5 Things Your Organization Must Know About Artificial Intelligence (AI)

Artificial Intelligence (AI) is rapidly becoming integral to modern workplaces, with studies showing a significant portion of the workforce already utilizing AI in various capacities. According to KPMG’s 2023 Trust in Artificial Intelligence report, one in two people are using AI in their work, reflecting its growing ubiquity. For HR and compliance professionals, understanding AI’s benefits, risks and best practices is crucial for guiding their organizations through this evolving landscape. Below are five essential things your organization must know about AI. 

1. AI is Transformational but Requires Careful Implementation 

AI has the potential to significantly transform business operations. According to KPMG’s global tech report of 2023, 57% of the 2,100 international business executives surveyed believe that AI, particularly Generative AI (GenAI), will be crucial for achieving their business objectives over the next three years. However, this transformative power demands careful implementation to avoid risks. 

Key Points: 

• Strategic Use: Align AI initiatives with business objectives to maximize benefits. Make sure employees understand how AI integrates with and enhances their roles. 

• Responsibility: Ensure responsible usage, aimed at mitigating potential risks such as data breaches and biases.  

• Monitoring and Evaluation: Constantly monitor AI’s impact and make necessary adjustments. 

Enable employees to understand both the technical applications and ethical implications of AI, laying a foundation for successful and responsible AI use. 

2. Ethical Considerations Are Paramount 

The responsible and conscientious use of AI can pave the way to a more productive organization. However, there are significant ethical considerations, especially in HR and compliance functions. Less than half of respondents in KPMG’s Trust in Artificial Intelligence report (2023) are comfortable with AI being used for recruitment, performance evaluation or employee monitoring. This discomfort signals a need for strong ethical guidelines. 

Key Points: 

• Transparency: Be clear about how AI tools are used, and the decision-making processes involved. 

• Fairness: Ensure AI applications are free from biases that could lead to unfair treatment of employees. It’s crucial that employees know how to identify and mitigate biases. 

• Consent: Obtain explicit consent from employees for AI-related monitoring and evaluations. 

Bias in algorithms can lead to unintended and unfair outcomes. Algorithms trained on biased data can perpetuate existing inequalities. Therefore, it is crucial to regularly assess AI systems for biases in decision-making processes. Relevant regulations include the EU’s AI Act, which aims to regulate AI applications, particularly those considered high-risk, and emerging laws in the US like the Algorithmic Accountability Act. 

3. Data Security and Privacy are Critical 

Uncontrolled AI usage can lead to severe data security and privacy issues. AI systems often require large amounts of data, some of which can be sensitive. Without proper safeguards, this data is vulnerable to breaches, which are of concern for compliance professionals tasked with ensuring regulatory adherence. 

Key Points: 

• Data Protection Policies: Tap into legal expertise to help review and implement robust data protection policies to safeguard sensitive information.  

• Access Controls: Restrict access to AI tools and datasets to authorized personnel only. 

• Regular Audits: Conduct regular audits to ensure compliance with data protection regulations. 

Ongoing education and access to legal expertise is essential to keep up with changing data privacy laws, such as the GDPR and CCPA, ensuring that employees are well-informed about the latest requirements and best practices. 

4. Training and Clear Guidelines are Essential 

Implementing AI responsibly means equipping employees with the knowledge and skills to use it effectively and ethically. This step is vital to avoid the risks associated with uncontrolled AI usage, including operational inefficiencies and legal issues. 

Key Points: 

• Training Programs: Implement a training program that educates employees about AI usage and its implications. These programs should be regularly updated to reflect evolving technologies and regulations. 

• Clear Guidance: Provide clear and practical guidance on AI best practices, rooted in solid legal expertise. 

• AI Policy: Adopt a formal AI policy outlining acceptable uses, responsibilities and a process for reporting when an AI tool is suspected of bias, inaccuracy or malfunction. 

Training should be seen as an ongoing process rather than a one-time event. Continuous learning ensures that employees remain current with the latest developments in AI technology and regulations, supporting a culture of continuous improvement in AI use. 

5. Organizational Culture Must Adapt 

The integration of AI within an organization requires a cultural shift. Employees need to see AI as a tool that complements their work, not a threat to their jobs. Furthermore, establishing trust and acceptance of AI systems is crucial for their successful implementation. 

Key Points: 

• Change Management: Foster a culture that views AI as an enhancement to human capabilities. Educational programs should aim to reduce resistance by highlighting the benefits and addressing any concerns employees may have. 

• Involve Employees: Include employees in the development and implementation of AI tools to gain their trust and acceptance. 

• Continuous Improvement: Keep refining AI systems based on feedback and evolving best practices. Ongoing education helps employees stay updated on the latest advancements and encourages continuous refinement of AI systems. 

Creating an adaptive organizational culture starts with educational programs that demystify AI, highlight its advantages and involve employees in the development process. 

Real-World Insights 

Workplaces globally are already using AI in a variety of ways. Here are a few examples: 

• IBM has implemented AI to support their HR department in managing vast amounts of employee data more efficiently. 

• Unilever has used AI for recruitment, significantly reducing the time spent on the hiring process while improving the candidate experience. 

• JP Morgan Chase employs AI to help with compliance by monitoring transactions and identifying potential fraud, showcasing how AI can support compliance efforts. 

However, with these advancements come challenges. AI systems must be regularly updated and monitored to ensure they are functioning correctly and addressing the needs for which they were designed. By tapping into legal expertise and providing ongoing education, you can help ensure that employees remain adept at managing these systems and understanding their ethical implications. 

Summary 

For HR and compliance professionals, understanding AI’s transformative potential, ethical considerations, data security requirements, the necessity for employee education and the importance of adapting organizational culture is crucial. Doing so can guide their organizations towards responsible and effective AI usage, enhancing productivity and achieving strategic objectives. Adopting best practices and setting clear ethical principles will enable employees to embrace and adapt to AI-driven changes confidently. 

AI is not just a technological tool but a societal shift in how organizations operate. HR and compliance professionals are at the forefront of this transition and have a vital role in ensuring their organizations use AI responsibly and effectively. Implementing legally accurate training and staying informed about regulatory developments will help ensure the ethical and effective integration of AI in the workplace.  

How Traliant Can Help 

Traliant’s AI in the Workplace: Acceptable Use of Generative AI Tools training is a 30-minute interactive course that explores the risks and benefits of using generative AI at work. Through real-life examples and realistic workplace scenarios, employees learn the five key questions they need to ask before using GenAI tools and understand what is considered acceptable and responsible use in a workplace setting. 

For more information on AI, download our report, “Unlocking AI: An Essential Guide for HR Professionals.”