The expansion of AI capabilities in HR platforms is challenging users to deploy these tools in a way that doesn't run afoul of the law or trust in their company.
AI is drilling deeper into every HR process, as shown at the SAP SuccessConnect conference in Lisbon this week. The conference detailed a range of new AI features, including new payroll inquiry capabilities enabled by SuccessFactors' use of SAP AI copilot Joule and AI features that recommend roles to candidates.
One new AI in HR capability that underscores SuccessFactors' approach is a text analyzer to check for biased HR documents, such as performance reviews.
"We're embedding business AI into the fabric of the application," said Dan Beck, president and chief product officer at SAP SuccessFactors, in an interview. "Anywhere in the system you have text, you can check it for bias, you can enrich it." He said it will suggest performance reviews and goals.
SuccessFactors plans to add 30 new AI in HR use cases or capabilities by mid-November. But AI tools aren't like any other tech upgrade. Ethical and legal issues accompany AI deployment, and the regulatory landscape is shifting rapidly, complicating the deployment of any AI tool.
The use of AI in HR faces a minefield of regulation and legal threats over potential bias and discrimination concerns. The Equal Opportunity Employment Commission has warned employers repeatedly of the risk of bias. The European Union has labeled AI's use in HR as "high risk," and in the U.S., many lawmakers in the states and in Congress are exploring regulations that could affect the use of AI in HR.
Losing sleep
Some users, well aware of what's ahead, are paying close attention to the regulatory landscape. It was a point made at the Gartner ReimagineHR conference this week in Orlando and during a separate webinar with SAP customers.
If there's a piece that keeps me up at night, it's making sure that we're able to live up to all of the expectations from all of the entities that put requirements upon us.
Robert ArbogastDirector of people systems and strategy, Timken
"If there's a piece that keeps me up at night, it's making sure that we're able to live up to all of the expectations from all of the entities that put requirements upon us," said Robert Arbogast, director of people systems and strategy at Timken, which makes engineered bearings and other industrial products at a SuccessFactors webinar.
To evaluate AI HR deployments, Lacey Huff, services director of human resources at Phillips 66, said the company created an internal AI governance board. The board includes representatives from information security, employee and labor relations, and the head of talent, she said.
"[The board] really vets a lot of the things that we're trying to introduce from an AI perspective," Huff said.
Huff explained, on a Gartner panel, that their review process addresses privacy, transparency and accountability, especially when dealing with sensitive data in HR applications. Although the board's monthly meetings can delay approvals, the team is evolving its processes to keep pace with rapid technological advancements.
SAP may be identifying specific AI use cases due to laws like Europe's AI Act, said Helen Poitevin, a Gartner analyst. The EU requires "very specific evaluations of risk for every single use case," she said.
Poitevin noted that many companies have AI ethics committees to evaluate risks. Vendors, meanwhile, are increasingly offering third-party certifications to demonstrate compliance with the EU Act.
Giancarlo Pala, global head of IT HR at Nestle, a multinational food and beverage company, said on the SAP webinar forum that AI must be addressed responsibly.
Pala said they consider ethical and legal obligations, data privacy and data retention in deploying AI. "That's not an afterthought -- that has to be on the forefront."
Patrick Thibodeau is an editor at large for TechTarget Editorial who covers HCM and ERP technologies. He's worked for more than two decades as an enterprise IT reporter.
