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How ChatGPT Will Impact HR Departments And Roles

Published over 1 year ago • 5 min read

The popular artificial intelligence chatbot, ChatGPT reached 100 million users in just two months of launching as professionals use it regularly to help them accomplish their jobs. The potential for ChatGPT to impact how we work and live is so big that Microsoft invested $10 billion in ChatGPT’s parent company OpenAI and has already integrated it into Bing, their search engine. And, in response there are already a lot of competitors, including Google Bard. Between Buzzfeed replacing 12% of their workforce with it, and judges using it to make court decisions, the impact of ChatGPT is growing rapidly and can’t be ignored. I believe it will impact every single industry, company, department, and job in one way or another moving forward. Nearly one-third of U.S. white-collar workers have already used or integrated it into their everyday work.

ChatGPT is a language model developed by OpenAI that uses advanced artificial intelligence and machine learning techniques to generate human-like text. It was trained on a large corpus of text data, allowing it to understand and respond to a wide range of questions and prompts. ChatGPT matters because it represents a major step forward in the development of AI and machine learning technology. Its ability to generate human-like text with remarkable accuracy and consistency has wide-ranging implications for many professions like HR.

By using ChatGPT, HR can improve employee productivity while reducing costs. According to a study conducted by Deloitte, companies that use AI-powered systems, including ChatGPT, can see an improvement in employee productivity by up to 40%. ChatGPT's ability to provide instant support and information can help employees complete tasks more efficiently, freeing up time for more strategic and value-adding activities. ChatGPT can help HR departments save money by automating repetitive and time-consuming tasks, such as answering common questions from employees. A study by Accenture estimates that organizations could save up to 60% on operational costs by using AI-powered systems like ChatGPT.

ChatGPT can be integrated into chatbots, virtual assistants, and customer service platforms to provide instant, personalized support to employees. Its ability to understand natural language and respond to a wide range of questions makes it well-suited for tasks such as answering frequently asked questions, providing product recommendations, and resolving employee issues.

Here are some HR-specific applications of ChatGPT that you can implement:

  • Data management: ChatGPT can help HR with data entry, employee records management and generate reports. This allows HR to not only have access to the right information, but be able to organize it and interpret it to make better and more efficient decisions for their organizations.

  • Employee Assistance Programs (EAP): HR can use ChatGPT to provide 24/7 support to employees with personal or work-related problems, such as stress, mental health, and work-life balance. ChatGPT can provide personalized support, information, and resources to help employees manage their issues.

  • Recruitment and talent Acquisition: HR can use ChatGPT to provide instant answers to candidates' questions about the company, job requirements, and the application process. ChatGPT can also assist with pre-screening candidates by answering frequently asked questions and helping to identify the most qualified candidates. A study by HBR found that organizations that use AI in the recruitment process see an improvement in candidate quality by up to 20%. In addition, ChatGPT can be used to create job descriptions and conduct initial interviews using specific questions to evaluate candidate responses, both of which save recruiters hours of time.

  • Employee onboarding: One of the leading predictors of employee tenure and productivity is an onboarding process. ChatGPT can provide new hires with information on company policies, benefits, important contacts, and other details that could answer most questions they would have. A lot of onboarding programs are very inefficient and are tedious from both the new hire and HR perspectives. By automating using ChatGPT, information is organized and centralized, so it saves HR from having to answer the same questions repeatedly.

  • Employee retention: It can be used to analyze employee sentiment and provide insights into potential issues that they have that could lead to higher turnover. By using this data, companies can tweak their employee experience to increase retention.

  • Employee training and development: HR can use ChatGPT to provide on-demand training and development opportunities for employees. ChatGPT can assist with training by answering questions, providing resources, and offering guidance on specific topics.

  • Performance evaluations: Both managers and employees dislike going through the performance review process. ChatGPT can be used to generate performance evaluations based on data input such as an employee’s job responsibilities and accomplishments.

  • Employee engagement and feedback: HR can use ChatGPT to collect and analyze employee feedback on a variety of topics, such as company culture, management, and work-life balance. ChatGPT can also assist with employee engagement by providing information and resources to help employees feel more connected to their work and the company.

ChatGPT can provide HR departments with an efficient and cost-effective way to support and engage employees. Its ability to provide personalized support and information in real-time can help HR better meet the needs of their workforce and improve overall organizational performance. But, in its early stages, it has limitations in understanding different queries, bias in data, lack of emotional intelligence and it only has a knowledge base of research and events up to 2021.

With that being said, there are several reasons why HR departments should be concerned about the use of ChatGPT in the workplace, which include:

  • Elimination of jobs: As ChatGPT continues to automate and improve HR processes and administrative tasks, it’s quite possible that HR departments will downsize. These tasks include updating documents and staff records, legal compliance, reviewing company policies and creating reports.
  • Legal and ethical issues: ChatGPT's ability to generate large amounts of data and information about employees raises legal and ethical concerns around privacy, data protection, and information security. HR departments need to ensure that the use of ChatGPT complies with relevant laws and regulations, and that employees' personal information is protected.
  • Bias and fairness: ChatGPT is trained on large amounts of data, which may contain biases and stereotypes. HR departments need to be aware of these potential biases and ensure that ChatGPT is not making unfair or discriminatory decisions in areas such as recruitment, employee promotions, or performance evaluations.
  • Accuracy and reliability: While ChatGPT is designed to provide accurate and reliable information, it is not infallible. HR departments need to critically evaluate the information provided by ChatGPT and ensure that it aligns with the company's values and policies.
  • Employee acceptance and trust: The use of ChatGPT may raise concerns and questions among employees, who may be wary of interacting with an AI-powered system. HR departments need to ensure that employees understand the benefits and limitations of ChatGPT and are comfortable with its use in the workplace.

HR departments need to consider the legal, ethical, and social implications of using ChatGPT in the workplace. They must also be diligent in evaluating the accuracy and reliability of the information provided by ChatGPT and work to build employee trust and acceptance of this technology.

Despite the potential risks, ChatGPT has the potential to transform the HR function in organizations by automating repetitive tasks, improving the employee experience, and enhancing HR departments' ability to deliver value to organizations. HR departments that embrace this technology will be well-positioned to support their organizations in a rapidly changing business environment.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

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