HR and L&D Trends

How AI is Used in Human Resources: The Main Things You Need to Know

ai in hr

There is no doubt artificial intelligence (AI) has a revolutionary impact on businesses regardless of the industry. AI is being applied in different disciplines and sectors today, with human resources being the biggest beneficiary. Why AI? For an organization to operate productively, it also has to efficiently combine its business objectives, the technology at hand and employee needs and this is where AI comes in handy.  

The ability of AI to use its high-computing power and algorithms to process massive amounts of data is what makes it possible to automate and streamline multiple HR functions. From automation of HR roles to managing talent in the workplace, AI is continuously improving organizational efficiency, enabling fast service delivery. It explains why 32% of employees were using AI in 2018, which jumped to 50% in 2020. To add, 65% of the employees are happy working with their AI co-workers, such as robots or AI-assistant tools. In fact, 64% of employees trust robots more than their managers, and would willingly ask for guidance from a robot instead of their managers. 

In this article, I shall take a look at the ways AI has been beneficial to HR, its wide applications, and how the future looks like for the HR professionals. The blog is particularly useful to someone who wants to understand in detail:

  • The role of AI in HR and its significance
  • AI reinventing the HR space
  • How the future looks like for HR and potential challenges to HR specialists
  • The various applications of AI in the area
  • AI and HR symbiosis 

Role Of AI In Human Resources and Its Importance

HR plays a pivotal role in creating a conducive and serene working environment for every employee, guaranteeing safety and streamlining different operations. For an organization to be efficient and productive at the same time, it has to have a quick troubleshooting mechanism, and where possible incorporate intelligence of technology to streamline the human resources management process. AI, in this regard, comes in handy in revolutionizing the HR in different aspects of the department, including recruitment, learning and development, and HR administration. 

AI has improved the employee experience tremendously, automating repetitive tasks and taking on low-value tasks, giving HR teams the ample time to concentrate on strategic, high-value work. AI, in this regard, has contributed to significant cost savings and improved data-based decision-making in HR departments. A 2020 survey by Gartner indicates that 17% of companies use AI-based technologies in their HR functions, a number projected to reach 22% by 2022. Another survey from IBM shows 66% of CEOs strongly believe AI will add a significant value to their HR departments as employees begin to focus on high-value work as machines come to do the rest. 

AI Reinventing the HR Space

AI implementation has been greeted with open arms, presenting what turns out to be an optimistic opportunity to make human lives easier and a lot fun. From making machine learning models produce the most accurate predictions and estimations through data labeling, AI has shown its potential in creating a better and secure future for generations to come only if properly understood and put into use. The HR space has not been left out either, with the integration of AI in HR processes reverberating confidence in organizations. Today, employees are more optimistic in the workplace as AI continues to improve the relationship between the workers and managers, and, as mentioned earlier, majority of workers are now preferring to seek advice from a robot than going to the manager. In this regard, HR departments across the glove are becoming more AI-driven and promising in terms of efficiency in service delivery. 

The Future of HR With AI Implementation and Potential Challenges to HR Specialists

It expected that AI will continue to redefine HR in the foreseeable future. HR professionals should get ready for a hybrid type of HR, where human and automated processes work hand in hand. As HR specialists continue to redesign the HR to be more human-centric and personal, they should also develop fluency in AI and embrace it for future use.  However, HR teams should also expect a myriad of challenges with AI’s implementation and be prepared to overcome them by keeping up with HR and AI trends, as the technology continues to evolve. For example, data security and privacy is a number one challenge that employees will want to address as they allow AI to gather and use their data. 

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Various Applications of AI in HR

The HR department is the backbone of any organization, from recruitment to staff training. The future will combine both human and digital power to automate processes and tasks, and thus, more manual work will be removed. Hence, AI will offer various applications, including:

  • Automation of repetitive, administration processes: AI is efficient at automating low-value tasks as it gives more time for professionals to focus more energy and effort on strategic planning. In HR, tasks such as pre-screening candidates and scheduling interviews can be done easily with the help of smart AI technologies. A study by Eightfold revealed how 19% of HR employees performed administrative work more effectively with the help of AI software than those who did not. 
  • AI-enabled recruitment and onboarding: According to Deloitte’s 2019 survey report, only 6% of the respondents admitted having cutting-edge recruitment processes technology, while 81% reported their organizations falling far behind with below standard technologies. The report leaves glaring opportunity for HR professionals to adopt AI-driven recruitment and onboarding processes technology and witness the efficiency these smart technologies bring to organizations. Take recruitment, for example, HR managers can use AI to create user-friendly forms that would otherwise lock out other job applicants. On onboarding, HR teams can proceed with the onboarding processes for their employees even outside working hours by letting AI do the job.  
  • Internal mobility and retention: AI presents a chance for HR leaders to improve their internal mobility and employee retention through technologies such as personalized feedback surveys. HR departments will be able to gauge their workers’ engagement and overall job satisfaction, something that was never as accurate as it is now. More importantly, HR personnel will be able to identify with ease which employee needs a promotion and who might consider quitting, something that boost the organization’s retention efforts early enough. 

AI and HR Symbiosis

To conclude, AI in human resources has brought about a significant shift in how organizations operate across the world. AI technology has changed how recruitment is done in various organizations, for example. In addition, the successful implementation of “AI recruiters” has helped automate scheduling interviews and provide real-time feedback to the applicants. However, AI is facing challenges, including data privacy and security issues, and time-consuming maintenance processes. HR teams, therefore, must come up with ways of addressing these challenges as they continue to roll out more AI solutions across HR departments. Otherwise, the future with AI-driven HR is bright and promising!

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