According to research, almost 1 in 4 organizations use AI in HR to support processes like recruitment, hiring, and performance management.
The same number of organizations want to start using AI in recruitment or are ready to increase its use over the next five years. Undoubtedly, AI in HR delivers value to companies, and it can improve the functioning of your HR department too.
In this article, we will explain the benefits of using AI in HR and give you various examples of using artificial intelligence to improve HR functions.
Benefits of using AI in HR
AI can support human resources management in many different ways, including:
By increasing efficiency and saving time on specific tasks, artificial intelligence can reduce costs in HR processes. AI can speed up operations like:
- Searching for candidates
- Contacting candidates
- Scheduling interviews
- Collecting documentation
- Providing new hires with answers to frequently asked questions
- Freeing employees from time-consuming and repetitive tasks
Employee engagement & satisfaction
Artificial intelligence and machine learning in HR technology can improve employee engagement and satisfaction in many ways.
For example, many companies already use survey software or a feedback system to measure employee sentiment. AI algorithms can also analyze this data, identify themes, tag employee comments, and structure the data. Then it can deliver valuable feedback for HR departments to act on.
Companies can use AI technology to distribute work more intelligently to avoid overload. This customization of work schedules can enhance employees' work-life balance, giving them more personal time and chances to work on development. In this way, AI in HR can improve job satisfaction and increase employee retention.
To further increase retention, HR teams can use artificial intelligence to invent programs for rewarding and engaging employees.
Many organizations are leveraging AI to track how employees use computers at work. By analyzing employee productivity and behavior, they can pinpoint unproductive, bored, or disengaged workers and identify those looking for other job opportunities. It allows HR professionals to take specific steps to improve employee experience and retain those workers.
Uses of AI in HR
Human resource industry benefits from the use of AI in multiple areas, including:
Automation of repetitive tasks
Though HR professionals have been using automation in HR for some time, AI makes that automation different.
For example, it can use Optical Character Recognition (OCR) mechanisms to read the content of scanned files and insert personal data into appropriate systems, e.g., payroll. By using AI for those processes, companies can reduce the number of time-consuming tasks, allowing employees to focus on more important things and minimizing the risk of errors.
Another interesting example of AI in HR is chatbots. They can take over answering questions that teams repeatedly get regarding:
- Labor law
- Remuneration policies, etc.
By answering those questions, chatbots can free HR practitioners to focus on more critical processes that don't have the potential for automation.
AI can help sift through candidates' applications based on selection criteria, significantly reducing the time the process takes. Chatbots can collect information about candidates, such as skills, previous contacts, and training.
When bots replace this first-level interaction, HR managers can focus on interactions requiring a more human touch and be more effective.
AI can have a tremendously positive influence on the onboarding process. It can improve the experience of new employee experience by providing them with the following:
- Training suggestions
- Key contacts
- Necessary information concerning benefits and policies
In other words, AI helps create a seamless onboarding procedure by providing personalized experiences. It enhances the process of employee adjustment to the new work environment and helps them understand what they need to do.
You can also use AI systems in career pathing. It can help realize employees’ full potential by providing personalized learning pathways, especially with employee training software.
Another way AI can improve employee training is by identifying skill gaps to tailor the course content to the needs of an individual employee. When HR professionals know their employees' skill gaps, they can act promptly to turn those weaknesses into strengths.
AI in HR helps measure and analyze employee sentiment on an everyday basis. Chatbots provide an always active communication tool. They personalize the conversations, analyze them, and can address specific concerns and needs of an employee.
With AI chatbots and feedback tools, HR teams better understand employee sentiment. By addressing the issues, they show employees that their voices matter, which leads to higher employee engagement and lower turnover.
Workforce analytics & planning
AI in HR allows businesses to analyze their workforce, manage it more efficiently, and identify areas for improvement. AI tools can deliver real-time data on employee performance, training needs, job satisfaction, engagement levels, etc. By analyzing a vast amount of data, AI can provide insights humans wouldn't be able to uncover.
By incorporating AI in HR, you can improve your hiring process, enhance talent management, identify skills gaps your employees might have, and get personalized training recommendations. AI tools can also analyze human behavior and provide relevant information on improving the work environment and increasing employee retention.
FAQs: AI in HR in 2023
What is the impact of AI in HR?
Artificial intelligence can improve the functioning of HR departments by quickening and making more effective various processes, such as:
- Talent acquisition
- Verifying documents
- Analyzing employee engagement levels
- Gathering and analyzing feedback
- Performing data entry tasks
- Updating employee details in databases
- Handling queries
- Creating training programs
- Checking for legal compliance
Is AI the future of HR?
In the past few years, the use of AI in HR has increased significantly. This trend is expected to grow rapidly in the near future. Сhatbots are expected to become more prevalent in the HR space. Also, the use of machine learning will increase. It will help create deeper insights by connecting different data points. For example, it can analyze employee attendance and determine whether payment is relevant.
How can AI improve HR operations?
AI can positively influence HR operations in multiple ways. It can significantly reduce hiring time, simplify organizational tasks, help increase employee satisfaction, improve decision-making processes, and relieve HR teams of repetitive, mundane tasks.
Which companies use AI in HR?
Many companies already use artificial intelligence to assist the work of their HR departments. Here are some examples:
You already know how Amazon uses AI to guide customers on its shopping site. The software controls the products you see based on your previous choices. It analyzes your information, such as membership details, age, and location, to offer similar products to similar people.
In the same way, Amazon utilizes new technology for human resources. For example, employees can record all the necessary information when they’re about to go on leave. Then the software transfers the information to the employees who ask for access.
L'Oreal, which receives two million applications a year, successfully uses AI tools to streamline candidate sourcing. Because of that, they can manage the recruitment processes with the help of only 145 recruiters, who select only 5,000 people from the two million applicants. They use a chatbot named Mya which performs such tasks as:
- Screening potential candidates
- Asking candidates questions
- Verifying their qualifications
- Resolving queries concerning the company
- Grouping candidates into "non-fit" and "best-fit" pools
For Unilever, using AI in recruitment was a critical step that allowed them to save over 1 million pounds in one year. AI helped them change their candidate sourcing strategies so that instead of focusing solely on experience, they could also concentrate on candidates’ potential.
Their new hiring model, called Future Leaders Programme, targeted college graduates. With the help of an AI tool named "HireVue Assessments," which evaluates video interviews recorded by mobile phone, they filtered nearly 80% of the candidate base collecting data from body language, facial expressions, and keywords.
Regardless of whether they selected a candidate for a position, candidates received feedback at each stage of the recruitment process.
The new approach benefited both parties: it saved more than 50,000 hours of candidate time and 75% of recruiting time for the company. HireVue helped Unilever achieve the highest level of diversity regarding the gender and ethnicity of new hires.