AI and Data Science Push the Redesign of HR

Amid talent scarcity, rising labor costs and other competing fiscal priorities, the role of the human resources (HR) department has expanded beyond traditional administrative tasks to encompass strategic decision-making based on data-driven insights. Andrés Gómez, Country Manager, Buk, breaks down the complexities of managing vast amounts of HR data and harnessing the power of artificial intelligence (AI) for strategic HR decision-making.

“While the COVID-19 pandemic helped accelerate Mexico’s adoption of HR technologies, there is still an echo of the traditional, status-quo mechanisms that reigned uninterrupted for decades. The challenge for current HR directors is to help all organizational leaders be on the same page concerning talent priorities, by extension, the technologies and funding needed to realize this vision,” Gómez told MBN. 

Many HR departments still struggle with limited capabilities when it comes to data analysis. HR professionals often face challenges in managing vast amounts of data, ensuring data privacy and security, as well as leveraging data analytics to inform strategic HR initiatives. This lack of data maturity and analytical skills can hinder the ability to generate actionable insights and make informed decisions, leading to missed opportunities and inefficiencies in HR processes. Moreover, as organizations increasingly rely on data-driven decision-making to gain a competitive edge, HR's limited capabilities in data analysis can result in a significant disadvantage, impacting talent management, performance evaluation, workforce planning and overall organizational success.

Gómez explained that AI comprises algorithms that can think and act by themselves. Although it may seem to be a new topic, AIs have been used by different platforms for a long time. AI will not replace workers, says Gómez, but will displace those who do not adapt to its use. According to Gómez, 93% of tasks performed by HR professionals are repetitive, taking away time that could be spent with employees. This is where AI falls short, as it cannot engage in interpersonal communication. “AI will not eliminate jobs because humans have creativity, imagination and emotions crucial for the HR department," said Gómez.

Furthermore, technology is becoming cheaper every day, and settling for the status quo by not implementing these new technological tools means missing out on the inevitable benefits that technology will bring to the sector. “Do not settle for the status quo, be curious,” Gómez emphasized.

While Buk is a technology-driven venture that advocates for the use of AI, its main value proposition is to enable human resources personnel to spend less time on computers and more time interacting with workers, he added.

Although Gómez recognizes the benefits of AI, he acknowledges that not everything can be digitized. Therefore, human personnel must use these tools to complement their work with the increasingly necessary soft skills. He encourages HR professionals to trust their instincts and exercise discretion over decisions made by AIs, as this is HR’s main value. “AI can help HR executives by making the recruitment process more streamlined, dealing with repetitive tasks, such as CV analysis, payroll calculations and initial interview processes," said Gómez.

According to Gómez, 72% of enterprises use cloud storage, posing a challenge for data privacy protection. AI is expected to create 58M jobs in the next four years. Gómez also acknowledged Mexico's potential and the technological gap between the country and the US. HR professionals can benefit from implementing technological tools as they can make data-driven decisions while also using their instincts to discriminate against AI outputs.