AI in HR: How HR Tech is Evolving
July 11, 2023

In HR, artificial intelligence (AI) has multiple, diverse applications. It’s used for self-learning technologies, for HR data processing in order to gain insights, or automate processes. Read on to learn about the latest developments in AI in HR, the common practices and processes where companies use AI, and the prospects for AI in HR.

The Future of AI in HR

2022 research shows that nearly 1 in 4 organizations are using automation and AI in HR. It also shows that the benefits of artificial intelligence in human resources range from time savings (85%) to better hiring (64%). Which some of these applications have been around for a few years now, things are evolving, and quite rapidly at that. We’re seeing a lot of new trends in HR practices using AI, and things will continue to change. 

What Will the Future of AI in HR Look Like? 

Today, AI in HR refers to the use of advanced, self-learning algorithms for HR data analysis, predominantly  to generate insights and recommendations or automate tasks 

As AI evolves, HR systems that use it can also get increasingly powerful. For example, five years ago, AI-based HR systems could possibly auto-recommend the top 10 candidates for a job. Now, it can generate scores that indicate exactly how aligned the candidate is with the role’s requirements. The future of AI in HR looks promising.

For instance, technology has already advanced to the stage where: 

  • AI algorithms get more accurate and provide smarter insights  
  • Data hosting to feed AI engines gets more affordable 
  • AI frameworks become available in the open-source domain to help HR technology developers 
  • Organizations get more digitally mature to support AI in HR adoption 

In the future, we can expect advancements in AI technology that it will not only shortlist candidates, but it will also select and automatically hire and onboard the right person for the job, at least for routine, entry-level roles. And this is just one example of what AI can do at scale. AI’s impact extends to nearly every field of HR, from employee engagement to performance management and data-related activities. 

Applications of AI in HR: 10 Emerging Trends 

The future of AI in HR will be shaped by the following 10 trends.  

1. AI-driven hiring will become the default mode of recruitment

For any HR department, the most time-consuming activity in the hiring process continues to be the review of resumes. Identifying the perfect candidate with the required abilities and experience amongst hundreds of resumes is the most difficult aspect of recruitment. Using AI, these repetitious manual screening processes are automated, at least partially. 

Resumes can be screened automatically using machine learning (ML) algorithms, and the system can then shortlist those that are most relevant to every position. Standardized job matching will undoubtedly save HR professionals time, and enhance the quality of their hiring. This is already being used in a few organizations and is one of the biggest benefits of artificial intelligence in human resources. In the next few years, we will see this trend grow, and scale such that every organization has the option to automate a large part of the recruitment and hiring process.  

2. Employee onboarding processes will be predominantly automated

Onboarding and inducting new employees is typically a tiresome and repetitive process, as anyone who has managed an onboarding program can attest. The problem gets worse in large, distributed enterprises, particularly now after  remote hiring is becoming the norm. Using AI, the HR team can configure and automate an onboarding procedure in a way that it is more structured, efficient, and individualized. AI technology can, for instance, automate the following stages of the new employee onboarding process:  

  • Verifying documents 
  •  Induction and orientation 
  • Organizing meetings with new employees 
  • Handling administrative tasks like creating ID cards and other such documents  
  • Handling IT device and network access requests 

3. Learning and development (L&D) platforms will integrate AI

Training and development for employees is another function that can very easily and efficiently leverage AI technology. AI tools and AI-based software can be use to design and customize learning programs for individuals based on their unique requirements and competencies, enabling employees to learn more efficiently and enhance their skills. 

AI-based products will give companies the power to offer several levels of training materials to workers based on their specific skills, work roles, and interests. There could, for instance, be a tool that recommends the most appropriate training programs based on the employee’s current skills and the skills gap that must be filled. Further, these AI systems could  provide individuals who have finished a course with additional courses that will help them update their abilities. Organizations can also use AI to set up self-service portals so employees have easy access to internal resources as well. The benefits of artificial intelligence for HR  are obvious particularly with talent development, upskilling, or reskilling.  

4. Employee referrals will be more accurate and predictable

Streamlining referrals is among the new trends in HR practices using AI. This refers to using AI to  assist HR departments in gaining a better understanding of employee recommendations or referrals, and make the employee referral process more efficient. The software can examine the types of applicants referred by employees and offer information as to who recommends the most successful prospects. It  can also be used to analyse performance data from prior referrals and identify when candidates similar to high-performing  employees are being recommended. This becomes particularly important in a tight talent market, and when companies wish to hire employees who will fit into the organizational culture.  

5. Human resource information systems (HRIS) will be more effective and beneficial

The dynamic relationship of AI with data management systems offers significant implications for large-scale HRIS installations. By integrating AI across the data management system, database query efficiency and precision may be boosted, while also optimizing how you allocate human efforts. This is among the top benefits of artificial intelligence in human resources. 

6. HR leaders will have to develop unique, high-quality skills as AI gains popularity

As stated in the Future of Jobs Report by the World Economic Forum, the demand for uniquely human capabilities will steadily increase. The World Economic Forum predicts that 75 million manual jobs will be lost due to the automation of everyday tasks and the use of AI. However, 133 million new positions will be generated, and emotional and scientific/technical intelligence, like technological design and programming, will be vital. Alongside the benefits of artificial intelligence in human resources, organizations will also have to consider these new requirements that will arise in the future. 

7. AI will improve employee productivity and performance management

Every individual brings unique abilities, interests, and attitudes to his position. They all want growth, but managers seldom have the opportunity to individually present their employees with a variety of tips for enhancing their abilities and performance. AI can be used to ease this process, thanks to new trends in HR practices using AI technology. 

By collecting personalized data on each individual, their role, and their talents, AI and ML algorithms may offer suggestions on the activities that other employees in comparable situations have undertaken to progress in other organizations. A strong trend we are seeing in the industry today isusing AI tooffer tailored learning advice and performance goals depending on employee abilities and positions by analyzing prior performance patterns. 

AI will also assist with performance management programs like monitoring team productivity, and finding areas for improvement. 

8. Attrition will fall, thanks to the use of AI in HR 

Employee engagement is based on several organizational variables. Various workers demand different perks, incentives, inspiration, and guidance. 

AI systems are capable of learning from past patterns and establishing a benchmark for interaction variables for each collection of attributes. It may then identify a pattern of employee turnover based on employee expectations and discontent. AI will be able to aid HR managers in identifying possible retention risks and preventing top employees from leaving the organization – a massive benefit of using artificial intelligence in human resources. 

9. HR chatbots will become commonplace

Employee engagement is a discipline unto itself, and monitoring and evaluating worker sentiment on a daily basis is a component of this science. With insight from  sentiment analysis of data around employee queries, AI-powered chatbots can ensure that the employee engagement process is a continuous, fruitful one.  

Chatbots can be nearly realistic, human-like, and always-available, and involves the user in personalized interactions. These dialogues can then be examined and used to address the employee’s unique issues, desires, and requirements.  In addition to using AI in HR though, a human must be in the feedback loop, something commonly referred to now as “HITL” or Human in the Loop”. 

10. AI will drive almost all HR decisions

An automation tool cannot totally replace human decision-making, but a well-implemented AI system can provide you with the necessary analytics and data to make smarter, more effective, fact-based choices. 

AI technology can be used to conduct surveys, collect feedback, and evaluate diverse business-related data such as productivity levels, employee engagement, performance, and areas for improvement. With vast, important, and specialized information at hand, HR directors would be able to make sound, more-informed decisions. 

In the future, AI will enable true prescriptive HR analytics – i.e., systems and dashboards that auto-generate actionable recommendations in a natural language.


Want to Get Started With AI in HR? Start Using these 4 Tools 

In many ways, the future of AI in HR is already here. There are several HR technology solutions that offer powerful in-built features driven by artificial intelligence, so you do not have to invest in complex AI training, algorithm development, or hosting data.  

To fast-track your journey toward the future of AI in HR, here are five tools you can start exploring right now: 

1. AI-powered robotic process automation (RPA)

Organizations that are taking their first steps with using AI for HR could start with RPA, that automates and eases several manual tasks. It can relieve workers of mundane, repetitive tasks so they may focus on more strategic and meaningful work. 

Employee onboarding is a fantastic example of how RPA powered by artificial intelligence can simplify processes. According to their department and position, multiple qualifications and documentation may be required from each employee. The RPA system can quickly identify and obtain the relevant paperwork for each employee based on predefined criteria. 

2. Unified HR Tech suites powered by AI

This type of software is an all-inclusive HR solution. It will assist you right from the start of the employment process, with responsibilities such as assessing the best applicant referral sources. It can provide predictive data and interaction strategies to keep applicants and employees engaged throughout the employment lifecycle. It might also involve workers with a training chatbot as a retention management strategy. Artificial intelligence, here, is seamlessly interwoven into the HR technology suite and makes every feature better. 

3. Social experiences in the workplace powered by AI 

There are several employee social media platforms that help in engagement, recognition, and rewards. Just like regular social media, these platforms use AI algorithms to boost relevant posts, highlight available communities, and nudge users toward greater engagement. This is among the top new trends in HR practices using AI, which uses machine intelligence to build human connections.  

4. Artificial intelligence in payroll 

The most sophisticated payroll tools today already use AI. It helps in continuous data ingestion and validation. The AI can perform automated compliance checks, and if there is any error, the AI knows who to approach for approval. This type of HR technology gives you a headstart on the future of AI in HR by paving the way for salary benchmarking, pay equality, etc.  


Final Thoughts

The potential for AI in shaping the future of HR is limitless. HR tech companies are building this future by investing in emerging neural technologies, intuitive voice bots, touchless interfaces, and prediction engines.


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