AI for career development: what it means for HR

The use of AI for career development is very much top of the HR agenda. This relatively new technology is altering how companies support staff growth, career mobility, and the development of skills. HR departments are increasingly relying on AI for career development to personalise learning, identify skill gaps, and support internal promotions or sideways moves.

Research from a European HR solutions provider reveals that the UK is a frontrunner in AI adoption within HR, with “55% of organisations investing in AI to support the workplace, ahead of the European average of 38%.” It goes on to say that “British employers are increasingly using AI to streamline operations, improve the employee experience, and future-proof HR practices.”

That said, this new idea of AI for career development is only being used by about a third of UK employers, according to government research, with many businesses just experimenting with AI for career development rather than adopting it fully.

Where AI is used in HR, it can support enhanced career development, improved skills mapping, and customised job pathways, especially when used alongside mentoring and coaching from the HR department or trained managers.

Gone are the days of static career ladders and fixed spreadsheets. Say hello to the career lattice approach and dynamic job architecture structures which provide data-driven, tailored learning pathways that grow with the employee.

The key ways in which AI can be seen as a supportive tool for career development are:

• Personalised career growth pathways

AI platforms are adept at analysing each employee’s skills, performance data, and career intentions, so internal development opportunities and relevant training can be recommended.

• Career flexibility and skills mapping

AI is able to analyse organisational data that will identify internal opportunities, transferable skills, and future workforce capability needs, helping businesses move from an obsolete job-based system to a skills-based workforce, with lateral and vertical moves in the mix as well.

• Support with mentoring and coaching

AI tools can suggest mentoring connections, deliver feedback on development objectives, and recommend attainable career pathways; all there to complement the work of human career coaches, instead of doing away with them.

The adoption of AI for career development varies across sectors, so let’s take a look at which ones are moving faster.

The tech sector

It’s not a surprise to learn that the tech sector is one of the fastest adopters of AI for career development. Research suggests that 72% of tech companies use AI for employee learning and progress development. This helps workers amass skills that align with future roles by tracking skills, offering up automated learning recommendations, and learning about internal promotional programmes.

Public services and healthcare

In order to improve workforce planning and reduce the administrative burden, UK healthcare companies are adopting AI for career development. A study of UK public sector professionals found that 22% used generative AI at work with “61% showing a high amount of trust around generative AI outputs, and a low fear of replacement (16%).” It can also help with the identification of training needs, pre-empt workforce shortages, and reduce the amount of time spent on administrative duties.

Hospitality and retail

In similar circumstances, these sectors are using AI for workforce planning and in-demand skills development, with 51% of retail companies using AI-based workforce scheduling systems to match demand with staffing. AI systems can additionally pinpoint opportunities where staff members can move to a supervisory position or attempt a sideways move.

Financial services

HR departments within the financial services sector are increasingly making use of AI when it comes to skills forecasting, compliance, succession planning, and workforce analytics, with 38% of HR leadership teams confirming this.

Practical implementations are the key to effectively using AI for career development.

Use AI to identify:

• The skills of the current workforce.
•  Any skills gaps.
• Opportunities for internal mobility.

Building a skills matrix with Careerminds is a great place to start.

It can’t be said enough times. AI for career development should only be used in conjunction with expert career coaches. Best practice is using AI to provide insights and do all the drudge work, while coaches and mentors deliver personalised career guidance.

With only 10% of UK employers providing formal AI training to employees and 61% of employers having no current staff working with AI, there is a real need to build on AI capability. Delivering specific AI training will help workers:

• Understand how to use AI tools.
• Develop future skills.
• Engage with and embrace digital transformations.

These should be implemented with legal teams to draw up:

• Data governance frameworks.
• Responsible AI policies.
• Bias tracking processes.

With many roles changing, it’s worth the time and effort for employees to take ownership of their own career development by combining AI help with coaching support.

AI systems can help employees with:

• Identifying any skills gaps.
• Exploring career journeys.
• Planning learning pathways for future use.

It is already vital to understand AI within the workplace, as this skill will bode well for any future position. This includes how to write prompts, correctly evaluate AI outputs, and understand data ethics.

With automation on the rise, unique human capacities will become even more sought after. Those important future skills will include leadership, creativity, problem solving, and emotional intelligence, so it’s time to up the ante on these skills, and hone your assets.

This is the key question to consider when moving towards using AI for career exploration. There are several ethical considerations and risks that need to be managed by HR leaders, so let’s take a look at them in more detail.

Bias

The information that AI has been trained on is data that it has been fed by humans from numerous different sources across the web. This means existing workplace biases can be replicated. AI can’t “think” for itself, it just regurgitates, so any biased promotion data, unequal training opportunities, or gender / ethnicity disparities might be included. If this isn’t checked, AI for career development could actually reinforce inequality, rather than reducing it.

To combat this, HR leaders should be vigilant by cross-checking facts with reliable sources, limit AI use for generating ideas, and tailor any prompts with clarity, such as specifying where you want the sources to come from.

GDPR and data protection

AI systems processing employee data are required to comply with the Data Protection Act 2018 and GDPR (General Data Protection Regulation) in the UK. This means HR departments must make sure that:

• There is total transparency about how AI is used within the company.
• The processing of staff data is legal.
• There are clear consent and governance frameworks.
• Sensitive or confidential information doesn’t fall into the wrong hands.

Here’s a note of caution when using a work device. If you’re not sure, it’s best not to work with any information that could pose a privacy or security risk. As there is no end-to-end encryption, there is a chance that data could be viewed by parties who shouldn’t have access to it.

Reliability

While AI has a huge capacity for help, caution is key. It’s not completely reliable, as it depends upon what’s available online – which may be out of date, lack context, or be biased. It’s vital that information is checked thoroughly, and not just taken as fact.

Over-automation

Research suggests that 40% of HR professionals are concerned that AI is “reducing the ‘human touch’ essential to effective people management,” reflecting an increasing need for career development that is human-centred. This includes providing mentoring, career coaching, empathy, and contextual understanding. AI to support career development must be used alongside career professionals.

While it seems that AI isn’t likely to completely replace career development programmes and HR professionals, it will inevitably transform the way they operate. The future could include:

• Mentoring supported by AI.
• Tailored learning journeys.
• Skills-focused workforce planning.
• Internal talent marketplaces.
• Time saved through automation, using AI for more administrative and data mining tasks.

The businesses that will benefit the most from all of this technology will be the ones that combine human-centred leadership and development strategies with AI insights.

The real question for HR leaders now isn’t whether to use AI for career development, but where to start and which workforce skills to prioritise.

At Careerminds, we place value on combining AI tech with the personal touch, for career development programmes, executive outplacement, andcareer progression frameworks. Contact us at the earliest opportunity to find out more.