PIVOT NEWSROOM

Interview: Pivot Factory CEO Michael Leadbetter Talks AI & Human Resources

Apr 2, 2019 7:18:13 PM / by Pivot Factory

One of the essential elements of any company-wide digital transformation is identifying ways in which internal operations can be made more efficient, and that’s especially important for human resources departments, Pivot Factory CEO and Founder Michael Leadbetter said in a recent interview with TGDaily.

While many firms are progressively injecting new technologies to modernize operations and improve efficiencies, human resource departments are stubbornly lagging behind, but that may be changing.

According to a 2017 survey conducted by CareerBuilder, the majority of human resource professionals surveyed said they expect artificial intelligence (AI) to become a regular part of operations within the next five years.

Of the professionals surveyed, the majority either said such tasks as payroll, background checks and applicant tracking would be “fully automated” or “partially automated” within a handful of years.

“Digital transformation is typically focused on (1) creating new business models (2) adding technology to an existing product (3) using technology to make the core business more efficient,” Leadbetter explained.

“HR managers who do not fully automate say they lose an average of 14 hours a week manually completing tasks that could be automated; more than a quarter (28 percent) waste 20 hours or more, and 1 in 10 (11 percent) spend 30 hours or more,” CareerBuilder reported.

Leadbetter, in the interview, said an infusion of rapidly expanding technologies, such as AI and machine learning, can improve operations in a variety of areas, human resources included.

“Digital transformation is typically focused on (1) creating new business models (2) adding technology to an existing product (3) using technology to make the core business more efficient,” Leadbetter explained.

And despite concerns of AI and other advancements creating a dystopian world in which computers and robots replace skilled workers, only 7 percent of human resources managers who participated in the CareerBuilders survey said a robot could take their place.

More broadly, AI is expanding rapidly across industries. According to the 2017 AI Index, the number of startups in the United States developing the technology has increased 14 times since 2000.

Pivot Factory is an advisory services firm that focuses on the trends of disruption, and how companies can react through innovation.

Leadbetter also hosts Pivot Factory Podcast, which features interviews with innovators and thought leaders of various industries, resulting in a thought-provoking discussion about how businesses must grow exponentially, or get left behind.