Artificial intelligence (AI) can help usher in a new era of human resource management, where data analytics, machine learning and automation can work together to save people time and support higher-quality outcomes. As AI technology moves beyond automation to augmentation, companies may be looking at how AI tools can make the work of human resources (HR) better for employees and job seekers. It’s not just about saving time; it’s also about providing information, insights and recommendations in near real-time. And that’s just the start of AI in human resources.
These conversations are happening as the workforce is undergoing a major change. According to a global study from the IBM Institute for Business Value (IBV), surveyed executives estimate that 40% of their workforce will need to reskill as a result of implementing AI and automation over the next three years. This shift is viewed as an expansion of job possibilities. In fact, 87% of respondents believe employee roles are more likely to be augmented than replaced by generative AI, with the effects varying depending on job function.
This transition will have a direct impact on HR departments as companies look to fill roles that perform augmented tasks and workers seek new jobs as their own functions change. AI adoption into HR technology has the potential to assist HR teams in this new landscape. Emerging AI tools are rapidly advancing past efficiency and becoming tools for innovation—something that frees up team members to think about HR more strategically while still providing a human touch.
How HR departments are using AI
AI use in HR refers to the deployment of machine learning (ML), natural language processing (NLP) and other AI technologies to automate human resources tasks and support decision-making. It enables a data-based approach to talent acquisition, employee advancement and retention that seeks to mitigate bias and enhance the job seekers’ and employees’ experiences.
AI tools have the capabilities to assist HR leaders in a wide range of areas, including the following:
– Employee records management
– Recruitment and hiring processes
– Payroll processing
– Performance management and assessments
– Benefits administration
– Onboarding new employees
– HR support or service desks
Companies today have the potential to use artificial intelligence in HR functions and processes to inform decision-making, make interacting with HR easier for employees and free up time to make better hiring decisions and invest in employee satisfaction and retention.
These are some possible use cases:
Professional learning and development: Where do workers see themselves in five years? AI has the potential to assist in recommending personalized training modules for career mobility. By analyzing data on each employee, such as their skills and preferences, AI could tailor their training according to personal goals. AI could also have the potential to help HR managers identify hidden talent or identify employees ready for promotion.
Candidate sourcing and hiring: A common complaint about the hiring process is that it’s slow. AI can help pick up the pace by helping managers nurture each potential hire automatically, and it allows them to receive notifications when a candidate applies for an open position.
Procurement of short-term workers: AI in HR can help organizations fill open positions quickly, including short-term and temp positions. By using natural language processing (NLP) capabilities, AI tools for HR can automate manual procurement tasks, saving HR teams valuable time for planning strategic initiatives and meeting client needs. For example, AI tools can help managers compile requirements from stakeholders and then work within a vendor management system (VMS) system to open a request with suppliers to find potential contractors and schedule interviews with hiring managers.
Onboarding: AI can make the process of collecting information smoother and more personalized. AI-powered chatbots can guide new employees through the onboarding process, answer questions, provide information and send reminders about key documents—reducing time-consuming tasks and enhancing the new hire experience.
Automating HR service: Responding to employee needs is key to improving engagement and productivity, but navigating through complex corporate policies and HR and IT support processes can leave employees struggling to find answers—causing frustration and wasting time. AI-powered HR chatbots can help empower employees with fast answers and self-service support.
October 9, 2023By IBM Consulting