AI in HR and Why It’s Super Important for Your Organization

AI has evolved dramatically in the past few years and is still not a replacement for HR. When used right, it can be a powerful tool in the HR toolkit. AI can process data much faster than humans, but it is still in its nascent stage and is far from understanding the emotional side of human relations. AI can in no way replace the human touch required to demonstrate human emotions and empathy. For a people-oriented process like HR, this is an imperative requirement. Although AI in HR has a long way to go, it can currently be combined with other software and skills to completely redefine HR practices.

HR Technology Trends that Include AI

The use of AI in human resources is not new. HR professionals are familiar with a wide range of HR technologies. They have been using it for a while now to make their jobs easier, but the real game changer is the introduction of chatbots.

Chatbots

Chatbots are AI-powered virtual assistants that can help you with your HR-related inquiries. They can answer queries, schedule interviews, and contribute to data collection. They are very easy to use and cost-efficient since they don’t require any human resources input. This means that they will be able to provide an excellent customer service experience without costing you anything more than the initial setup fee.

AI has also been a great help in simplifying other aspects of HR practices, specifically recruiting, retention, and engagement. It can be used to predict job performance, automate hiring decisions, and even predict employee turnover.

Hiring

In the recruitment process, AI helps by analyzing and screening thousands of resumes in a fraction of the time it might take HR teams to do so. By incorporating smart algorithms, resume keywords, and skill screening, AI can help in finding and shortlisting candidates that are most likely to be good fits for the company. It can also provide insights about candidate skillsets and what kind of role they would be the best fit for.

Employee Engagement

Any HR process must be able to engage employees. One of the most important advantages of AI is its ability to help shape effective employee engagement efforts. By examining data from surveys and interviews, it can spot possible bottlenecks before they occur.

Employee Retention

In employee retention, AI is used to analyze data from pulse surveys, employee feedback, and even exit interviews to find out what employees are looking for in a company, thereby minimizing the attrition rate. This has helped in developing employee retention strategies that enable HR to retain talents for longer. In turn, it helps lower hiring costs and maximize resources.

Leveraging Machine Learning Techniques for HR Practices

Machine learning is the future of HR. It can be used to predict employee performance, identify talent, and develop training programs. When combined with artificial intelligence, machine learning is a powerful tool that can be leveraged by HR professionals to make better decisions and improve HR practices. It can help them identify talent and predict employee performance. Machine learning recruitment software and hiring software are becoming increasingly popular in the workplace.

Why have AI researchers been so focused on developing AI for HR?

From finding the right candidates for job openings to keeping track of employee data to ensuring a healthy workplace culture, HR professionals have various things to look into. In addition to this, they also manage the company’s budget and have to ensure that they are meeting their goals.

When AI came on the scene in 2000, numerous studies were conducted to research its application across different fields. Human resource development was just one of them. However, it was only in 2018 that the advancement in AI and its actionable usage in automation piqued the interest of HR solution providers and technologists worldwide. The new demands and challenges of a fierce business landscape have led to a boost in AI research.

Every year, the HR technology industry grows at a rate of 5.8%. According to Fortune Business Insight research, the HR technology market is set to hit $35.68 billion by 2028, up from $24.04 billion in 2021. Researchers and HR solutions providers are recognizing the financial, social and economic opportunities that AI-powered tech is set to unleash.

The interest is clear from the development of solutions such as the chatbot called CoachBot for UK’s NHS. Another example is Ellen, an AI app that connects people seeking mentors with people, which want to mentor. Then there’s tech giant IBM, who uses AI to increase the engagement of job applicants.