IBM Malaysia’s Country General Manager and Technology Leader Dickson Woo shares with HR Asia his insights on AI’s impact on human resources, and how it is able to enhance productivity and reduce costs through AI integration in HR.
Artificial Intelligence (AI) is reshaping various facets of life and work, with the human resources (HR) function being no exception. Leading organisations are recognising AI’s profound impact on business models, workforce demographics, and the evolving experiences anticipated by both customers and employees.
However, the rise of AI is accompanied by growing concerns about its implications for jobs and society. Today we are seeing the dual nature of AI in HR, both the opportunities it creates and the challenges it poses.
Closer to home, the Malaysian government, through TalentCorp and other agencies, is actively studying the impact of digitalisation and AI on the workforce. This involves identifying the necessary skills and training required to adapt to these technological changes. The government aims to nurture, attract, and retain a workforce capable of leveraging AI for economic growth.
What’s more, the launch of government programs like ‘AI untuk Rakyat’ signifies the country’s commitment to embedding AI across various sectors, including HR. These initiatives aim to promote AI literacy and integration at all levels, ensuring that the benefits of AI are widely distributed among the populace.
A critical question is how AI will change the nature of work, which roles will undergo the most significant changes and the timeline of these transformations. Answers to these questions can help provide the information that workers will need to re-skill, in order to establish career paths in the more compelling roles that are emerging in HR.
Job Losses or Job Creations?
Despite concerns about job losses, AI is also generating new, higher-value roles within HR.
For instance, the “talent scientist” role combines sourcing, industrial-organisational psychology, and AI to analyse data, identify top talent, and predict success—all in a way that appeals to candidates. This role marries the science of data with traditional HR’s art of sourcing, leading to more predictable hiring outcomes.
Overall, the annual global study of 3,000 CEOs from over 30 countries and 26 industries found that in ASEAN, 47% of ASEAN CEOs surveyed say they are hiring for generative AI roles that did not exist last year, and 44% expect to reduce or redeploy their workforce in the next 12 months because of generative AI.
Best Practice: $1.6B Delivered in Productivity with Automation & AI
Today, AI is revolutionising HR by enabling more strategic contributions, such as candidate attraction, hiring, learning, compensation, career management, and support.
AI enhances recruitment processes by matching skills to roles, predicting future success, and estimating time-to-fill for vacancies. These capabilities transform HR from an administrative function into a strategic partner that addresses critical business challenges.
IBM’s experience with AI in HR offers valuable insights. By being its own “Client Zero,” IBM has achieved significant cost savings and productivity improvements. The integration of generative AI and automation has led to a 40% reduction in HR operating costs. Overall, embedding AI and automation across business functions has delivered $1.6 billion in productivity.
Addressing Bias and Ethical Considerations
While AI holds the promise of reducing bias, careful design and implementation are crucial. Companies developing AI systems and those deploying them must be vigilant about potential biases and work actively to mitigate them. AI applications in recruitment, for example, can shift candidate mindsets by recommending roles based on skills rather than demographic factors like gender or ethnicity.
Building effective, unbiased AI applications requires collaboration between content experts and machine learning teams. Diversity of thought is essential to ensure that AI solutions are as free from bias as possible. As AI becomes more integrated into daily operations, proactive governance is vital to ensure ethical, responsible, transparent, and explainable decision-making.
AI in HR and the path forward
AI is transforming HR, creating new opportunities while posing significant challenges. For organisations, the key to leveraging AI lies in balancing its power with the necessary guardrails for trustworthy execution. AI combined with strategic insight can unlock new business opportunities and enhance HR’s contribution to an organisation’s competitive advantage.
As AI continues to reshape the HR landscape, organisations must prioritise governance, continuous learning, and adaptability. By doing so, they can navigate the complexities of AI adoption and harness its potential to drive growth and innovation. The future of HR in an AI-driven world promises to be dynamic, with a focus on strategic, high-value contributions that enhance both business outcomes and employee experiences.
Note: This commentary was contributed by Dickson Woo, IBM Malaysia’s Country General Manager and Technology Leader.
