Artificial intelligent (AI) usage in human resources (HR) has emerged as a game-changer by enhancing efficiency and reducing the risk of overlooking qualified candidates, where the average initial résumé screening time is just 7.4 seconds. AI in HR enables managers to increase their efficiency and reach greater talent pool by making them reach underrepresented talent pools.
With 92% of HR leaders planning to increase AI adoption, we explore how AI is transforming HR, and how to leverage AI in HR management.
Top 7 AI in HR Use Cases
AI is transforming human resources by improving efficiency and enhancing decision-making. HR professionals can use AI tools across various HR processes to streamline tasks and boost employee experience.
Figure 1. Usage of AI in HR
Source: Eightfold AI
1. Recruitment and hiring
AI is widely used in talent acquisition. It helps HR professionals streamline the hiring process by automating repetitive tasks like resume screening, job descriptions, and candidate engagement.
AI-powered applicant tracking systems (ATS) can quickly scan resumes and match candidates to job requirements. AI tools also assist in writing job descriptions, generating Boolean search strings, and scheduling video interviews.
HR teams can leverage AI-driven chatbots to communicate with candidates, provide pre-interview briefings, and answer common questions. This reduces manual tasks and improves the overall hiring experience.
Real-life example
Challenge: Eaton faced challenges in bridging the talent gap within the manufacturing industry. Its traditional recruitment process needed modernization to enhance efficiency, improve candidate experience, and accelerate hiring timelines.
Solution: Eaton leveraged AI-powered talent acquisition solutions to streamline recruitment, ensuring a seamless experience for candidates, recruiters, and hiring managers. This transformation resulted in a fourfold increase in its talent network, a 30-40% boost in candidate velocity, and significant improvements across key hiring metrics.
2. Onboarding and offboarding
A smooth onboarding process improves employee retention and satisfaction. AI-powered platforms help HR leaders automate administrative tasks such as form submissions, policy distribution, and training scheduling.
When employees leave, AI simplifies offboarding. Automated systems can revoke access to HR systems, process exit surveys, and handle payroll processing efficiently. This ensures sensitive employee information is managed securely.
Real-life example
Challenge: Managing employee transitions efficiently was a challenge for RECROOM, with manual onboarding and offboarding processes leading to increased workloads, delays in access provisioning, and potential security risks.
Solution: RECROOM leveraged an AI-powered platform to enable zero-touch onboarding and offboarding, automating key tasks to streamline employee transitions. This reduced manual workloads, accelerated access provisioning, and enhanced data security, ensuring a seamless and efficient process.
3. Workforce planning
HR teams use AI capabilities to analyze employee data and identify trends. Predictive analytics help HR professionals anticipate workforce needs, detect skill gaps, and improve resource allocation.
AI-driven workforce management solutions allow HR teams to schedule employees efficiently based on demand. This leads to better structured processes and supports organizational success.
Real-life example
Challenge: Canford Healthcare faced difficulties in workforce planning due to fluctuating occupancy trends and complex fee structures across multiple care homes. Without real-time insights, optimizing staffing levels and maintaining profitability while ensuring high-quality care was a challenge.
Solution: AI-driven insights enabled Canford Healthcare to analyze occupancy trends and fee structures in real time. This data-driven approach empowered managers to make informed, agile decisions, optimizing staffing levels, maximizing profitability, and maintaining high-quality care.
4. HR chatbots and virtual assistants
Chatbots
AI-powered chatbots improve the employee experience by answering HR-related queries in real-time. These virtual assistants provide up-to-date information on benefits, leave policies, and payroll processing.
By handling repetitive tasks, AI-driven chatbots free up human resources professionals for more strategic decision-making and human interaction. This enhances employee engagement and satisfaction.
Virtual assistants
HR departments handle large amounts of employee data. AI simplifies data management by automating time-consuming tasks like updating records and scheduling meetings.
AI platforms also assist in payroll processing, performance management, and employee feedback collection. This reduces errors and improves efficiency in HR processes.
Real-life example
Challenge: TheKey needed to improve its application process, which was time-consuming and led to lower conversion rates. Manual processes and inefficiencies in hiring slowed down decision-making and integration with the broader hiring ecosystem.
Solution: AI-powered HR chatbots and virtual assistants streamlined the application process, reducing time to apply by 10x and significantly increasing conversion rates. By automating key tasks and providing valuable insights, these AI tools enhanced decision-making and improved integration with the hiring ecosystem.
5. Employee learning and development
Figure 2. How AI is used in learning and development in HR management
Source: SHRM
HR systems track employee learning progress, measure effectiveness, and even implement game-based learning. AI models can also provide immersive experiences using virtual or augmented reality and create personalized training programs.
By using AI in learning and development, HR departments can help employees develop skills, improve job performance, and build high-performing teams.
Real-life example
Challenge: Teladoc aimed to enhance employee learning and development but faced challenges in providing personalized, scalable mentorship opportunities. Traditional mentorship programs lacked flexibility and cross-functional engagement, limiting career mobility and tailored learning experiences.
Solution: Teladoc implemented an AI-driven mentorship platform that enables personalized, self-led mentorship experiences. This flexible, “choose your own adventure” model fosters cross-functional connections, supports career mobility, and empowers employees to tailor their learning journeys based on individual needs and goals.
6. AI for diversity, equity, and inclusion (DEI)
Figure 3. Roles of AI in supporting DEI efforts
Source: Eightfold AI
AI tools help HR leaders remove unconscious bias from hiring processes. AI-powered platforms can conduct blind resume reviews by masking names and demographic details.
AI also promotes pay equity and fair talent acquisition. By using AI in DEI efforts, HR professionals can ensure a more inclusive and diverse workforce.
Real-life examples
In the early times of AI usage in HR, AI tools might create some problems because of the AI bias, which is an anomaly in the output of machine learning algorithms, due to the prejudiced assumptions made during the algorithm development process or prejudices in the training data. In 2015, Amazon’s AI recruiting tool showed bias against women by penalizing resumes that included the word “women’s.”
However, AI tools are used by HR professionals to foster diversity and inclusion in workforce planning nowadays. 18 % of professionals stated that they use AI in HR to help identify potential discriminatory, biased, or non-inclusive language within their job descriptions.
7. Remote workforce management
23% of remote workers report that they are struggling with loneliness and 16% are experiencing difficulty in focusing.
AI-powered tools improve employee performance by encouraging and monitoring employees working remotely. The use of employee monitoring technologies is essential in the workplace, not only for boosting productivity but also for ensuring security.
4 Steps to implement AI in HR
Implementing AI in HR requires a structured approach to ensure efficiency, employee engagement, and business success. Here’s a step-by-step guide to successfully integrating AI into your HR function:
1. Strategize and plan
Assess current progress: Evaluate your HR department’s current AI adoption and benchmark it against industry standards.
Identify automatable tasks: Determine which HR tasks can be automated, such as meeting scheduling and leave processing.
Set clear objectives: Define key goals, such as improving hiring efficiency, automating administrative tasks, or enhancing employee experience with AI.
Assess impact: Evaluate whether AI will simply enhance tasks or fundamentally change job roles.
2. Collaborate and educate
Engage stakeholders: Involve HR leaders, IT teams, and other key decision-makers to align AI initiatives with business objectives.
Educate HR teams: Conduct workshops and training sessions to familiarize HR professionals with AI’s capabilities and ethical considerations.
3. Redesign job roles
Assess job impact: Determine which roles need reskilling, upskilling, or replacement due to AI implementation.
Adjust compensation: Plan for salary changes or severance costs for affected positions.
4. Monitor and adjust
Track progress: Regularly evaluate AI’s impact on HR efficiency, employee satisfaction, and overall business outcomes.
Refine strategies: Adapt AI implementation based on workforce feedback and new insights.
