AI and the Future of Talent Management in Healthcare & Life Sciences

According to a 2023 report by the McKinsey Global Institute (MGI), Artificial Intelligence could generate $60 billion to $110 billion annually in economic value for the pharmaceutical and medical-product industries. A key driver of this potential growth is the rapid advancement of artificial intelligence (AI), particularly Generative AI, which creates opportunities and drives change from operational efficiencies to talent management strategies.

To explore AI’s transformation of talent acquisition (TA) and management in the Pharma, Life Sciences and Healthcare sectors, AMS Singapore recently hosted a breakfast event featuring a fireside chat with Sam Hannaway, Lead Solutions Consulting, APAC from The Smart Recruiters, and Leon Kwang, General Manager, APAC from The Udder Group. We delved into the impact of AI on TA and management, emphasising the importance of acquiring skills, as well as upskilling, reskilling and change management. These practices are increasingly essential in today’s workplaces, as strategic skills-based hiring begins to replace traditional role-based hiring.

Strategic opportunities with AI

While AI has existed for years, such as in the form of Siri, recent innovations such as ChatGPT have accelerated the adoption of AI across industries around the world, including the APAC region. 

Despite the growing focus on AI, a quick poll I conducted at the start of the event revealed varied levels of AI adoption among the participants. While many are early adopters who were still navigating its complexities, some are cautiously exploring AI's potential.

Although TA professionals advocate for AI in recruiting and retaining talent in this competitive market, Sam cautioned against jumping on the AI bandwagon without careful consideration. He advised business leaders to first identify their specific challenges and assess how automation can streamline processes for increased productivity and cost-efficiency.

Leon echoed this sentiment, highlighting that each company has unique needs and goals, necessitating a customised approach to AI implementation. Given the rapid evolution of AI, he recommended starting with small improvements – such as aiming for a one percent improvement before scaling up for a multiplier effect. This approach can minimise errors, reduce operational costs, and improve AI integration in TA.

Working with the HR and TA leaders within AMS’s clients, we have witnessed firsthand the transformative impact of AI on Talent Acquisition. It is crucial not to view AI in isolation. It is essential to integrate AI thoughtfully within the broader ecosystem of mindsets, values, and strategies. TA leaders must ensure AI is embedded in work processes and company cultures for a holistic approach to solutions.

Sam highlighted the importance of balancing AI integration with human interaction. AI should serve to enable, not replace, human workers. By automating routine tasks, AI allows recruiters to focus on strategic decision-making and meaningful human interactions. 

He further shared a recent project involving the implementation of a chatbot for a healthcare organisation in Australia. This chatbot handles screening questions and schedules appointments with potential candidates around the clock, freeing up time for the hiring manager and recruiter to conduct in-depth interviews and assess their suitability for the roles more effectively.

Ethical dilemmas involving AI

Despite AI’s benefits, concerns about its ethical risks remain.

One participant concurred that AI is unlikely to replace their recruitment staff but can enhance their work. She was, however, particularly interested in understanding how AI could support diverse hiring – such as gender, LGBT groups, disability groups and groups with a diversity of thoughts – to ensure a non-discriminatory hiring process.

Another participant raised concerns about navigating challenges, such as job candidates relying heavily on ChatGPT to prepare their resumes while job recruiters use AI to detect skill sets from resumes. Sam suggested the potential of “defensive AI” that can identify AI-generated applications. When complemented by human judgement, this approach could prevent technology from limiting the search for the right candidate or introducing bias.

Leon addressed the participants’ concerns about data privacy, acknowledging that AI is still an unchartered territory for many organisations regarding data integrity. He expressed optimism that with the appropriate measures in place, such as conducting regular AI audits, the future could see AI agents tailored to our individual preferences and skill sets.

By addressing these issues early in the AI integration process, TA leaders in the Pharma, Healthcare and Life Sciences sectors can effectively tackle such challenges and leverage strategic opportunities for greater success in talent acquisition.

AI and the future of hiring

Leon highlighted that in the past technological advancements often depended on standardisation of recruitment and HR processes and the challenge was integrating various enterprise systems and data sources into a cohesive platform. Application of AI and the new age Talent Intelligence platforms break the barriers and support in creating a unified system where all data and skills are standardised and accessible. 

We are just beginning to explore the full potential of AI in TA. AI is adept at handling extensive recruitment data, from applications to feedback. We should expect significant improvements in efficiency and more targeted support for skill – based hiring and experience focussed hiring. For instance, AI might alert us when a job is about to close or highlight diversity metrics, recommending actions like extending job postings or exploring specific sourcing channels.

The potential for AI to evolve and make an impact is substantial, and its sophistication and influence will continue to grow. The possibilities are exciting, and I am eager to see how AI will shape the future of TA.

As a leading global talent acquisition provider, AMS harnesses technology and innovation to explore how digital advancements, such as AI and data analytics, can help employers meet increasing demands efficiently. We are committed to striking the right balance between productivity, cost-effectiveness and meaningful human connection.

To learn more, please contact us.