Do you believe Artificial Intelligence in HR is the future game-changer?

Artificial Intelligence (AI) is not the FUTURE, it is ALREADY HERE.

According to Wikipedia, “Artificial intelligence (AI, also machine intelligence, MI) is intelligence demonstrated by machines, in contrast to the natural intelligence (NI) displayed by humans and other animals.”

In a post by Josh Bersin, Founder and Principal at Bersin by Deloitte, it is mentioned that “AI is all about a wide range of machine learning tools and algorithms that quickly provide data, identify and predict patterns for informed decision making. The systems can understand speech, identify photos, and use pattern matching to pick up signals about mood, honesty, and even personality. These algorithms are not “intuitive” like human beings, but they are fast, so they can analyze millions of pieces of information in seconds and quickly correlate them against patterns.”

AI has transformed our lives at home and at work and has become an essential part of the technology industry. Besides, artificial intelligence is continuously evolving into a smart, intelligent assistant for people to work smartly. You may have seen people using Amazon’s Alexa to control the lights and unlock their car. The power of chatbots has helped in personalizing the shopping experience. Digital personal assistants like Siri and Google Now, on iOS and Android platforms, are being used to find useful information by using your voice. For example, you can ask “What’s on my Calendar today”? and your question will be answered instantly.

Types of AI Used in HR

Some of the different types of Artificial Intelligence in HR that are widely used are:

Conversational AI

Natural language processing (NLP)-powered HR chatbots and virtual assistants assist HR in providing candidates and employees with 24*7 assistance. In addition, these AI technologies can provide individualized learning recommendations and assist employees with benefits enrollment. They can also respond to inquiries about HR policies and increase employee engagement.

Generative AI

It uses large datasets to create new images, text, and videos. HR professionals can use this form of artificial intelligence in HR to generate job descriptions, learning materials, personalized candidate outreach, and workforce planning support.

Machine Learning

Machine learning allows AI to learn from data and continuously improve. In HR, it helps predict employee turnover, match candidates to suitable roles, and suggest fair salary ranges. Some models use (supervised learning) to make specific predictions, such as determining if a candidate fits a position. While others analyze large datasets (unsupervised learning) to identify patterns, like uncovering reasons behind higher turnover in certain teams.

AI Voice Technology

In order to improve response times and accessibility, virtual HR assistants use AI voice technology to manage questions, provide round-the-clock help, and escalate more critical concerns to a real person.

Automation AI

This helps businesses leverage artificial intelligence in HR to automate repetitive tasks, such as screening resumes and payroll processing. Eventually, it reduces the risk of human errors and improves efficiency.

Applications of AI in HR

People now are more inclined towards products and services that are highly responsive. It was observed that by 2024, 82% of consumers demanded instant replies from brands when engaging through live chat.

Responsiveness is the major reason for many consumer brands to build AI into their products. Therefore, these brands have chatbots that could provide services 365x24x7 and resolve customer queries. 

Similarly, at the workplace, employees have similar expectations when it comes to having a positive work experience. Hence, HR leaders have started to pilot AI for HR, using chatbots to transform employees experience in the workplace.

AI in HR can enhance the efficiency of the department in a variety of ways. This includes hiring, training, boosting employee retention and engagement, workforce planning, predictive analysis and more. There are many applications of AI, especially generative AI, to improve HR operations. With  HR technology trends on the rise, the benefits of artificial intelligence in HR are becoming increasingly evident.

AI in HR plays a significant role in Human Resource Management in 6 ways.

Streamlining Recruitment

Most of the hiring decisions are made on gut feeling. The interviewers usually take less than a minute to decide whether an interviewee is an ideal match for the job or not. Generally, there’s no data that supports these decisions. A random decision to hire people, based on candidates’ appearance, speech, experience, and the way they present themselves, is made. That’s the major underlying reason behind recruiters and hiring managers complaining about getting 30 to 40 percent of their candidates wrong.

In contrast, AI algorithms simplify the task by searching resumes, finding eligible internal candidates, identifying top performers, and analyzing data about shortlisted candidates who are more likely to succeed. AI in talent acquisition even eliminates interview bias.

Attracting Top Talent

Attracting top talent is a tough task. LinkedIn, Glassdoor, Indeed, Monster, etc., are popular job searching websites that employ machine learning algorithms to offer recommendations to job seekers. They collect data by monitoring users’ activities. These include their profile, posts, browsing history, page visits, clicks, connections, and other criteria. Then, the data is analyzed to offer the best recommendations to the job seekers. That’s how these algorithms and AI recruiting help recruiters attract potential talent.

Screen and Shortlist Resumes

Recruiters in the HR department are always weighed down with the time-consuming task of screening and shortlisting hundreds or thousands of resumes to fill a single job position. But now, with the rise of artificial intelligence in HR recruitment, technology in this field has advanced significantly. Tools like HireVue and Paradox’s Olivia automate resume screening and candidate interactions, enhancing efficiency and reducing bias.

In particular, software vendors offer Applicant Tracking Systems (ATS) that quickly parse resumes and filter all candidates that match the job requirements. Through AI, recruiters can now automate repetitive, time-consuming screening tasks. Recruiters can auto-screen thousands of resumes in just a few minutes. 

Hence, artificial intelligence in HR simplifies the hiring manager’s task by presenting all candidates in order of priority, starting with the candidate who best matches the job or has the most relevant skills. Therefore, AI can enhance the entire hiring process by helping identify the best candidates while also reducing recruitment time.. 

Automate Onboarding

The next step to recruitment is onboarding. It’s a key part of new hire induction. Today, nearly every company is channeling its efforts into building a truly well-crafted onboarding experience for its employees. Companies like Hitachi and Texans Credit Union utilize AI to automate onboarding tasks, improving new hire experiences. Interestingly, onboarding statistics also say the same thing about the process. According to a well-known study conducted by the Brandon Hall Group for Glassdoor, a robust onboarding process increased new hire retention by 82%. Furthermore, researchers discovered that effective onboarding increased new hire productivity by more than 70%.

That being said, artificial intelligence in HR can pave the way for a smooth onboarding experience, especially in today’s remote work culture. Further, it can help by automating the delivery of hiring documents, company policies, login details, and also creating a personalized experience for the new hires.

Employee Learning and Development 

Providing seamless employee training, demands significant time and resources. Yet despite the effort, the global Learning and Development industry generates over $200 billion, with most learning professionals reporting that at least half of this investment goes to waste.

Most often, managers and HR don’t know “what an employee needs to learn” to do a job better and become productive. Experts look up to artificial intelligence to solve this problem. AI in performance management is emerging as a key solution.

It’s great that we have algorithms to quickly pull data and sort it on different parameters. These include age, culture, previous learning experiences, educational background, work experiences, performance, activities, and behavior of individuals. These algorithms can then analyze the data to create custom learning programs for them.

Usually, companies that are already using AI algorithms have made learning as enjoyable as watching a movie on Netflix or playing a game on PlayStation. Gamification has made this possible. Organizations like Bank of America use AI to develop realistic training simulations, enhancing employee skills. Additionally, the integration of tools like VEED’s AI-powered Text-to-Video can revolutionize corporate training and onboarding, allowing HR teams to convert their training materials into engaging videos, thus simplifying the learning experience and catering to a diverse range of learning styles.

To sum up, AI empowers HR to manage talent effectively, building a workforce prepared for the future. It helps to customize learning plans, mentorship, assignments, and career paths according to each employee’s unique skills, interests, and goals. Artificial intelligence in HR further supports upskilling and reskilling by suggesting personalized training programs that enable flexible, on-demand learning. 

Employee Attrition

We all know that high employee turnover is a costly and challenging problem, especially for small and midsize businesses. Companies use AI and machine learning to accurately predict employee exits based on employee transactions and other behavioral patterns. InFeedo’s AI platform helped companies like Crowpton save 62–88% of at-risk employees by combining attrition prediction with engagement initiatives. 

With the data insights, AI equips the leadership and human resource department with employee satisfaction levels and predicts future sources of turnover. This helps in identifying and addressing individual or departmental issues before the problem becomes bigger.

Engagement & Employee Self-Service

AI in employee engagement helps identify patterns and reasons that cause dissatisfaction in employees and adversely affect their engagement and performance. An employee can feel demotivated and disengaged due to various reasons, such as work-life imbalance, workload stress, or lack of resources. With AI tools, organizations can thus address these issues promptly and support their workforce by improving employee satisfaction and engagement.

Companies like LinkedIn offer 1:1 coaching to all employees, fostering confidence and satisfaction. Further, Intelligent HR chatbots are used to make interactions quick and easy. By acting as virtual assistants, HR can address all employee queries and meet their needs. 

Besides, employers now also prioritize employee experience to keep the workforce engaged. Artificial intelligence in HR further helps in accessing and managing HR information in real time, therefore reducing the need for manual human responses with self-service capabilities. Self-service portals empower employees to access information and complete tasks on their own, thereby enhancing their satisfaction. Additionally, it can also tailor support and resources to each employee’s unique preferences, needs, and work habits, ensuring they feel appreciated and supported throughout their career journey.

Workforce Planning

Workforce planning is very crucial for HR departments, and AI plays a significant role in optimizing this process. AI-enabled analytics tools can analyze enormous volumes of employee data to uncover trends, forecast attrition, and identify possible skill gaps. It also helps in allocating resources and in making informed decisions to support long-term growth. 

AI-powered data-driven workforce planning enables HR departments to be more flexible and agile, meeting organizational demands in a job market that is ever evolving.

Agentnoon simplifies operational workforce planning by synchronizing live data from HRIS systems or Google sheets and maintaining accurate employee headcounts. It rapidly predicts the financial impact of staffing changes, visualizes the hiring progress, and tracks planned vs actual roles.

Future of Artificial Intelligence in HR

By 2030, AI will be integrated into our lives as our personal assistants, therapists, career counselors, and many more. We will interact with a wide range of AIs in our day-to-day lives. This will feel as natural as we interact with a human today. The next big step for artificial intelligence in the coming years is applying advanced AI in the real world. Large language models will handle much of the cognitive work, while humanoid robots will take over the physical work.

The future of Artificial Intelligence in HR will shift heavily toward strategic functions such as talent management, employee well-being, and building a positive workplace culture as automation takes over routine tasks. Moreover, HR will rely on AI-driven data to make better decisions about employee development, goals, and workloads. However, they will also need training to balance AI insights with human judgment to address employee concerns about fairness and transparency. kforce engaged. Intelligent chatbots are used to make interactions quick and easy. By acting as virtual assistants all HR queries from employees can be addressed to meet needs of employees.

Last thought…

Expectations from Artificial Intelligence are sky high now. AI offers a platform to engage employees as co-creators of a strong, smart and advanced workplace culture. This steady progress in artificial intelligence in HR has transformed the way employees perceive their jobs, work relationships with colleagues, and their contribution towards the company’s growth.

Frequently Asked Questions