Robots for hire? AI and your workforce
A recent report revealed that approximately 30% of UK jobs could be automated within the next 15 years. Anne Palmer asks: what does the growth of AI mean for HR and your workforce?
Whilst artificial intelligence (AI) may conjure up images of a distant futuristic society, it is fast becoming a part of everyday life, both at work and in wider society. The phrase was first coined as far back as the 1950s and encompasses a wide range of technologies, including
- voice pattern recognition
- driverless cars
- process automation
- 'chat-bots' and
- virtual assistants, such as Siri, Alexa and Cortana.
The future is closer than you think: Amazon has started testing its new drone delivery service – Amazon Prime Air – which aims to have deliveries on your doorstep within 30 minutes. Various autonomous vehicle trials are already happening in the UK, with the first self-driving cars on a public road being tested on a two mile route in Greenwich in April 2017. And these changes are not restricted to relatively mechanical tasks: software is being developed which can analyse CT scans, with an accuracy rate which outstrips the performance of human radiologists by 50%. And a Japanese insurance company has recently replaced a group of employees with technology which can calculate payments to customers, using a system which possesses cognitive technology that can 'think' like a human (albeit that final payments are checked by a member of staff).
Although these examples of AI technology are currently at the cutting edge and still far from the norm, they are indicative of a growing trend. According to a study published by Oxford University last year, all sectors will be affected by automation over the next twenty years, with 850,000 public sector jobs potentially lost by 2030. Another study, published by PWC in March 2017, found that around 30% of UK jobs are risk of automation by the early 2030s, with the highest risk of automation in transportation and storage, wholesale and retail, but with lower risk of job losses in health, education and social work. Research suggests that routine, mechanical tasks are at the highest risk from AI; whereas roles that require physical dexterity (such as preparing food) and / or 'human' characteristics such as care giving or critical thinking are at less risk from AI. It is thought that this could result in a 'hollowing out' of the labour market, with highly skilled employees at the top end of the labour market becoming even more valued and highly paid; and at the opposite end of the spectrum, a growth in low skilled, low paid, work which is not easily automatable – with a large gap in between. But how will the increasing presence of AI impact on HR and workforce law?
In terms of the tasks undertaken by HR teams themselves, it is the more administrative HR tasks which are most likely to be undertaken by AI. There does not appear to be any prospect, in the foreseeable future, of more complex, strategic HR decision making tasks becoming automatable. Neither it is likely to have an impact on tasks which require empathy, team working and intuitive thinking, such as conducting grievance investigations, dealing with absences or overseeing large-scale workforce change. However, if a wide range of staff functions are transferred to AI, there will be a corresponding reduction in the requirement for HR to deal with employee relations issues, because AI systems will not, for example, raise grievances or go on sick leave. A positive result of this for HR may be that it frees up time currently spent on routine tasks and employee relations issues, and allows the profession to re-focus time and energy on leadership and strategic work.
One routine HR task which may be transformed by AI is within the recruitment process, as technology is developed to undertake automatic sifts of CVs prior to interview. This particular example may be of benefit in terms of increased efficiency and bias elimination. The legal risks are likely to be low, provided that the CVs being scanned are retained only for that purpose and for a limited period of time. However, at the more sophisticated end of AI assisted recruitment, there may be a corresponding increase in legal risk. For example, technology is developing which will automatically 'scan' the internet for newly published material on candidates and will alert employers of a change that may make a (previously rejected) candidate of interest to their organisation. However, retaining individuals' data for this general purpose may fall foul of the restrictions on lawful processing in the Data Protection Act 1998. Increased use of AI analytics inevitably relies on a parallel increase in the use of stored data and 'big data'; which is diametrically at odds with the increasingly restrictive regulatory environment. This is set to become even more relevant when the General Data Protection Regulation comes into effect on 25 May 2018.
Whilst data protection issues raised by AI are a valid concern, the predominant anxiety around AI is whether it will cause widespread redundancies, as software takes over jobs undertaken by employees. Academic opinion on this question is divided. On the positive side, some point out that automation results in job shifts rather than job losses, for two reasons:
- new jobs are created developing and servicing products within and around the AI product itself; and
- increased productivity means that more wealth is created which is then spent on services which are not automatable.
For example, the introduction of motorcars caused a great deal of anxiety around the loss of horse-related jobs; but as these jobs declined, there was a corresponding increase in work around building and servicing cars, the development of motorways, motels and service stations.
On the other hand, some predict that this latest technological revolution is different from anything that has happened in the past, and that new software is reducing the need for workers at a faster rate than new roles are being created. At the moment, it is not clear whether it is the optimists or the pessimists who are right. But, either way, it is likely that employers will need to ensure that they have an agile workforce and flexible business model, in which employees can swiftly re-skill and transition into new roles. Although AI in the workplace is not be commonplace as yet, it is on its way and HR will need to be ahead of the curve. In order to be prepared for whatever type of change is to come, key workforce issues to consider will be
- up to date and flexible agile working policies and procedures, which will accommodate job design changes in response to new technology (please click here for our Agile Working Toolkit)
- facilitating access to training and development to so your workforce can adapt to changing technology and ensure that any skills gaps are filled in respect of tasks which are not currently automatable
- well drafted and carefully implemented redundancy and reorganisation policies, supported by clear communication policies
- strategic planning to encompass technological developments, efficiencies and any resulting cultural change.
Anne Palmer is a senior associate at Bevan Brittan. She can be contacted on 0370 194 8946 or This email address is being protected from spambots. You need JavaScript enabled to view it..
