AI’s Impact on HR Operations and Management

AI models have grown in popularity in recent months, and so has the variety of AI implementations in HR. One of the most popular examples of conversational AI in use is ChatGPT. In the first five days after release, it earned 1 million users. Now, according to recent data, this number has crossed 180 million and keeps growing!

But ChatGPT is not the only AI implementation that people use daily. From voice search and personalized ecommerce recommendations to self-driving cars and smart healthcare systems, AI is penetrating most tech-driven industries.

In this article, we will focus on the use of AI in HR, discover top AI implementations, and look at the benefits as well as challenges that may wait for you on your way to AI-powered transformation. Keep reading to prepare for the exciting journey of integrating your IT infrastructure with smart technologies.

Why AI Is Such a Big Deal for HR

Artificial intelligence involves the development and deployment of computer systems capable of performing tasks that typically require human intervention. This revolutionary power of technology is transforming the way people do their jobs.

Tasks that artificial intelligence can do include learning, having conversations, answering questions, solving problems, reasoning, etc. These capabilities enable AI to automate tedious and repetitive tasks in spheres like manufacturing, healthcare, fintech, ecommerce, etc. Human resource management is no exception: by 2028, the AI HR market is expected to grow to $10.7 billion, with a CAGR of 15.3%.

AI for HR: 3 conditions for successful adoption

When it comes to the implementation of AI in human resources, it’s essential to discuss three vital conditions that determine organizational success. To make the application of AI as effective as possible, follow these rules:

1. Debunk myths

The term artificial intelligence, in fact, has nothing to do with actual intelligence. It’s only the simulation of human brain processes performed by computer systems. However, because of its loud name, many people have fears concerning the use of artificial intelligence in human resources. Here are the main ones:

• AI will compete with humans. There exists a common fear that AI will outperform and even replace people at work. This is why many leaders postpone implementing AI for work purposes. But as said above, AI does not bear the real intelligence to take initiative or make independent decisions. Its work is based on the data you give when teaching and training this technology. It’s true that artificial intelligence in HR will take over a lot of repetitive tasks and mundane jobs. However, because of its limited capabilities, AI will still need human guidance and control. As a result, mundane and repetitive tasks will go to the machine, while humans will get new organizational and creative tasks to complete.
• HR management is not a high-priority area when it comes to AI adoption. Like any other technology, AI is associated with some risks and concerns, which we will discuss in the next sections. However, it does not discourage HR organizations and industry representatives from implementing AI at work. The benchmarking session conducted by Gartner in 2023 revealed that 52% of HR representatives are now studying HR AI’s potential to transform work at their organizations. Particularly, they are interested in using generative AI, which is a subtype of AI capable of generating content.

Are you an HR leader interested in implementing artificial intelligence in human resources? From ChatGPT to Bing or Perplexity AI, our team can help you choose the best AI model that will satisfy all your business requests and smoothly integrate it into your IT infrastructure. Tell us more about your business challenges and check out how we helped our client integrate ChatGPT with their big ecommerce system.

2. Evaluate the potential of AI in your business context

The next thing you will have to do is dive deep into the possible applications of AI in human resources and discover the benefits it brings. By doing so, you will figure out if AI can give you what you expect and if your organizational goals align with the listed AI implementations and outcomes. Our article will help you with this task: in the next sections, we will discuss the use cases and benefits of AI.

3. Set success criteria before AI in HR adoption

The adoption of AI is a journey requiring time, AI expertise, and effort from your team. This journey should be planned out meticulously and implemented step-by-step. However, AI implementation is not the final stage of the journey. Before integration, you will have to set the success criteria that will help you evaluate the effectiveness of AI adoption in your organization. These criteria should stem from your AI-focused organizational goals. After some time, you will track the dynamics of these metrics and decide if your AI adoption should continue or not.

Top 5 AI Applications in HR

Let’s review the top 9 applications of artificial intelligence in HR. You can use this list to figure out if your expectations of AI match its potential.

Hiring processes

You can use AI to automate the recruiting procedures. HR artificial intelligence can analyze CVs instead of HR managers based on the criteria you define, like years of experience or certification. By doing so, you will save employee time, allowing them to focus only on the CVs that meet your requirements.

Apart from the early stages of the recruitment process, AI in human resources can also be used at the stage of video meetings or personality assessment tests. For instance, you can ask AI to make a short extract from the video interview or test results and share it with the higher-level management. They won’t have to spend time reviewing the tests or rewatching the recordings. Instead, they will get a short summary and share their feedback on each candidate.

Performance evaluation

Big companies employing a vast number of employees may find this AI application particularly interesting. Usually, HR managers must go through big volumes of data about each employee to evaluate their performance.

Instead of doing this, they might use artificial intelligence in human resources management. HR managers can ask AI to analyze the number and quality of completed tasks, work hour volume, peer feedback, etc. for each employee. The factors considered by AI are defined in advance by the manager. Based on the summary and insights generated by AI, your HR managers will draw conclusions on each candidate and devote their free time to finding ways to improve performance.

Onboarding and offboarding

Onboarding and onboarding processes are associated with a lot of paperwork. An employee should go through multiple procedures, checks, and meetings before they join or leave the team. If a company implements an AI-powered HR solution, they get the chance to streamline these processes.

AI HR solutions can be used to guide a new team member via the onboarding process. Surely, such a solution should be facilitated by human assistance. However, the technical part of onboarding/offboarding can be almost fully delegated to the machine. For example, AI technology can ask an employee to fill in the necessary documents or surveys and check if everything is done as expected. It also can acquaint an employee with the company’s policies, teach them how to use the enterprise software, and even plan out their training sessions.

Sometimes, new employees have questions or face issues, but they are afraid to ask HR managers for help because they do not want to look incompetent or feel embarrassed. Unsolved issues can adversely affect their productivity and their comfort at work. The use of AI in HR allows you to reduce stress during onboarding and ensure a smooth transition for both parties during offboarding.

Employee engagement

For HR managers, it may be physically hard to analyze the overall employee sentiment. This requires analytical skills, a lot of time, and the ability to see the situation from a bird’s eye view. We won’t surprise you if we say that the process of analyzing employee engagement can also be streamlined with the use of AI in HR.

HR managers can set the AI to regularly organize and conduct surveys among the team members. Their answers will be used to create insightful reports and notify the HR managers if some critical issues arise. By using AI, HR managers reduce the possibility of bias in the surveys. They also get the chance to devote their free time to developing a strategy for improving employee sentiment.

Employee development

Your organization can launch personalized training sessions with AI implementation in HR. The technology can regularly conduct automatic performance evaluations for each employee and suggest the best training strategy based on the results. With AI, HR managers will find effective ways to customize and personalize training based on employee concerns and issues. They will also get a better understanding of the gaps and problems requiring their intervention and assistance.

Artificial Intelligence in HR: Main Benefits

Now, let’s review the top 5 benefits you can get after integrating AI with your HR management system.

Great employee experience

Your employees will appreciate the AI human resources initiatives that have the potential to streamline their work, save their time, and increase their satisfaction rate. By investing in AI integration and development, you will demonstrate your readiness to streamline the work process and make your employees happier. But to get this benefit, ensure that your team gets essential training on the use of AI and can refer for help to HR managers anytime.

Increased efficiency and automation

A big part of the HR manager’s workload is devoted to doing routine tasks like filling in forms, sending reminders and newsletters, sending surveys, etc. All this can be delegated to AI technology, which will increase the efficiency and automation of HR processes at work. On top of that, the work of HR AI can be the source of insightful analytics on HR efforts and recruitment results, shedding light on the most effective recruitment strategies.

Saving time

As you see, AI is a true time saver for HR organizations and departments. By using AI-driven software, HR managers automate the responses to simple employee questions while saving time for more complex queries. For example, an employee can ask AI how to request a vacation or sick leave or what conditions should be met to use corporate perks.

Facilitated employee support

As we’ve already said, sometimes employees face issues but have no one to refer to. It may also happen that they are afraid of looking incompetent if they ask for help. Human resources artificial intelligence solves this problem by giving employees the opportunity to utilize technology to get advice, extract information, clarify work-related issues, etc. What’s more, data on employee sentiment collected and analyzed by AI is a powerful tool for improving employee satisfaction if passed to the right hands.

Fewer errors at work

Doing a lot of repetitive tasks daily inevitably leads to human error. For example, the more CVs an HR manager has to review, the higher the possibility that they miss some valuable information that may help them make the right choice of a candidate. Fatigue, which is a frequent outcome of extensive workload, does not relate to HR AI. So, for tasks that are repetitive and require no human creativity, AI can ensure error-free and quick results.

AI Implementation Challenges in HR

Like in any other sphere, AI in HR is prone to challenges and issues. However, these are minor and can be easily eliminated with the help of experienced AI integration experts. Here at Forbytes, we offer a wide range of software development services, helping companies increase security, protect data, and implement smooth AI integration. Contact us if you are looking for assistance in the AI integration process.

The main challenges AI integrators cope with include:

• The change of responsibilities and tasks. While many tasks will be delegated to this technology, employees will be assigned to new goal-critical roles and tasks. This will require your HR team to ensure a smooth reskilling process so that each team member is aware of the new roles and new demands.
• Privacy and security concerns. Although 79% of HR representatives agree that the chatbots will be an important interface for employees to get real-time answers, your staff may be concerned about the privacy of their conversations with AI chatbots. To solve this challenge, integrate your HR management solutions with a trusted AI model tested and customized by a reliable software development partner. Then, communicate the importance of confidentiality to your employees, explaining how, when, and why their data is used.
• Continual improvement. If you decide to start using AI for HR, you should be ready for continual improvement. AI models evolve and are regularly updated and enhanced. Thus, you will also need to conduct AI upgrades from time to time, like it is with any other software type you use. Again, this challenge will be easily solved with the help of a skilled AI development partner.

How Forbytes Сan Help with AI Integration

We are a software development company with more than 12 years of experience, and we are happy to share emerging tech trends and news with our readers on this blog. The number of AI-focused projects we complete is growing, which makes us capable of sharing AI insights with our audience. If you find our article useful and think that we can be a perfect match for your AI development project, let us know.

On our side, we guarantee a prompt response to your note and a deep analysis of your business case. Together, we can plan out and apply human resources artificial intelligence to your business with zero downtime, in accordance with the budget, and with no damage to your employee’s daily work.