AI in HR may feel like a burgeoning field, but it is already changing in some fundamental ways. For functions like human resources, who have already experienced rapid upgrades in technology and automation over the past few decades, AI has the potential to be even more transformative.

How can HR professionals leverage AI to make real change in their organisations? In this article, we’ll explore the role of AI in HR and People orgs, including how teams are using it, its benefits and some of the concerns and considerations all businesses should note down.

What Is the Role of AI in HR?

AI in HR relates to the use of artificial intelligence (AI) to influence, dictate and determine various HR processes along the employee lifecycle. As the presence of AI continues to increase in HR technology, we’re seeing its ability to automate key HR tasks.

This might include tasks like payroll, interview scheduling and benefits administration — but it can do so much more: from driving key decisions on hiring and retention to rapidly creating new job descriptions to analysing candidate data and predicting outcomes.

Eightfold AI surveyed 250 HR leaders in 2022 and released a report titled “The Future of Work: Intelligent by Design”, finding that a majority of HR leaders are already utilising AI across the department:

• Employee records management: 78%
• Payroll processing and benefits administration: 77%
• Recruitment and hiring: 73%
• Performance management: 72%
• Onboarding new employees: 69%

Josh Bersin, a well-known and respected expert in the field of HR, recently wrote an article about how AI will disrupt the HR tech marketplace. After speaking with 20 HR tech vendors to learn about their AI strategies, he came to this conclusion:

“While it’s still early days, I believe AI (and Generative AI in particular) is going to radically change the HR Tech landscape. Not only will systems be intelligent by design, they will have powerful conversational user interfaces, they will embed multiple AI models, and new disruptors will appear.”

With these new AI capabilities built into the technology HR teams use every day, we can expect to see enhanced efficiency, accuracy and decision-making across the function.

How are HR Teams Using AI?

It’s easy to suggest that AI in HR is going to change everything. But, how are HR teams currently using AI to improve their own work? Let’s jump into more of the specifics…

1. Recruitment and Talent Acquisition

Some of the earliest uses for AI in HR have been focused on improving the recruitment and talent acquisition processes. With AI-powered tools, HR teams can automate manual tasks and streamline candidate sourcing, screening and selection to cut down on time to hire. From posting jobs to analysing resumes to sending job offers, there’s room for AIi to make improvements across the board.

When used properly and intentionally, AI can also detect unconscious bias and eliminate it from the recruitment process. Using AI-generated algorithms to screen applicants results in a more objective ranking of a candidate’s abilities, preventing subjective and unreasonable assessment of skills.

2. Employee Onboarding and Training

Everyone who has joined a new company knows it can be overwhelming to experience the onslaught of paperwork, training, new information and things to remember during onboarding. Implementing AI in these processes makes it easier on both the HR team and the employee, as it can walk the employee through everything they need to do without constant HR intervention.

Once employees are onboarded, HR teams can use AI to continually support them with training, even to deliver training programmes personalised to each employee or new hire’s needs. Using an internal AI chatbot can offer continuous employee support while also enabling easier knowledge sharing.

3. Performance Management and Employee Engagement

AI can facilitate continuous real-time performance tracking, providing HR teams with accurate and objective insights on employees. Managers are able to use this to provide timely and constructive feedback that is based on objective data and improves employee productivity and engagement.

At the same time, AI-driven analytics can play a role in measuring employee engagement and satisfaction, opening up even more opportunities for HR to promote employee loyalty and prevent high rates of labour turnover.

4. HR Analytics and Data-driven Insights

AI enables HR to glean actionable insights by analysing large HR datasets. It also adds the capability of predictive analytics, helping teams to determine future patterns (e.g. an impending increase in turnover or future business-wide skills gap). As a result, HR professionals can use AI to forecast the need for future hiring programmes or proactively develop plans to upskill the existing workforce.

In summary, we can see HR teams currently using AI for the following core functions and tasks: