AI in HR
Table of Contents
Table of Contents
What Is AI in HR?
The use of artificial intelligence (AI) technology and techniques to automate and optimize operations in human resources (HR), such as hiring, performance evaluation, employee engagement, and strategic planning, is referred to as AI in HR.
HR is an essential element of every business since it directly affects the lives of the company’s employees. The importance of a healthy working environment for workers directly impacts the quality of their work.
As one of today’s most sophisticated and rapidly increasing technologies, AI greatly contributes to automation in the HR industry.
Should Human Resources Use AI?
AI can definitely assist HR specialists in automating repetitive tasks by suggesting smart predictions for hiring and employee management. HR’s responsibility is to ensure that every employee feels comfortable and receives the necessary assistance to do exceptional work. AI-powered solutions can help do all of that.
Still, depending on the company, amount of data and tasks that AI technologies handle, there may be drawbacks. Below, we’ll introduce the benefits and drawbacks of using AI in HR.
Benefits of AI in HR
As already mentioned, AI has the potential to significantly aid HR professionals by streamlining mundane tasks. This can be achieved by automating certain processes and reducing the time and effort required to perform these tasks. Additionally, AI can also make informed recommendations to HR professionals for hiring and managing employees. These suggestions are based on data analysis and smart predictions, allowing for data-driven decision-making that can improve the overall efficiency of HR processes. Let’s break this down in more detail.
Choosing the best employee is not the easiest task. However, with AI, HR managers can accelerate the process of interview analysis. Computer vision and recognition technologies allow for examining the interviewee’s facial expressions, body language, and even verbal tone. In addition, due to natural language processing (NLP), AI can help HR managers quickly analyze and shortlist thousands of CVs according to their hiring criteria.
While skilled HR professionals seek to do their best to improve the quality of their work, the decisions they make might only sometimes be the most suitable for the company because there’s always a risk of subjectivity and human bias. What can AI do here? AI would be able to examine vast amounts of data and provide HR professionals with valuable insights to make informed decisions. This simply means that the probability of making a mistake would be lower. This data analysis would be useful for employee performance management, company-wide surveys, and more. This would enable the company to understand better employee needs and preferences, which eventually leads to improved engagement and job satisfaction.
Enhanced Employee Engagement
AI can help HR specialists track each worker’s activity and engagement. This would help them understand who does their job the best and who is often distracted or absent. As a result, only enthusiastic and motivated employees would continue working, which would help the company perform better.
Real-Time Feedback and Support to Employees
More sophisticated AI models are able to monitor activity in real-time and alert whenever needed. This can assist the workers in remaining engaged and motivated. An AI-powered platform, for example, may send staff pulse surveys, check-ins, or individualized growth plans.
Drawbacks of AI in HR
However exciting, AI technologies are not easy to design and implement. To successfully incorporate AI in your HR activities, you need to be aware of the potential drawbacks and consider ways to address them.
AI systems are not always adaptable to shifting situations or fresh data inputs. Typically, you insert the data to get the model running, but over time a lot can change. This might lead to obsolete or irrelevant HR choices that do not consider the organization’s or its workers’ evolving needs. Especially in a fast-growing company, the data needs to be refreshed, well-labeled, and integrated again.
The application of AI in human resources poses ethical concerns about transparency, data privacy, and justice. For example, who is liable if an AI-powered decision results in undesirable outcomes? Or, what if a computer-generated decision is biased against a certain group of employees? Besides, there’s the issue of confidentiality and security. Many companies and employees may not like having their information processed through AI systems.
AI systems can generate forecasts about employee behavior or performance based on data, but these predictions may not always be correct. This might lead to erroneous judgments on staff promotions, growth, or even firing that will not benefit the company. A rule of thumb here would be using AI to accelerate decision-making but always double checking if the decision is factual and fair.
Custom AI system implementation can be costly, and continuing maintenance and training can add to the cost. This would be a strong disadvantage, especially for startups and small companies. Besides, it takes time to design a decent AI model with little bias and accurate outcomes, so again, it would make more sense for bigger companies.
How AI Can Be Used in HR
There are many ways to incorporate AI-powered applications into an HR workflow. Here are some of the major things that AI can do for HR.
Improving Employee Happiness and Engagement
AI can give a more smooth, more efficient experience for employees. AI-powered HR software, for example, may give employees a self-service portal via which they can access information, request time off, and manage their benefits. AI may also be used to personalize the work experience, such as presenting employees with customized information and suggestions based on their job, performance, and career objectives.
Talent Acquisition and Recruitment
AI may help with recruiting by discovering and attracting top candidates, assessing resumes, arranging interviews, and performing preliminary interviews. For example, AI-powered systems may evaluate resumes and match individuals to job criteria, saving time and effort that would otherwise be spent screening resumes manually. AI may also be utilized to conduct preliminary interviews, assisting in quickly and effectively identifying the most promising individuals.
One of the key benefits of AI in HR is its capacity to automate regular operations such as data input, employee onboarding, and benefits administration. For example, AI-powered HR software may automate the process of gathering and organizing employee data, decreasing the time and effort necessary to handle this information. By utilizing AI, HR managers may free up time and resources to focus on more strategic objectives such as employee development and retention.
Tips for Successfully Using AI in HR
Interested in incorporating artificial intelligence into your company’s HR? Here are some tips for getting started.
- Identify your goals. Before integrating AI in HR, it’s critical to define your goals and decide how AI can help you reach them.
- Select the appropriate tools. There are several AI solutions available for HR, so it is critical to select the most appropriate for your company and align with your goals.
- Maintain data quality. AI relies on data to make intelligent judgments; thus, the data used must be reliable, thorough, and up-to-date.
- Have an ethical usage strategy. It is critical to ensure that AI is utilized responsibly in HR and to create a plan for dealing with any ethical problems that may arise.
- Invest in training. In order to make the most of AI, HR personnel need to be trained on how to utilize the technologies and comprehend the information they are working with.
- Regularly monitor and evaluate. Because artificial intelligence is a growing area, it is critical to continually monitor and analyze the tools and procedures in place to ensure that they are producing the expected results.
- Collaborate with IT. To guarantee the successful adoption of AI in HR, it is critical to work with the IT department to be sure that the technology is fully integrated and functioning.
AI Tools for HR
You now know what AI can do for your HR function, the risks and challenges to be aware of, and how to get started with an AI system. But what tool will you use? Read the following list to learn about some AI tools that might work well for your company.
Eightfold’s AI-powered technology instantly connects potential candidates to open positions in the company. It is also one of the few recruitment systems that include employee coaching and skill development elements.
A platform driven by artificial intelligence that helps firms assess and evaluate job candidates based on their skills and abilities instead of their typical background and experience.
The platform is intended to assist organizations in streamlining and automating different areas of the recruiting process, such as applicant sourcing and screening, employee data management, and performance monitoring.
Through a combination of sourcing, interaction, connections, analytics, and collaboration tools, hireEZ’s approach allows you to hire at scale and automate manual time-consuming tasks.
Findem provides a unique way of finding potential candidates by utilizing technical and non-technical characteristics, which cannot be achieved through conventional keyword-matching methods.
Questions You’ve Asked Us About AI in HR
Tatevik is a content marketer, and an AI and computer vision enthusiast with demonstrated experience in technical writing. Passionate about innovation and AI-powered solutions. Loves sharing expert insights and educating individuals on tech.