Recent data shows that the UAE’s economy is set to expand by 3.4 percent this year and four percent in 2024, propelled by a resurgent non-oil sector. Economists say that an influx of tourists, government initiatives, and technological advancements are behind this momentum.
Conversely, the UAE and the MENA region are witnessing a surge in business optimism and hiring plans, according to the “HR Evolution Perspectives 2023” report, a recent study we did at Darwinbox. The report reveals that 8 in 10 UAE companies plan to increase their headcount in the next two years.
However, organisations keen to hire new employees find themselves constrained by a typically lengthy, complex process, leaving them unable to respond swiftly to a dynamic economic landscape. Manual processes involve a lot of paperwork, data entry, and communication delays, which can slow the hiring process and frustrate candidates and hiring managers.
AI: Revolutionising HR
This is where AI can play a crucial role. AI can help HR professionals streamline the recruitment process by automating resume screening, engaging candidates through conversational AI, supporting hiring managers with interview guides, and providing feedback to candidates. AI can also use data analytics to identify the best-fit candidates for each role, reducing bias and improving the quality of hire. This can save time and resources for HR and improve the candidate experience.
For HR managers, AI can transform HR data into actionable insights that can help them optimise their talent strategy, identify talent gaps and opportunities, and measure the impact of their initiatives. This can enhance HR’s credibility, influence, and value to the business.
Fostering employee well-being and productivity
The employee experience (EX) has never been this important. In the study, UAE CXOs identified the inability to align culture and low employee productivity as a significant risk, with 38 percent saying their organisation could not attune its corporate culture to changing business environments. This comes as a multi-generational workforce increasingly demands and expects varied experiences from their employers based on their personal and professional phases.
AI resolves this divergence by providing personalised and timely employee support through chatbots and virtual assistants for seamless HR service delivery. AI can also use sentiment analysis to gauge employee emotions and well-being and offer suggestions to improve. This can increase employee loyalty, motivation, and productivity.
The study also revealed that regional organisations struggle to accommodate hybrid work environments, pitting them against employees who have come to appreciate flexible work scenarios. Further friction is created over how remote workers manage their time, the source of many heated debates among adherents of return-to-office norms and work-from-home supporters.
Technology can help bridge this gap. Integrating AI into information-sharing systems allows remote workers to quickly locate the necessary resources and answers to complete their tasks, reducing the time spent searching for documents. This efficient distribution of knowledge empowers employees to work independently while maintaining a sense of connection to their colleagues and the organisation. Beyond the scope of HR Tech, AI plays a role in improving collaboration and productivity through efficient live video conferences, complemented by real-time transcription, translation, and captioning features.
Further, by analysing patterns in employee behaviour and performance, AI can identify areas for improvement and provide tailored recommendations for optimisation. AI-driven platforms can also match skillsets and interests for optimal team formation, creating virtual teams that work harmoniously to achieve common goals. Remote workers can engage in peer-to-peer learning and mentoring through AI-curated content and resources, fostering a sense of camaraderie and encouraging the exchange of valuable knowledge and experience.
AI’s role in ESG investments and optimisation
Sustainability has kicked into top gear as the region hosted the world for COP28 this year. The Darwinbox study reveals that financing of green initiatives is rising, with 67 percent of CXOs expecting a rise in ESG investments.
However, ESG is still a novel concept to many organisations, and many struggle to identify areas in which they can optimise their sustainability efforts and undertake effective reports. In this context, AI emerges as a valuable ally. Advanced algorithms can empower HR professionals to harness extensive data for insights into environmental, social, and governance considerations. In the realm of governance, AI can play a pivotal role in improving transparency, accountability, and compliance. Moreover, when it comes to Diversity, Equity, and Inclusion (DEI), AI can aid in collecting and analysing pertinent data, offering organisations valuable insights to enhance their commitment to diversity and sustainability. By leveraging AI, HR teams can navigate vast datasets to identify key indicators, allowing for more informed decision-making in fostering a diverse and inclusive workplace—a crucial component of sustainable business practices.
AI in HR is not a futuristic concept but a present reality that is reshaping the way companies in the UAE and the MENA region work and manage talent. By embracing AI in HR, companies can not only achieve their business objectives but also create a positive impact on their employees, customers, and society.
