ChatGPT is one of the fastest-growing AI platforms globally. The platform had over 1.76 billion visits by the end of April 2023, a few months after launch, making it one of the most visited online platforms globally.
ChatGPT has a significant impact on HR teams. AI is a hot topic in HR, with many teams arguing about the benefits, drawbacks, and compliance challenges of using ChatGPT for tasks such as talent acquisition, employee engagement, and onboarding.
The uptake of ChatGPT has seen HR teams consider moving away from compliance software and attempt navigating compliance using insights from the AI tool. But is this risky?
Here’s what you need to know about ChatGPT and the risks of using it over compliance software.
What is ChatGPT?
ChatGPT is an AI tool that uses natural language processing to answer various queries in a human-like fashion. It is a large language model (LLM) that can do various things, such as answer questions, create different texts, summarize information, write code, and translate text.
ChatGPT holds the crown as one of the fastest-growing applications globally, the platform gained 100 million monthly active users within a month after launch.
ChatGPT is not yet a complete tool, at least at the point of ChatGPT-4. OpenAI, the company behind it, states that the AI-based tool is still in its research and development phase, with companies and individuals able to use it for free.
How HR Teams Are Using ChatGPT
HR teams are fast adopting ChatGPT and AI in their workflows. u within international companies now use AI.
Here are the specific ways HR teams are using ChatGPT.
Talent Search and Acquisition
HR teams are actively using ChatGPT for talent acquisition by using the tool to quickly screen and shortlist candidates based on their applications or resumes. The tool can analyze job descriptions and match relevant candidates, reducing the time your HR team takes to complete the process.
Some HR teams also use ChatGPT to formulate screening and interview questions for shortlisted candidates.
Eliminating Repetitive Tasks
HR teams often handle repetitive administrative tasks such as scheduling interviews, answering common employee queries, and updating employee records. ChatGPT can handle these routine tasks, giving HR professionals the time to focus on other strategic activities.
Improving Employee Engagement
HR teams use ChatGPT to offer guidance on company policies and benefits, personalize responses to employee queries, and facilitate seamless communication between employees and HR.
Onboarding
HR professionals are using ChatGPT to help with employee onboarding, with the tool disseminating crucial information on benefits, company policies, and other details the new hires should know.
Data Management and Compliance
Some organizations have stretched ChatGPT to data management and compliance, using the AI tool for data entry, producing reports, and managing staff records. Some teams also use it to generate insights on staff based on the provided data.
Learning
ChatGPT is built to mimic human conversations and interactions. Therefore, HR teams use it as a corporate learning tool, facilitating training associated with employee wellness or other technical concepts at the workplace.
The Disadvantages of Using ChatGPT in HR
Despite finding various uses within the HR department, there are several key flaws of ChatGPT that your HR team should pay attention to.
Privacy Concerns
ChatGPT is a tool open to the public. Therefore, employees can raise legitimate concerns about the privacy of their work and personal information provided and processed by the tool. This yields a new challenge for HR professionals to ensure proper security systems are in place to protect employee data.
Limitations in Complex Use Cases
Despite ChatGPT working much faster than most HR professionals in tasks such as data analysis, the AI tool can still struggle in cases where human empathy and judgment are needed. These traits are essential for HR professionals to manage staff effectively and make strategic decisions.
Lack of Personal Interactions
With employees interacting only with an online AI tool, your organization risks losing the human touch and personal interactions essential to running a successful enterprise. This can result in poor work ethics or employee motivation since employees don’t have a human they can turn to.
Why ChatGPT is Inadequate Compared to VirgilHR
Despite ChatGPT taking HR departments by storm, many HR teams still rely on compliance software from VirgilHR to make crucial decisions. But why is this the case?
It all stems down to compliance. Despite its effectiveness at speeding up mundane HR tasks, ChatGPT poses significant compliance risks for HR teams. Here are a few you should know.
Inaccurate and Fabricated Answers
ChatGPT and other LLM AI tools are notorious for providing inaccurate and fabricated answers and information. Superficially, the responses provided by ChatGPT and similar AI-based tools are plausible until you assess the details with a fine comb.
You can only spot the inaccuracies if you’re working with a compliance expert who knows the specific details of the laws or regulations that your HR team or department must meet.
Bias
OpenAI has openly admitted to ChatGPT possessing biases and discrimination that can skew its output and pose considerable risks to organizations. There are already known cases of these biases and discrimination, such as racism.
This poses a significant challenge to compliance, especially anti-discriminatory law during talent acquisition, making it wiser for your organization to rely on compliance software and experts to avoid legal trouble.
Cyber Fraud
Several bad actors are misusing ChatGPT to generate massive amounts of false information that can damage organizations. ChatGPT and other LLM AI tools are also susceptible to attacks such as prompt injection that can be used to write malware code and create phishing sites resembling well-known organizations.
VirgilHR’s compliance software poses fewer cyber fraud risks at a much lesser scale than ChatGPT, meaning you have fewer compliance worries regarding cybersecurity.
Intellectual Property (IP) Risks
ChatGPT is trained using tons of data available on the internet. Some of this data includes copyrighted and protected material that, if used by your organization, can lead to copyright and IP infringements.
Moreover, ChatGPT rarely gives explanations or source references to the information it provides, putting you at greater risk of IP and copyright strikes.
With VirgilHR’s software, you’re not at risk of using protected data and information and getting sued for IP violations.
Rely on the Experts
HR teams have been fast at adopting ChatGPT to make tasks easier and less repetitive. However, despite its advantages, it’s not yet ready for full adoption within HR departments, lest you risk expensive compliance and legal issues. Talk to us, and let us offer you a more reliable compliance software solution for your HR team.
