How AI can deliver public sector HR efficiency 

Departments will need to look everywhere to support the UK government’s economy drive, including public sector HR efficiency. As the Chancellor seeks to cut running costs by 15%, can AI technology come to the rescue? 

In this blog

The context: ‘Flabby’ no more?

Automate for public sector efficiency

Data and reporting: Make smarter decisions

Bridging the skills gap

Conclusion and key takeaways

The context: ‘Flabby’ no more? 

Prime Minister Sir Keir Starmer recently vowed to reform the “flabby” British state. Part of the revamp will include digitising government services, which he believes will create a “£45bn jackpot”. The idea is to deploy technology, including automation and AI, to boost productivity. 

Rachel Reeves has said she intends to stick to her self-imposed fiscal rules in a bid to return the economy to growth. Her decision not to raise taxes means she plans to reduce government administrative costs by the end of this Parliament instead. This includes axing 10,000 civil servant jobs in areas like administration and communications. 

In this high-pressure environment, every department is looking for efficiency savings in the public sector.  

Automate for public sector HR efficiency  

According to a recent report, ‘Is HR ready for AI?’, 35% of the tasks filling many HR professionals’ workdays are currently ripe for automation. Despite initial concern over what such change might mean for employment, public sector HR professionals could in fact benefit.  

Many of the repetitive, manual activities can be automated, from responding to routine queries to keying data into systems. This creates space for more interesting and rewarding work. 

The study points to three major areas where HR could benefit from rolling out AI systems. These are recruitment, learning and development, and talent management. 

The cost of inefficiency 

Manual HR processes come with hidden costs. These include the time professionals waste on lower-level tasks and dealing with the impact of high error rates and costly, inefficient workarounds. 

AI tools can also assist in understanding the content of large, complex documents – and checking for errors. This helps to protect the organisation by mitigating risk and strengthening compliance. 

Key HR processes for automation 

Other public sector HR processes that could benefit from streamlining and automation include: 

• Employment contract and policy analysis. AI-enabled document review tools make it possible to read, interpret, and summarise complex documents quickly and efficiently. 

• Error checking in a payroll and benefits administration context. Automating this activity reduces the need for human oversight and improves accuracy. 

• Leave and attendance management. Introducing self-service portals that enable employees to request time off and update records saves HR professionals’ time to focus on more strategic tasks. 

• Onboarding and offboarding. Automating standard workflows not only supports compliance but also reduces the administrative burden for HR teams. 

Data and reporting: Make smarter decisions with AI HR software 

Another benefit of implementing better technology is that HR analytics supports professionals in making smarter decisions based on real-world data.  

For example, AI HR software can help identify trends based on workforce information. This enables leaders to make smart, proactive choices on activities from resource allocation to talent management. 

By harnessing data in this way, HR teams can act swiftly and effectively to align workforce-related activities with organisational goals. 

Bridging the skills gap between technology and HR expertise 

AI is already transforming many HR functions. This means some routine, manual tasks are disappearing, and more are likely to follow suit over time.  

But this is far from bad news. The automation of transactional activities is already helping to enhance rather than replace HR roles. It’s often a question of augmenting, not replacing, people. 

This means that developing skills and familiarity with AI is essential for HR professionals, as their roles become increasingly entwined with the advancing technology.  

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Conclusion: Embrace HR efficiency 

Integrating of AI into public sector HR represents a transformative opportunity rather than a threat. By embracing technological innovation, HR professionals can shift from mundane administrative tasks to more meaningful work that adds more value.  

As automation and intelligent systems become more sophisticated, they offer a promising pathway to efficiency savings in the public sector. Not only will these reduce cost for the taxpayer; they’ll also enhance experiences for employees. 

Key takeaways

• AI can automate up to 35% of routine HR tasks, freeing professionals to focus on more complex, rewarding work that needs human insight and creativity. 
• The public sector can tap into AI technology to support the government’s efficiency drive, potentially creating significant cost savings and improving operational productivity. 
• Implementing AI in HR augments human workers and capabilities and enables them to engage in more impactful, meaningful work. 
• Data-driven HR analytics can help organisations make more informed decisions about talent management, resource allocation, and workforce planning. 
• Developing digital skills and becoming comfortable with AI technologies is increasingly vital for HR professionals to remain effective and successful. 

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