Focus article

Generative AI and Future of HR

Generated summary of People & Organizational Performance Practice. McKinsey&Co 

Generative AI is set to transform HR functions, impacting areas like recruiting and performance management. Experts discuss its potential and challenges in a McKinsey podcast.

A chatbot may not take your job—but it will almost certainly change it. Here’s how to start thinking about putting gen AI to work for you.
The document is about the impact of Generative AI on HR practices, specifically in the areas of recruiting, talent acquisition, and professional growth.

GEN AI: What's so different—and so disruptive

  • Generative AI, like ChatGPT, reached one million users in just five days after its November 2022 launch.
  • It is accessible to people of all backgrounds, enabling content creation from poems to essays.
  • OpenAI’s research indicates 80% of jobs could integrate generative AI, reshaping roles and skills.
  • Outputs range from text and images to audio, video, and code, though “hallucinations” may cause inaccuracies.
  • The focus should be on productive, safe use rather than limiting access.

What gen AI means for recruiters…

  • Generative AI enhances recruitment by refining job descriptions and personalizing outreach.
  • It helps managers craft job requirements faster, targeting essential skills.
  • Outreach automation improves communication with thousands of applicants.
  • It excels in large skill pools but requires validation for niche roles.
  • The technology shifts focus from credentials to skills, highlighting practical experience.
  • Balancing proprietary data with public sources is key to building comprehensive skill profiles.

… and what it means for professional growth

  • Generative AI supports career development by matching skills to roles and learning paths.
  • AI assistants can help employees explore job opportunities and select skill-building courses.
  • EU regulations mandate human involvement, but AI improves transparency in selection.
  • Research by Erik Brynjolfsson shows that generative AI boosts new call-center workers’ productivity.
  • AI accelerates onboarding, bringing new workers up to 80–90% proficiency.

What’s new for the performance review

  • Generative AI can draft performance reviews, reducing workload while preserving human insight.
  • It synthesizes feedback from multiple sources, supporting employee development.
  • Employees can use AI to map career growth and query success models.
  • Bill Schaninger stresses the value of consistent data entry for effective performance management.
  • Normative data integration clarifies performance benchmarks for better reviews.

Bias and other risks

  • Generative AI may amplify biases, such as demographic preferences in recruitment.
  • Risks include intellectual property issues and reduced creativity.
  • Leaders should address risks during design and manage role changes proactively.
  • Poor problem definition before implementation can undermine AI’s effectiveness.
  • Strong regulations and standards are essential to prevent misuse.

Preparing for the inevitable

  • Leaders must guide employees to adapt to generative AI, as 80% of roles may shift.
  • Generative AI presents opportunities for HR to streamline tasks and create new opportunities.

Vuoi maggiori informazioni? Contattaci ora!

Compila il modulo e il nostro team di esperti ti risponderà entro 24 ore.