Generative artificial intelligence (GenAI) is making waves in the realm of people analytics, transforming how HR departments extract and utilize insights from vast collections of HR data. Traditionally, people analytics software required substantial data literacy, often necessitating the help of data scientists. However, GenAI is democratizing access to data, making it easier for HR professionals to interpret and act on insights without deep expertise in data analysis. This shift is significantly enhancing HR efficiencies, enabling better decision-making processes and fostering a more data-driven culture within organizations.
Simplifying Data Access with Natural Language Processing
One of the most significant advancements brought by GenAI is its ability to respond in natural language. This eliminates the need for specific jargon or formatted queries, making data access more intuitive. For example, Sameer Raut, the vice president of HRIS at Sunstate Equipment, used a GenAI-driven chatbot to inquire about the reasons for hourly employee terminations over the past year. Within moments, he received a detailed response, showcasing the technology’s efficiency and user-friendliness. This capability addresses a substantial pain point for HR leaders. 39% of HR leaders struggle with limited expertise in people analytics.
By incorporating large language models (LLMs) into analytics platforms, GenAI has significantly enhanced natural language processing (NLP) capabilities. This allows CHROs to ask complex queries in simple, conversational language and receive accurate, relevant results promptly. The advances in NLP have made the analysis of HR data faster and more intuitive, allowing HR leaders to delve deeper into workforce trends without being bogged down by technical complications. Moreover, the ability to interact with analytic tools in a straightforward and human-like manner opens up the data to a broader audience within the organization, facilitating more comprehensive data-driven strategies.
Automating Manual Processes for Improved Data Accuracy
GenAI is also automating many manual processes within people analytics, improving data accuracy, reliability, and organization. Enhanced data cleansing and augmentation, along with the integration of disparate HR data sources, contribute to making HR data more comprehensive and insightful. This automation reduces the time and effort required to maintain data quality, allowing HR professionals to focus on strategic decision-making. For instance, routine tasks such as data validation, error correction, and updating records, which were typically time-consuming and prone to human error, are now being handled efficiently by GenAI.
Several well-known analytics software providers, including Visier, Microsoft Power BI, Tableau, Qlik, and Sisense, have incorporated GenAI tools into their platforms. These tools bolster usability and enable HR leaders to extract valuable insights effortlessly. For instance, Raut describes using Visier’s GenAI tool, Vee, to analyze workforce costs, headcount trends, termination patterns, and hiring gaps. The tool’s real-time responsiveness is a significant advantage, allowing HR professionals to obtain immediate answers and share data insights with non-HR stakeholders. This enhanced interactivity and automated processing ensure that the data drawn is always relevant, accurate, and up-to-date, making real-time data analytics a new standard in HR departments.
Democratizing People Analytics for Non-HR Users
GenAI is lowering the barrier to entry for non-HR users, democratizing people analytics. Embedding these tools within widely used platforms like Slack and Microsoft Teams extends access to line managers, who historically might not engage with specialized analytics software. Lydia Wu, the former senior director of people strategy and operations at Panasonic Energy of North America, asserts that GenAI can help CHROs achieve more with fewer resources, enhancing analytics outcomes without relying heavily on data scientists. This broadening of access to crucial insights empowers a range of professionals within an organization to leverage data, promoting a culture of informed decision-making and collaboration.
Stacia Garr, co-founder and principal analyst of RedThread Research, supports this view. She notes that while some platforms’ NLP capabilities are still developing, others are making significant strides in handling complex data queries and providing nuanced sentiment analysis. This democratization allows more stakeholders within an organization to leverage data insights, fostering a data-driven culture. As more non-HR users engage with these tools, they become more confident and competent in using data to guide their decisions, which enhances productivity and innovation. The scalable and user-friendly nature of GenAI tools means that data-driven decision-making can extend beyond the HR department and infuse across various teams and levels of the organization.
Real-Time Insights and Enhanced Communication
One of the critical benefits of GenAI-driven chatbots is their ability to provide real-time insights during meetings and brainstorming sessions. This immediacy fosters more productive and timely interactions, as HR professionals can instantly access and share relevant data without delay. Additionally, GenAI tools can aid in creating visually compelling reports and presentations quickly, enhancing CHROs’ ability to communicate data insights effectively to executive audiences, such as CEOs and CFOs. The ability to present complex data in an understandable and engaging format not only supports decision-making but also helps ensure organizational strategies are aligned with data insights.
Jeremy Shapiro, assistant vice president of HR and workforce analytics at Merck, cautions that while current tools are helpful, they are not yet indispensable. He likens the ongoing evolution of GenAI to the early stages of a long journey, suggesting significant potential for future development. This perspective underscores the importance of continuous improvement and adaptation in leveraging GenAI for people analytics. As GenAI technology continues to mature, it is expected that the tools will become increasingly essential, offering even deeper insights and more advanced functionalities that further improve HR practices and overall business outcomes.
Addressing Data Security and Privacy Concerns
Despite the promising advancements, there are risks associated with GenAI tools, particularly concerning data security and privacy. A significant concern among CHROs is the potential for sensitive or proprietary information to be inadvertently exposed. Shapiro underscores the importance of robust data protection measures, advocating for “entitlement management” systems to control user access based on roles and business needs. Effective data management policies and practices must be in place to ensure that only authorized personnel can access specific data segments, thereby protecting against unauthorized use and potential data breaches.
Wu echoes this sentiment, highlighting the necessity of understanding how analytics providers train their LLMs to avoid risks related to data exposure. Visier’s approach of training its model only on user queries, rather than customer data, is presented as a safer alternative that mitigates some of these risks. This approach ensures that sensitive information remains protected while still leveraging the benefits of GenAI. By maintaining a high level of data security and ensuring transparent data practices, organizations can harness the power of GenAI responsibly, safeguarding their valuable information assets.
Mitigating Hallucinations and Inaccuracies
Generative artificial intelligence (GenAI) is revolutionizing people analytics, reshaping how HR departments gather and use insights from extensive HR data repositories. Traditionally, people analytics software demanded a high level of data literacy, often requiring the expertise of data scientists to interpret the complex data. However, GenAI is breaking down these barriers, democratizing data access, and making it significantly easier for HR professionals to interpret and act on valuable insights without needing deep knowledge in data analysis.
This technological advancement is not just a minor upgrade—it’s a significant shift that is greatly enhancing the efficiencies within HR departments. HR professionals can now make more informed decisions, streamline their processes, and foster a culture that prioritizes data-driven strategies. This helps organizations not only make better decisions but also creates an environment where data literacy is widespread among all employees, not just those with specialized skills. Consequently, GenAI is positioning itself as a critical tool for modern HR operations, setting a new standard in the industry.