Most firms now use AI in HR processes, with human sign-off required 85% of the time: Survey
Large organisations are more likely than SMEs to use AI in HR functions, but on the whole employers still value human judgment, says the Singapore National Employers Federation.
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SINGAPORE: Most firms in Singapore now use artificial intelligence for human resources processes, but humans still sign off on most decisions, according to a Singapore National Employers Federation (SNEF) survey released on Friday (Oct 30).
SNEF counted almost 3,000 use cases of AI in HR in its survey of 1,000 employers from June to July.
Out of this number, 85 per cent of use cases leave the final decision to human confirmation after AI provides input.
In the remaining 15 per cent, AI makes the decision without a human signing off on it. Among these use cases, 73 per cent are in “routine or high-volume administrative processes” such as resume screening and skills assessments, said SNEF.
In nearly all use cases without human sign-off, employers still designate someone – such as the head of HR, supervisor or hiring manager – to intervene if needed and change or reverse the decision made by AI.
"Employers generally do not use AI in cases where there are more significant consequences for employees," said SNEF, adding that this reflects employers’ continued trust and emphasis on human judgment.
Large organisations are more likely to use AI in HR functions, with 81 per cent of firms with more than 200 employees doing so, compared to 65 per cent of small and medium enterprises (SMEs) with 200 or fewer employees.
SNEF president Kuah Boon Wee on Friday said that when AI is used in HR functions, the level of oversight should "match the stakes", with lighter monitoring for routine tasks and closer watching for decisions that affect people’s livelihoods.
"That is what responsible use should look like in practice," he said at the inaugural SNEF Employers’ Summit, with a theme of harnessing AI for business and workforce outcomes.
WHEN IS AI USED THE MOST?
SNEF’s survey also found that AI use in HR functions varies across an employee’s life cycle in an organisation.
AI adoption is heavier in the early stages of the employment relationship – for instance, to screen and shortlist candidates for recruitment, or to personalise employees' learning and inform their mobility within the company.
Even prior to hiring, AI is used in workforce planning, such as to forecast demand and identify skills gaps.
Companies also tap AI to analyse employee sentiment and attrition risk, said SNEF, as well as to benchmark compensation and analyse pay equity.
Reliance on AI is lowest towards the end of the employment relationship, when dealing with separation and exit matters.
At this stage, AI is used – if at all – mostly to analyse employee attrition data to reduce turnover and support separation planning or disciplinary investigations.
"Overall, employers are generally more likely to use AI in high-volume processes where AI can complement, rather than replace, professional judgement," said SNEF.
Said Mr Kuah: "Employers are already choosing carefully where to use AI, and that is the right instinct."
In the United States, makers of AI hiring tools Workday and Eightfold AI face lawsuits contesting how fairly these tools were used to screen candidates. These test cases are being watched for possible implications on AI use in HR processes.
Asked how concerns about potential bias would be addressed, SNEF chief executive Hao Shuo said employers are generally aware of the laws and their liability for offences of discrimination.
The survey found that 84 per cent of employers were very or extremely familiar with frameworks such as the Tripartite Guidelines on Fair Employment Practices, Fair Consideration Framework, Model AI Governance Framework for Generative AI, and the forthcoming Workplace Fairness Act, set to come into effect end-2027.
“When they deploy AI in the whole sifting process when CVs come in, employers will make sure that there is no bias in the process,” said Mr Hao.
He added that jobseekers can also learn how to make their resumes stand out in AI screening, and better understand how AI is deployed in the recruitment process.
Some employers already have safeguards in place, noted SNEF.
These include mechanisms to monitor the outcomes of AI tools and make adjustments such as reviewing decision patterns, retraining models, tracking reasons for human intervention and giving feedback to vendors.
FIRMS SEEK GUIDANCE ON AI
Employers’ top concern about using AI was that an over-reliance on the technology could erode HR capabilities over time, found the survey. This was cited by 39 per cent of respondents.
Roughly one-third were concerned about when to trust AI over professional judgment (36 per cent), accountability when AI makes errors (35 per cent), and lack of training to use the technology effectively (31 per cent).
For support in tackling such issues, 42 per cent of employers sought more clarity on their obligations and liability when using AI in HR functions, and training on responsible use of the technology.
Some also wanted an advisory service on using AI in HR, and a list of AI tools assessed for their fairness.
In response, SNEF has developed a "pre-scoped" solution for firms that integrates support for AI adoption with workforce transformation.
The solution covers four areas: strategic HR aligning workforce planning and employee development with business priorities; AI automation of routine HR work; workforce transformation involving job redesign and change management; and skills analytics using AI.
Firms can approach SNEF to be matched to specialist consultants who will help them transform their HR functions and workforce in a “people-centred manner”, said SNEF.
Five specialist consultants have been appointed: BDO, Elitez, EON, PwC and Skybots.
Eligible firms can fund these efforts through the Workforce Development Grant (Job Redesign+), which covers up to 70 per cent of costs for SMEs and 50 per cent for non-SMEs, capped at S$150,000.
MEASURE PROGRESS BY OPPORTUNITIES AI CREATES
At the summit on Friday, Acting Manpower Minister Jasmin Lau said that when it comes to the impact of AI on workers and businesses, the government will "watch very closely and act early".
"We are already reviewing our support schemes currently, to provide stronger support to graduates and to mid-career retrenched workers," she said.
Ms Lau noted difficulties with forecasting how many jobs AI will take, or which jobs exactly. Different companies will also respond differently as the tech develops, she said.
Amid this uncertainty, she urged employers to think about their staff in tandem with AI and to start by focusing on problems currently faced by businesses, rather than the tech itself.
Strong HR capabilities are needed for this, which is why tripartite partners have launched the "people-centred AI transformation for HR" initiative, she added.
She also urged employers who have performed well in the past year to do their part for workers, noting the National Wages Council's emphasis on sharing business gains through better jobs, progression and sustainable wage growth.
Ms Lau said that workers and businesses also want to know if the government has a "safety net" if AI causes them to fall behind.
"I cannot describe a very big response to a disruption that no one can yet size," she said, adding that Singapore's policies will move in steps and adjust accordingly.
She added that the hope is to measure progress not only by how many companies adopt new technologies, but by whether they create new opportunities for workers to grow and contribute.
