Most firms now use AI in HR processes, with human sign-off required 85% of the time: Survey

Most companies in Singapore now employ artificial intelligence in their human resource (HR) procedures, although humans still approve the majority of decisions, according to a Singapore National Employers Federation (SNEF) survey. The survey, which was conducted in June and July and involved 1,000 employers, revealed that 85% of AI use cases in HR required human confirmation before the final decision was made.

These use cases mostly involved routine or high-volume administrative tasks such as resume screening and skills assessments. In the remaining 15% of cases, AI made the decision without human intervention. Employers typically designate someone, such as the head of HR or a supervisor, to step in if necessary to modify or reverse AI-generated decisions.

Large organizations were more likely to use AI in HR functions, with 81% of firms with more than 200 employees doing so, compared to 65% of SMEs with 200 or fewer employees. The level of oversight over AI use should correspond to the significance of the decision, with lighter monitoring for routine tasks and closer scrutiny for decisions that affect employees' livelihoods.

AI use in HR functions varies across an employee's lifecycle in an organization, being most prevalent in the early stages for tasks like resume screening and personalizing learning. It is lowest towards the end of the employment relationship when dealing with separation and exit matters. Employers are generally more likely to use AI in high-volume processes where it can complement, rather than replace, professional judgment.

Concerns about potential bias in AI hiring tools, such as those from Workday and Eightfold AI, were noted, but SNEF emphasized that employers are generally aware of relevant laws and their liability for discrimination offenses.