Since its arrival, AI has taken the world by storm. It’s growing fast, and many companies are using it to enhance their growth. From sales to management, organizations are developing AI-based solutions for every problem.
We see artificial intelligence everywhere in a company, but what about human resources? Can the HR department use this technology too?
Many people have this question, and in this article, we’ll find an answer to the same. In the following points, we’ll take a look at all prominent AI applications HR-focused so you can understand how much impact this technology can have on this sector.
Artificial Intelligence in HR Industry
1. Automating Repetitive Tasks
Many business activities consist of repetitive tasks, and the HR department is no exception. By using AI in HR applications, you can automate most of these repetitive tasks, allowing your organization to save time and resources. AI is better than other machines because it is capable of making intelligent decisions, which they can’t.
For example, you can use AI to automate the management of employee benefits. Or, you can use it to handle the general queries of your team. Another excellent example of automation with AI is during the onboarding of a new employee. HR teams don’t have to worry about provisioning a device, allocating the space, and other relevant tasks when an AI solution can work it out.
AI applications HR-based have a lot of scope and potential. An organization can use its saved time and resources to focus on other more critical areas of their enterprise and boost their efficiency and productivity.
After all, the performance of the business is one of the chief priorities of the HR teams. And AI can help them considerably in this regard.
2. Better Employee Experience
Employee experience is necessary for their engagement. An organization where the employees aren’t engaged is open to many costly risks. For example, it costs a company around $4,000 (in the US) to recruit new talent and an additional $1,000 for onboarding. Companies with high employee engagement have a 21% higher profitability. That’s a considerable difference. Due to these reasons and many others, organizations try multiple methods to enhance their employees’ experience.
AI is helping them in this regard, as well. With AI, companies can simplify the HR department for their employees and enable them to get the necessary information with the least hassle. Multiple companies are aiming to implement voice assistants to help their employees with their business queries. Amazon Alexa and Apple’s Siri are great examples of voice assistants who assist us in our daily lives. Companies are trying to emulate a similar experience within the workplace.
Another area where AI in HR can help businesses is learning and development. Organizations can automate the training of staff through AI. With the help of artificial intelligence, they can design accurate learning paths for their team. AI can also help them in managing the training of their staff. There are many other ways how AI applications HR-based can enhance employee experience within an organization.
3. Reducing Bias
You can’t remove bias from humans. It’s nearly impossible. That’s why many recruiters are now shifting towards AI to recruit individuals for their companies. AI doesn’t have a bias. It works on logic and reasoning, and this quality makes it perfect for recruitment.
There are many kinds of bias. For example, the recruiters could have a language bias where they prefer those candidates who speak a different dialect. The bias could be subconscious, but still, it is a bias, and it harms the recruitment process. There are many kinds of prejudices, such as racial bias or gender bias. And they all are detrimental to a company’s growth because they have to hire people according to merit.
AI systems can solve this issue. You can create algorithms that identify and get rid of such biases within employers. Recruiters can use this algorithm to check rejected candidates as well, who might have lost the chance due to bias. With the help of such an algorithm, the organization would be able to hire a more diverse group of candidates. AI enables HR managers to engage based on data and not based on emotions.
4. AI in Decision Making
Like all the major departments of a business, the HR department has to make crucial decisions as well. And decisions based on data yield the best results. This is another area where AI can help organizations. HR agility depends substantially on fast and sound decision making.
Modern technologies provide HR managers with real-time data so they can make better decisions. However, processing that much data is tricky and conventional methods are quite slow in comparison to AI. Moreover, data collection, analysis, and drawing insights from the same is a time-consuming process. This leads to delay in decisions, which can offset the productivity of the entire organization.
Artificial intelligence can solve this problem quickly. By using AI algorithms and NLG software, you can convert data into text and draw insights faster than conventional methods. There are many visualization software available that rely on AI to give quick and accurate results. Faster decision making will surely help companies in enhancing their efficiency.
Know more: Artificial Intelligence Applications
5. Giving Employee Benefits
AI is excellent for management. So, we can use it to manage employee benefits and implement them better. Many companies are trying to use AI for better administration of employee benefits, and it is one of the most popular AI applications HR-based.
A significant challenge of employee benefits is communication. In many cases, the employees don’t know much about their interests, and in some other instances, they have doubts which they can’t get answers for. Companies are using AI to combat this issue. Chatbots are a great way to facilitate communication, and you can feed chatbots with the most frequently asked questions and their answers. So, if an employee would have any doubt or confusion regarding they can use the chatbot and get quick answers.
Moreover, these chatbots are open for feedback, so if an employee faces any difficulty in using a chatbot, he or she can mention that issue in the feedback and get that issue resolved. Companies can also use AI in HR to analyze employee benefits and improve them accordingly.
6. Smart Analysis
AI has been a popular tool to find the right customers. Through a combination of data analytics and machine learning, companies have succeeded in targeting precise segments of customers and increasing the accuracy of their promotions. Social media platforms also take advantage of AI for this purpose.
AI succeeds in targeting the right customers by segmenting them according to their traits and past behaviors. Companies can use this ability of artificial intelligence to find new talent.
Recruitment is a significant aspect of the business. According to a study, high performing talented individuals are 400% more productive than their average peers. This is a staggering difference. Also, this difference increases further as the role becomes more complex such as software development or project management. In high-value roles, this difference doubles to 800%.
That’s why hiring talented individuals is essential for any corporation. AI can help in this process by analyzing resumes and CVs to figure out which candidates are suitable for the employer. Like we have mentioned earlier, how AI can assist in recruitment, this implementation takes that one step further.
Companies have tons of data on their employees. AI can help them in analyzing the same and help them understand what problems are deterring employees from staying 100% productive.
Learn more: Expert System in Artificial Intelligence
7. Is an Employee Leaving? AI can tell
Losing an employee is difficult for a company. AI can help companies in preparing for departures of employees by providing them insights into whether an employee is leaving or not. Veriato is a company that uses AI to help companies find employees that are planning to go.
It tracks the activity of those employees’ computers (internet searches, emails, etc.) for a month and saves the same. Then, it uses AI to analyze this data and spot outliers. If an employee behaves abnormally (different vocabulary, change of tone, etc.), it highlights the same and alerts the manager.
Veriato’s AI provides multiple advantages to employers. It can work on both in-office as well as remote workers, making it suitable for all organizations. This service is especially beneficial to corporations working on high-end products and designs. Losing an employee in such cases could lead to a substantial loss of intellectual property or ideas.
Its AI also provides managers with productivity reports, recordings rich with context, and user behavior analytics. AI is also helpful in launching investigations in case something terrible happens.
As you can see, AI in HR is quite prominent. It can solve a plethora of problems, and its scope is very bright. Many startups and companies are developing AI-based solutions for HR problems.
If you’re interested to learn more about machine learning, check out IIIT-B & upGrad’s PG Diploma in Machine Learning & AI which is designed for working professionals and offers 450+ hours of rigorous training, 30+ case studies & assignments, IIIT-B Alumni status, 5+ practical hands-on capstone projects & job assistance with top firms.