How AI is Reshaping Human Resources in the Public Sector
Eleanor Hecks is a senior HR and business writer at Designerly Magazine. After growing up with parents who both worked in the public sector, Eleanor is passionate about specifically applying her insights to those in the government and education professions. You can connect with her on LinkedIn or follow Designerly on X for business and design insights.
Artificial intelligence is transforming HR in the public sector. Government HR is increasingly integrating these technologies and is providing several enhancements to its processes. Yet, while AI comes with several benefits, it also has a few downsides. As AI continues to permeate various facets of HR, understanding its impact is crucial for anyone aspiring to join the public sector.
The History of AI in Public Sector HR
AI has been making its way into public sector human resources for some time now. At first, the government used simple computer systems to track employee records and handle payroll. As technology improved, these systems began to improve, too. HR personnel could store data in the Cloud and adopt SaaS (Software as a Service) platforms to personalize the employee experience.
Experts predict the global market for HR technology will grow from $40.45 billion in 2024 to $81.84 billion by 2032 at a compound annual growth rate (CAGR) of 9.2%. With the push towards AI, more governments see the value of investing in advanced tech. It is changing how the public sector operates, making it smarter and more connected than ever.
The Latest Developments of AI in HR and the Public Sector
One way HR integrates AI in the public sector is by using GenAI (generative AI). Generative AI impacts HR functions like job description creation and application screening. It is reducing the workload for HR while maintaining a ‘human-in-the-loop’ approach to ensure humans can still make decisions.
GenAI is the latest addition to the lineup of automation tools. What used to take hours to complete a task now takes just minutes, persuading more users to adopt these technologies. In 2021, nearly half of survey respondents who work in the government sector stated they have used intelligent automation tools or plan to implement them soon.
AI is starting to integrate seamlessly with existing HR systems, allowing managers to produce strategies that optimize workforce management. For instance, if HR wanted to improve the screening process of applications, managers could streamline it using AI to identify candidates that meet specific role requirements.
Benefits of AI in Government HR
AI has the potential to transform how public sector organizations manage and support their workforce through several key advantages:
Automation and Efficiency
AI automates time-consuming tasks, reducing the time HR spends on certain activities. The more time one spends on a task, the higher the chance of an error. It helps HR personnel to avoid mistakes and prevent errors that could lead to security breaches.
For instance, about 99% of cyberattacks rely on humans to perform an action, such as clicking on malicious links or downloading compromised files. By automating routine tasks, AI reduces human error by monitoring network activities and detecting unusual patterns.
Improved Recruitment Processes
Another advantage of this technology is improved recruitment. AI enhances its processes using advanced algorithms to analyze job applications quickly and accurately. It helps HR teams find the most suitable candidates with greater precision. As such, public sector agencies can fill positions with the right talent and remain productive.
AI systems are complex and challenging to integrate into existing HR systems.
ELEANOR HECKS
Bias Reduction
Approximately 60% of employees have experienced or witnessed favoritism in the workplace. However, AI can reduce this number by preventing biases in processes such as promotions and recruitment. These systems can remain objective and assess skills and qualifications, supporting fairer decision-making processes.
The Existing Challenges of AI
While AI offers numerous benefits to HR departments in the public sector, it also presents challenges that require careful management.
Fairness
One of the primary concerns with AI is fairness. When improperly designed, AI systems can increase biases. This happens when you train algorithms on biased historical data or lack diversity in input data. Therefore, public sector companies must evaluate data that could potentially cause this. They can achieve this by conducting randomized field experiments to determine whether the data is out of place.
Technical Challenges
AI systems are complex and challenging to integrate into existing HR systems. They are also costly and often have issues with compatibility between AI tools and older systems. However, the public sector can overcome these issues by ensuring these tools integrate seamlessly before investing in them.
Transparency and Accountability
AI technologies can sometimes be “black boxes,” where the decision-making process is not transparent. A lack of transparency can make it difficult to understand or challenge AI decisions. Before public sector companies invest in AI, they must explore whether the developer has deployed mechanisms that ensure accountability in AI-driven decisions.
Improving HR in the Public Sector With AI
As time progresses and AI systems evolve, you will likely see a higher integration of these systems within HR and the public sector. While AI will enhance operational efficiency, it will also create a more responsive workforce. For public sector organizations, their success will come from a place of embracing these innovations. The future is promising and proactive adaptation will be essential for capitalizing on its full potential.
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