Artificial intelligence (AI) is being increasingly used in the field of human resources (HR).
From recruitment and onboarding to performance evaluation, AI is now a crucial part of HR processes.
A recent study by Eightfold AI surveyed over 250 HR managers, revealing that 92% plan to expand their use of AI in at least one area of their work.
This article explores how AI is used in HR and the challenges associated with its implementation.
AI in HR: Past and Present:
The first AI-powered HR tools, such as applicant tracking systems and resume screening software, emerged in the early 2000s.
With ongoing technological advancements, AI applications in HR have expanded, introducing more sophisticated algorithms in recent years.
These improvements have enabled systems to learn from data, enhance their analytical capabilities, and provide intelligent predictions and insights.
Research by IDC indicates that by 2025, 80% of the world’s 2000 largest companies will use intelligent algorithms for hiring, firing, and training employees.
A survey by Eightfold AI identified the top five areas where HR departments currently use AI:
- Employee record management: 78%
- Payroll processing: 77%
- Recruitment and hiring: 73%
- Performance management: 72%
- Onboarding and training new employees: 69%
Will AI Replace HR Employees?
There is ongoing debate about whether AI tools will replace HR employees.
An article on Gartner suggests that AI tools are designed to enhance human capabilities and can help speed up tasks, rather than completely replace employees.
However, the HR field will not be immune to the impacts of AI and automation.
Jobs involving repetitive and simple tasks are more likely to be automated, while roles requiring problem-solving skills will be less affected.
Benefits of Using AI in HR:
AI offers numerous benefits to HR, including:
- Improving efficiency and productivity
- Streamlining processes like onboarding and employee termination
- Reducing costs
- Automating repetitive tasks and saving time
- Facilitating data-driven decision making
Applications of AI in HR:
Here are some key applications of AI in HR:
1. Recruitment and Hiring:
AI was first applied in recruitment and hiring.
AI-based applicant tracking systems can review resumes, identify key qualifications, and match candidates to job descriptions.
Recently, ChatGPT has been used in recruitment to write job descriptions and LinkedIn posts.
2. Onboarding:
AI-based onboarding platforms can help companies create engaging experiences for new employees, ensuring they complete necessary forms, share relevant policies, and schedule training sessions.
For example, Levity helps automate internal workflows using AI.
3. Virtual Assistants and Chatbots:
Chatbots and virtual assistants are popular AI tools in HR.
They can respond to employee inquiries about leave policies, payroll, and more, 24/7.
DRUID developed AI-powered virtual assistants that help HR staff with various tasks, including recruitment, onboarding, and administrative duties.
4. Learning and Development:
AI can enhance personalized learning experiences for employees, analyze their performance, and adapt the curriculum or content to their needs and preferences.
Novoed created an AI system that personalizes learning experiences by analyzing learners' profiles and activities, providing tailored course recommendations.
AI Tools for HR Professionals:
Several AI tools are available for HR professionals, including:
- Textio: Helps write job advertisements.
- Beamery: Manages employee talent and identifies skill gaps.
- Talmundo: Improves onboarding, automates repetitive tasks, and collects employee data.
- eduMe AI: Offers customized training lessons and courses for employees.
- Sanka: Automates HR tasks like employee offboarding.
By leveraging these tools, HR departments can improve their operations, enhance employee experiences, and make more informed decisions based on data.
