“The success of any organization depends on how effectively it combines people, process and technology intelligently to deliver transformational value.”

That’s according to Raj Sharma, Global Managing Partner of Growth and Innovation at EY, in an exclusive, in-depth interview on how AI is impacting the world of HR.

EY is going ‘All In’ on AI with a $1.4 billion investment to ensure its 400,000-strong global workforce is equipped and ready for the future of work, driven by AI.

He explains that HR leaders will be “critically aware” that merging AI into HR administrative functions will “benefit and improve” the overall employee experience: “In turn, this provides more capacity, more time and budget, and more accurate information for decisive people management.”

That’s not to say there is a single immutable truth for HR leaders when it comes to achieving these outcomes via AI, particularly given the importance of aligning HR goals with overall strategic objectives.

For those seeking the quick wins in the short-term, Sharma says the focus should be on “proving the value” before expanding the use of AI to more complex tasks, such as updating standard employee information, like address or emergency contacts, or automating repetitive tasks.

“Where it gets more fun for HR teams is utilizing AI in the hiring process,” Sharma

There are some fascinating ways you can use cognitive solutions to tap into more varied data sources that reveal insights into candidates so hiring teams can make more considered and effective talent decisions.”

Investing in skills and culture for a better future of work

Raj Sharma, EY Global Managing Partner of Growth and Innovation

Sharma states there are several technologies and skills that HR and business leaders should be investing “right now” to reap long-term benefits from AI.

However, he also says that leaders should strategically focus on areas that “not only maximize AI’s potential for today” but also ensure “sustainable adoption and alignment with organizational goals into the future.”

One of the key areas that HR leaders should already be aware of and working on is the critical importance of upskilling/reskilling the workforce as technological advancements disrupt existing roles and skillsets.

Sharma details that leaders need to develop and enhance AI literacy across the entire organization, ensuring that employees comprehend how AI is impacting and changing their roles.

Fundamental to this he explains is establishing “clear communication strategies that demystify AI” and emphasize how it augments, rather than replaces, roles.

“Across all levels it’s important to conduct trainings for AI-related skills such as data analysis, prompt engineering, ethical AI governance, and human-AI collaboration,” he adds.

“At the same time, HR teams need to equip leaders with tools and methodologies to manage cultural and operational shifts as AI is integrated.”

Managing the cultural shift that AI will cause within many organizations will not be a short-term project for leaders.

To do so, Sharma says fostering a culture of AI and human collaboration is central, emphasizing the value of “creativity and emotional intelligence” in tandem with AI capabilities, as well as developing inclusive AI strategies that mean all employees will benefit from its adoption, rather than “the risk of alienation.”

By taking a proactive role in these areas, HR leaders can drive the sustainable and responsible adoption of AI, ensuring their organizations remain competitive while supporting employees through the AI-driven transformation.”

Employee engagement can also be boosted at the same time by the adoption of AI tools that go beyond automating repetitive tasks.

Sharma highlights AI-driven chatbots for onboarding and personalized support for new starters, as well as AI that can analyze engagement data to “proactively address burnout and boost satisfaction, which will have a huge impact for HR teams.”

Leaders must be up to the task of getting AI right

Considering the depth and breadth of change AI can potentially bring to the workplace and workforce, understanding of the risks and ethics involved is also crucial for leaders.

Sharma explains that nearly seven in ten (69%) of organizations believe they need to learn more about the ethical and financial risks of AI, and that these considerations are “top of mind for clients I speak to.”

It is therefore paramount for HR leaders to prioritize the ethical use of data and to ensure compliance with global privacy laws and securing employee data.

“Teams should implement systems to detect and correct bias in AI models, especially in recruitment and talent assessments,” he details.

“Above all, it’s important to develop policies to document AI decision-making processes and ensure how AI is used is clearly communicated with.”

All of this means leadership cannot be complacent on any facet of AI and that HR teams – and the leaders within them – must be “seen as advocates” for adoption and be willing and ready to collaborate with other teams to embed AI into workflows, Sharma says.

This will mean HR leaders must facilitate internal partnerships across IT, operations and finance functions to align AI initiatives with the broader organizational strategies to stand a better chance at AI adoption.

Sharma adds this often means utilizing AI for specific tasks that “demonstrate immediate value”, such as sentiment analysis, personalized learning recommendations and predictive analytics for recruitment, talent management, and employee engagement.

Personally, I believe that clear purpose-driven leadership is essential to inspire teams to deliver exceptional services and create long-term value. The perception of what makes a leader has definitely changed over time, but at the core – for me – is integrity, courage and empathy,” Sharma explains.

While he believes these attributes to be “innate” in some leaders and “lacking” in others, Sharma details that there are strategies leaders can adopt.

“Against a backdrop of high demand for top technical skills to support the AI boom, these often overlooked ‘soft skills’ are critical in my mind,” he concludes.

“Empathy encourages leaders to understand and share the feelings of others, and build stronger relationships, which ultimately enhances team performance.”