AI Deep Dive: Three Generations Of HR Tech AI Solutions In The Market
May 15, 2023
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Explore how Large Language Models and neural networks are reshaping the HR technology landscape. Discover three generations of AI solutions, from simple enhancements to fully AI-integrated platforms. The newest vendors are revolutionizing the market by building entire suites around AI. Delve into the impact of AI on decision-making, workforce dynamics, and educational opportunities for HR professionals. Plus, get insights into the challenges companies face with data security and the need for new skills in this evolving field.
The podcast outlines three generations of HR Tech AI solutions, emphasizing that second-generation platforms built entirely on AI offer the most transformative potential in the market.
A key point discussed is the shift in AI applications from traditional systems to advanced neural networks, which enable more informed decision-making in HR processes like hiring and performance assessments.
Deep dives
The Evolution and Fundamentals of AI
AI has evolved significantly over the past several decades, transitioning from foundational concepts such as natural language processing and image recognition to more sophisticated applications like predictive analytics and neural networks. Unlike traditional computing, which focuses on transactional data as the primary outcome, AI systems operate by starting with vast amounts of data to classify, understand, and generate insights from it. For example, in AI's initial stages, expert systems were developed to aid human decision-making, whereas modern AI leverages machine learning and deep learning models to predict outcomes based on large datasets. As this discipline continues to advance, its applications across various sectors, including HR technology, are becoming increasingly critical for optimizing decision-making processes and workforce management.
Neural Networks and Their Impact
Neural networks have emerged as a groundbreaking tool within AI, employing algorithms to analyze data through a structured model that mimics the way the human brain processes information. A neural network can classify and make predictions by analyzing patterns within massive datasets, making it particularly powerful for applications like image and speech recognition. For example, training a neural network with labeled images allows it to identify similar images by adjusting internal parameters through mathematical optimization. This capability enables organizations to harness previously untapped data potential, leading to more informed decisions in areas such as hiring, training, and performance assessments.
Generational Shifts in AI Systems
The podcast discusses three generations of AI technologies in relation to HR: emerging AI vendors that enhance existing systems, first-generation vendors utilizing machine learning on limited data, and second-generation AI systems designed from the ground up to leverage extensive datasets. For instance, traditional systems like Workday or SAP, while incorporating machine learning features, are limited by the transactional nature of their databases and cannot perform the advanced analysis possible with modern neural networks. In contrast, newer AI companies like Eightfold and Gloat are capitalizing on large-scale employee data to not only predict trends but also propose optimal career paths based on comprehensive historical insights. This generational shift underscores the necessity for HR professionals to adapt and integrate AI capabilities to address increasingly complex workforce challenges effectively.
In this podcast I explain how Large Language Models and neural networks are reinventing the HR Technology market. After more than 30 in-depth interviews with HR Tech vendors, we see three generations of AI solutions:
Emerging: AI features added on
First Generation: AI capabilities built-in
Second Generation: Platforms built on AI
As I discuss in this week's podcast, vendors in category 3 are the most transformational of all. These vendors are building their entire product set around Large Language Models and expansive neural networks. While they were once considered new, as you'll learn in this podcast I believe these "built on AI" platforms are the future of the market.
Stay tuned for our new whitepaper on the HR Tech vendor market and how AI is changing the entire marketplace, and my take on the impact Google will have on this market.
Additional Information:How AI Is Disrupting The HR Tech MarketplaceSeekOut Brings GPT4 To Recruiters. Eightfold Launches Copilots For HR.What Is A Neural Network? (Great overview video)
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