Chatbot Technology and its implications for HR

18 Jun 2023

Jonathan Cumberbatch

The dramatic rise in global prominence of artificial chatbot technologies (and primarily that of ‘ChatGPT’) recently has significant implications for the field of human resources.

Originating in the early 1990s, artificial chatbot technologies now have the potential to revolutionize the way Human Resource (HR) departments operate. These technologies use natural language processing and machine learning to simulate human-like conversations with employees, candidates, and other stakeholders. This can improve the efficiency and effectiveness of HR processes, as well as the employee experience.

One of the most significant implications of chatbot technology for HR is the automation of repetitive and time-consuming tasks. For example, chatbots can be used to answer frequently asked questions from employees and candidates, such as information about benefits and company policies. This can free up the time of HR staff to focus on more strategic and value-added activities, such as talent management and employee development. Additionally, chatbots can be used to automate onboarding processes, by providing new hires with information about the company and their role, and guiding them through documentation and compliance requirements.

Another important benefit of chatbot technology for HR is improved employee engagement and self-service. By using chatbots, employees can access information and services at any time and from any location, without having to wait for assistance from an HR representative. This can increase employee satisfaction and retention, as well as reduce absenteeism and turnover. Moreover, chatbots can also help to provide a consistent experience to every employee by answering their queries in the same way, reducing biases and improve on the perceived fairness.

Chatbot technology can also help to improve the candidate’s experience and increase the efficiency of recruiting processes. By using chatbots to screen and pre-qualify candidates, HR teams can save time and reduce the administrative burden of the hiring process. Additionally, chatbots can provide candidates with quick and easy access to information about the company and the job, improving their understanding of the role and increasing their likelihood of accepting an offer.

Also, chatbots can also help improve compliance and reduce risk in HR processes. For example, chatbots can be used to quickly provide employees with information about their rights and responsibilities under labour laws, helping to ensure compliance with legal requirements. Additionally, chatbots can be used to provide employees with confidential and anonymous reporting mechanisms regarding sensitive matters for example, harassment and discrimination.

However, with these potential benefits, chatbot technology may also pose some challenges and risks. The first one is that of data privacy and security; since chatbots handle sensitive employee and candidate data, it is important to ensure that this data is protected from unauthorized access and breaches. Another potential challenge is the risk of job loss as a result of automating repetitive and time-consuming tasks. This can lead to resistance from employees and their representatives and could create a negative impact on employee morale and engagement. Furthermore, when the HR staff are not well-trained in the use of chatbot technology, it may result in a lack of trust from employees and candidates, and cause hesitation to adopt the technology.

In conclusion, chatbot technology has the potential to revolutionize the way HR departments operate by automating repetitive and time-consuming tasks, improving employee engagement and self-service, and increasing the efficiency of recruiting processes. However, it is important to manage the potential challenges and risks that is associated with it to ensure that the implementation is successful.

The Human Resource function remains the main support of organizational culture, ethics and employee satisfaction, and as with previous technological innovations, chatbot technology should be seen as a supplement and not as a replacement.

More Reading