. Most taxonomies are also outdated, leading to talent strategies that may not address the organization’s actual needs.
Rather than settling for this subpar understanding of workforce skills, companies are harnessing AI-powered tools like Gloat’s Skills Foundation to gain visibility into all of their people’s capabilities. These systems are updated in real-time and pull from an employee’s LinkedIn profile or CV, in turn capturing the full range of knowledge and experience they’re bringing to the table. Organizations that use AI-powered skills intelligence tools can map out the skills and roles that are most crucial to their business, see where existing skills lie, and identify any potential gaps in knowledge before they snowball into bigger problems.
#2. Use AI to bridge talent gaps
Once leaders identify where talent gaps lie, they can harness AI-powered skills intelligence tools to overcome these shortages. Rather than overspending on hiring and recruitment to bring external hires into their organization, executives can use these systems to identify employees who can be upskilled or reskilled to move into high-priority roles within their organization. These tools also shed light on transferable skills that indicate that an employee from one team or department would be a qualified match for a job opportunity or project in an entirely different domain that managers may never have considered otherwise.
#3. Resource faster to accelerate innovation
When you need to move fast to launch a product, deliver against a priority, or mitigate a challenge, AI can help you reallocate talent efficiently to respond to these circumstances. Without full insight into the skills their people have, executives will struggle to find candidates with the capabilities and transferable skills needed to tackle various high-priority projects. AI makes it easier for leaders to pinpoint employees with the skills they’re looking for, streamlining the ability to spin up cross-functional teams or talent redeployments that enable their organization to respond to challenges more efficiently.
What potential risks should HR leaders watch out for?
Although there are plenty of benefits associated with AI-powered talent management tools, there are also a few considerations HR leaders must prioritize, including:
#1. AI may not always be the answer
As more new use cases for AI emerge, leaders are struggling to determine which are a good use of their time and investment—and which they should avoid. Paula Goldman, Chief Ethical and Humane Use Officer at Salesforce, predicts that executives are quickly becoming more strategic about their AI use, noting, “I think people are becoming smart about what these new tools are good for and what they’re not good for. I think we’re seeing the emergence of a set of norms and standards for how we interact with these tools responsibly.”
#2. Data collection concerns must be taken seriously
The ability to use AI ethically is reliant on feeding AI models data that is sourced responsibly. According to Goldman, data collection needs to be a top consideration for leaders who are thinking about implementing AI-powered systems. “We often have customers coming to us very excited about AI and we’re obviously very excited as well. But the first question needs to be ‘How is your data?’’ she explains. Leaders must ensure employees consent to their data being collected and that they understand how it will be used.
#3. Leaders can’t view AI as a cure-all
While some executives may be tempted to experiment with as many AI use cases as they can, experts like Goldman encourage leaders to take a more selective approach. She compares today’s AI to a “really good assistant”, noting that there are “…a lot of limitations, there are sometimes problems around accuracy and toxicity. But there’s no doubt that if you’ve read any number of headlines, there are also some serious workplace transformation issues we’re going to need to grapple with as a society.”
To find out more about how technological advancements are revolutionizing HR processes, check out our guide, Transforming talent management with ethical AI.
