Six Ways To Use AI (ChatGPT) To Solve the Labor Shortage In 2024 – Forbes

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(This article is part of a series on Artificial Intelligence for Board Members and Senior Executives.)
The global economic landscape continues to be unpredictable, and all industries, from technology to manufacturing to healthcare, face labor shortages that threaten to disrupt operations. Companies are grappling to find the talent they need. Artificial intelligence (AI) is emerging not just as a technological innovation but as a strategic tool that can help solve the challenge of hiring and recruitment.
Here are six ways AI is changing approaches to hiring and recruiting:
The greatest impact of all is the use of Generative AI to get more work done with fewer people. (See The Labor Shortage Is Killing American Manufacturing. Here’s How AI Can Bring It Back To Life.) Some areas that represent the greatest impact on enhancing productivity include:

Unleashing generative AI tools into the workforce means you may need fewer people.
Predictive analytics is at the forefront of digital transformation and a facet of AI proving to be a game-changer in workforce management. Take the case of Employee Orchestration Networks (EON), which applies AI predictive analytics to improve employee experiences, productivity, and engagement, including tackling absenteeism. Research shows that 8.7% of payroll costs are linked to absenteeism. By developing hypotheses and testing them against employee behavior patterns using predictive analytics, EON was able to suggest strategies to reduce absenteeism, such as enhancing paid time off rules.
Xerox Corporation applied strategic deployment of AI in recruitment to reduce staff attrition by 20% within just six months. Xerox leveraged data from personality assessments to inform hiring decisions, illustrating how AI can be used to retain top talent​​.
The integration of AI into recruitment processes is rewriting the talent acquisition playbook. AI is proving especially valuable for content creation for recruitment. For example, tools like ChatGPT automate the crafting of job descriptions and candidate outreach emails. Using AI to streamline candidate acquisition speeds up the recruitment process and ensures consistency and quality in communication​​. For example, companies like Textio provide AI-powered services to help create better job descriptions using AI to eliminate bias.
AI also enhances candidate communications with chatbots and AI-powered video interview platforms that offer more engaging and responsive interactions. Paradox is just one company using AI to improve communication between recruiters and candidates. These tools are efficient and provide valuable insights into candidate compatibility.
AI-driven candidate sourcing is another area where technology is having a significant impact. Companies like XOR and Entelo are using AI to automate candidate acquisition, scanning online job sites using AI to match likely candidates to job openings. By automating candidate searches and screenings, AI enables recruiters to tap into a wider talent pool, ensuring that the best candidates are shortlisted. This approach saves time and introduces a new level of precision in candidate selection​​.
Resume screening is an area where AI’s operational efficiency really shines. AI algorithms can process and analyze resumes at a scale and speed unattainable by human recruiters. AI analysis not only streamlines the initial stages of the recruitment process but ensures that no promising candidates are overlooked​​. Applying Natural Language Processing (NLP) in crafting job descriptions also helps organizations attract a more diverse pool of candidates.
AI predictive analytics are also proving invaluable in candidate assessment. By analyzing data from past hiring decisions, AI helps recruiters make better-informed predictions about a candidate’s potential for success in a specific role, thus minimizing bias (See How To Use AI To Eliminate Bias), improving the quality of hires​​, and increasing employee retention. Companies like Knockri, for example, are using AI and NLP to eliminate bias from candidate screening, automating candidate interviews and assessments.
AI also plays a key role in employee retention. AI can analyze patterns of employee behavior and engagement, thus predicting employee turnover. By identifying who is likely to leave, companies can proactively address concerns and improve employee retention.
AI can also tailor the work experience for individual employees. By analyzing data on preferences, learning styles, and career aspirations, AI can suggest personalized development plans, training programs, and career pathways to make employees feel valued and invested in their roles. Audo, for example, is a new tool that uses AI and machine learning to assess personal skills, interests, and abilities to suggest strategies to advance or change careers. AI can also help employees map out their career progression within the company by analyzing skill sets and performance data, suggesting roles or projects that align with career goals, and helping them see a clear future within the organization.
Managers also can use AI to optimize workloads to prevent burnout. AI can be used to monitor work patterns and suggest adjustments to schedules and tasks. Analytics can help structure workloads to promote a healthier work-life balance and reduce stress-related disengagement.
AI systems also can be used to identify and highlight employee achievements, creating a culture of recognition and appreciation. Such recognition boosts morale and reinforces positive behaviors, contributing to higher retention rates.
Generative AI is reshaping HR and recruitment by automating and enhancing many aspects of the hiring process. Tools such as Salesforce Einstein GPT and HubSpot AI are at the forefront of this hiring transformation. Salesforce Einstein GPT helps automate personalized communication with candidates, streamlining the recruitment funnel without compromising on personal touch​​. This enables hiring managers to focus on strategic aspects of recruitment, such as interviewing and decision-making, rather than getting bogged down in manual outreach and follow-up processes.
HubSpot AI offers capabilities to generate relevant outreach emails based on minimal input from users. This feature significantly reduces the time HR spends crafting individual emails for more efficient communication with potential candidates​​. By automating routine communications, HR teams can manage larger volumes of applicants more effectively, ensuring that no candidate is overlooked and improving the overall candidate experience.
When it comes to recruitment and retention, AI is not just a technological tool but a strategic asset that can help companies overcome the labor shortage. AI’s applications in predictive staffing, retention, recruitment, and operational efficiency are reshaping how organizations approach talent acquisition and management. As we venture further into this AI-driven era, the focus must remain on leveraging these technologies responsibly, ensuring that the pursuit of efficiency and innovation does not overshadow ethical considerations.
If you care about how AI is determining the winners and losers in business, how you can leverage AI for the benefit of your organization, and how you can manage AI risk, contact me at glenn@glenngow.com. I write and speak about how senior executives, board members, and other business leaders can use AI effectively. You can read past articles and be notified of new ones by clicking the “follow” button here.

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