AI and Human Resources: ChatGPT vs. Built-In AI in Software

What Are the Advantages of Using AI as Part of a Global HRIS Compared With ChatGPT?

According to a study conducted by Gartner, focusing on the implementation of AI in HR departments, 76% of HR managers believe that their companies will fall seriously behind if they do not start using artificial intelligence solutions within the next one to two years.

For more than two years, artificial intelligence, specifically ChatGPT, has proven its capability to produce content and automate tedious tasks for workers. As with many other employees, human resources professionals are eager to adopt this technology to maximize efficiency. Yet, adoption rates among HR teams remain relatively slow. Factors such as digital proficiency and data protection, which are crucial for the HR function, contribute to this hesitancy.

In the absence of explicit regulations on AI use, HR professionals are likely to persist in their use of ChatGPT. However, using ChatGPT in HR outside the company’s control carries risks, particularly in terms of data security. At the same time, HR software publishers are beginning to integrate AI into their HRIS. A question arises for HR professionals: why use the built-in AI in an HRIS when ChatGPT can do the job, at least on the surface?

This article reviews the risks and limitations of using ChatGPT in HR. It explains why HR professionals should instead use AI embedded in their HRIS.

The Advantages of Incorporating AI Into HR Procedures

ChatGPT: A General-Purpose AI

As soon as ChatGPT became available to the general public in November 2022, many HR professionals identified various ways it could be used, including:

• Writing job postings
• Analyzing candidate CVs
• Writing job descriptions
• Creating interview questions
• Addressing human resources inquiries from staff
• Automating repetitive tasks related to document input

ChatGPT has the potential to address various requirements of human resources professionals, saving them valuable time. However, it’s crucial to keep in mind that, at its core, it’s a versatile, multi-purpose resource. ChatGPT has not been specifically engineered for use in human resources, so its responses on HR topics may not be precise or even correct, as they are not rooted in an HR context. ChatGPT lacks specialized knowledge in HR.

Opting For Built-In AI Designed For HR

The use of generative AI in human resources is on the rise, as HR professionals seek to increase productivity with the help of artificial intelligence. Now, HR software publishers must respond to this demand by securing the AI models available and adapting them to specific business uses.

ChatGPT can generate a job description, but it may require multiple iterations to reach a satisfactory outcome that aligns with the company’s expectations and standards. Alternatively, if you ask an AI program integrated into an HRIS to perform the same task, you can expect a faster and more satisfactory response. The AI used will have been customized for HR purposes, with its own filters and barriers. Responses will be given in a predefined format. For example, the chatbot is specifically configured to respond to HR requests, drawing its answers from the provided documentation.

Using ChatGPT in HR: The Risk of Data Breaches

Human resources professionals manage vast amounts of information daily, including sensitive and private data. However, when using ChatGPT, this data may fall under the ownership of OpenAI, the company behind ChatGPT. OpenAI can then use it to train their AI models. For these reasons, using ChatGPT in human resources is not recommended due to potential privacy and security breaches. Using ChatGPT without the consent of their company could make HR professionals responsible for data leaks.

The Benefits of Incorporating AI into HRIS in Regard to Data Protection

Conversely, a human resources information system (HRIS) editor places utmost importance on protecting sensitive data, boasting the most stringent credentials in the industry, including SOC 2 Type 2, ISO 27,001, and HDS. For example, to implement AI directly integrated into its HRIS, SIGMA-HR chose to use the models provided by OpenAI, but deployed on Microsoft Azure, with the guarantee that no data is retained. This framework allows SIGMA-HR to offer “private and secure AI” to its users.

This integrated AI:

• Anonymizes sensitive personal information
• Does not store the data that is provide
• Does not use the data to train AI models
• Does not make judgments or decisions for a human

The Value of AI In HR: The Importance of High-Quality and Relevant Answers

ChatGPT’s Biggest Weakness in Terms of Human Resources: The Reliability of Its Answers

ChatGPT can help HR in many ways, but it has a significant limitation: its responses are not backed by evidence. As a result, they cannot be considered trustworthy. In addition, the data on which ChatGPT is based is not updated in real time. As a result, HR professionals must be vigilant in ensuring the conformity of the documents they create and the procedures they implement to avoid legal issues.

ChatGPT does not offer sufficient guarantees regarding the quality and relevance of answers. It cannot be relied on to provide reliable answers to HR questions. Streamlining HR professionals’ daily tasks is a commendable goal, but the outcome must be trustworthy. ChatGPT and other AI models are notorious for their “hallucinations”, i.e. their ability to make mistakes and even invent answers.

AI-Powered HRIS Provides Sourced, Updated, and Contextualized Data

For their part, HRIS publishers who choose to integrate AI into their own HR software are careful to specify what kind of answer will be given to users. This was the choice made by SIGMA-HR when implementing its integrated AI. It allows companies to integrate and update their own documentation (employee handbook, internal regulations, etc.) via a document management interface. They can also assign the right documents to the right modules. This customization capability is a real asset.

In response to a query, the chatbot searches for information in relevant resources and provides an answer, citing the specific source. The ability to “source” answers, extract them from a context and verify them is greatly valued by human resources professionals. By creating a chatbot specifically for answering HR-related questions, the risk of providing inaccurate information is significantly reduced. AI can also act as a “decision-making tool”, consistently directing employees and HR specialists to the appropriate resources.

Automating HR Processes: The Key Advantage of Integrated AI

Generative AI is primarily known for its text-generating capabilities, but it also has the potential to automate tasks when integrated into an HRIS.

By implementing an external tool like ChatGPT for HR tasks, one would have to manually intervene and frequently switch between the two systems. Instead, SIGMA-HR has decided to incorporate artificial intelligence directly into its HRIS and use it to automate specific HR responsibilities, including:

• Fill in forms (SIGMA-HR’s AI team estimates that this will save 80% of data entry time)
• Retrieve CV information from the company’s database
• Anonymize a job description
• Answer employees’ questions based on internal company documentation

Classic versions of ChatGPT do not allow building such automatisms. They are limited to simple chats with a chatbot. Organizations generally lack the resources to properly implement AI dedicated to HR topics. For this reason, HR software publishers are focusing on the implementation of these solutions, which can, for example, trigger actions directly in the HRIS and interact with the system’s other modules.

AI in Human Resources: Key Considerations

The integration of AI into HRIS is not just a trend. It is a fundamental movement that will radically change the way human resources organize their processes.

While ChatGPT offers interesting prospects for human resources, its consumer versions are unsuitable for this purpose.

Organizations wishing to use AI for HR purposes should prioritize integrating it into their HRIS. They can then benefit from AI designed specifically for human resources. This AI will be reliable and integrated with their other HR processes, without having to worry about the security or confidentiality of their data.

Integrated AI in an HRIS simplifies the tools that HR uses every day. This approach provides a seamless and intuitive user experience, eliminating the need for constant tool switching, which can be time-consuming and frustrating.

The goal is not to hand over total control to AI, but rather to save time. To ensure the trustworthiness of HR procedures with AI, a human first verifies the data before inputting it into a form, for instance. Ultimately, the final review remains with the human. This is how AI should be utilized in HR.