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Talent Management Talent Analytics AI & Automation

The Rise of Artificial Intelligence in HR

July 5, 2023
6 min read
Benefits of AI in human resources

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Artificial intelligence (AI) used to sound like futuristic, far-off, and potentially job-stealing technology, but the evolution of HR technology has been fast and furious. Like most talent acquisition and human resources teams, you’re probably already using it — and realizing there’s little danger you’ll be replaced by a robot anytime soon.

While it won’t take over your job, artificial intelligence in human resources can certainly help you get work done. 75% of HR leaders say they’ll use AI in the next year, and 92% of HR leaders say they plan to increase their use of AI in at least one area of HR, with the top five being:

  • Performance management (43%)
  • Payroll processing and benefits administration (42%)
  • Recruitment and hiring (41%)
  • Onboarding new employees (40%)
  • Employee records management (39%)

Is your team investing in AI and working on a strategy of its own to harness the power of this groundbreaking technology? It’s important to be aware of what AI does well and where the technology is still lacking.

Keep reading for more about what we know about artificial intelligence in HR: the benefits, drawbacks, and some tips for using it.

75% of HR leaders will use #ArtificialIntelligence more in the next year. Find out the top 5 areas they’re putting #AI to work:

What is AI in HR?

Artificially intelligent systems simulate human intelligence by taking in information, analyzing it, and using what they learned to solve problems or achieve goals. AI uses natural language processing and machine learning to become more intelligent. In terms of HR software, the more you use it and the more data you provide, the better AI systems become at solving problems and drawing conclusions.

While that’s certainly true for humans, AI benefits from unlimited memory, perfect recall, and lightning-fast processing. HR leaders expect AI will help increase productivity and improve the employee experience. AI in HR benefits teams of all sizes, increasing efficiency and deepening their understanding of their workforce. Make data-informed decisions and free up time for your HR team to focus on innovative, strategic tasks that require real human intelligence.

AI in Performance Management

Performance management is one HR function that’s been in the spotlight lately. Post-pandemic, it’s vital to respond to employee expectations and the need for fair, thorough, useful reviews. New performance management statistics show that employees respond best to frequent feedback. They also want to work at a company that will help grow their careers.

Did you know you can use #ArtificialIntelligence in HR to identify top employees and build custom career paths? Find out more ways #AI is changing HR:

That’s why so many companies are putting AI to work to refine their strategies and making it their top area of focus this year. Using artificial intelligence helps HR teams build customized training programs optimized for different learning styles and create tailored career paths. It enables you to identify top performers based on data points, avoiding the human bias that can impact which employees are recognized and rewarded. AI can also use performance data to predict future employee productivity and set goals based on these insights.

With AI, your HR team can better identify candidates for promotion, address performance issues early, and spot patterns in productivity to create the most effective strategies possible.

AI in Payroll and Benefits

“AI will increase the pace we can work at. It can't replace innovation, so we will have more opportunity to be creative.”

- Cian Zoller, human resources director for ServiceNow APAC

While payroll and benefits are largely administrative tasks, there are still some surprising ways AI can help you improve your strategy:

  • AI can help your team understand how compliance requirement changes impact your business.
  • Payroll and benefits expenses are subject to fluctuations based on a multitude of factors, including employees’ work locations, labor costs, turnover, business taxes, and more.
  • AI can help your team predict expenses and prepare for different scenarios. AI chatbots answer simple questions from employees to prevent interruptions in your team’s workday.
  • AI can assist with auditing and reconciliation, uncovering deviations much faster than humans and with unparalleled accuracy.

AI in Onboarding

Employee onboarding is one of the most important parts of talent management that all too often gets overlooked. 88% of employees say their company isn’t good at it — which should alarm you since bad onboarding experiences can lead to turnover, disengagement, and poor performance.

The onboarding process demands planning, standardization, and communication, and employee onboarding software and AI can help with all of that.

  • Send onboarding documents to new hires automatically, enable e-signatures, and track their completion with AI so HR can spend less time keeping onboarding on schedule.
  • Empower employees to take charge of their own onboarding tasks and get them done fast and error-free with digital assistants and employee portals.
  • Digital assistants can also be used to suggest training and company culture resources to new hires based on their onboarding progress, which they can access in the portal.

AI in Recruitment and Hiring

Hiring today is anything but ordinary and demands a modern approach to win top talent. That’s undoubtedly why 73% of HR leaders say they’re already using AI in their recruitment and hiring processes and why it made this list.

These are just some of the ways artificial intelligence helps talent acquisition teams hire the best candidates for every role:

  • Look for an applicant tracking system that uses AI to assist with job descriptions so your team can get new roles posted faster than ever and ensure consistency across job posts.
  • AI technology quickly matches employees or candidates with the skills or experience recruiters are looking for to speed up recruitment processes.
  • AI prepares hiring managers and interview teams for interviews by compiling candidate information and sending interview reminders. It can also help produce objective interview questions based on data from other employees in the role. Make better hiring decisions using AI to compare candidates to past and current top performers in similar roles. AI can use compensation data to help your talent acquisition team bring candidates fair and competitive job offers.

Avoiding bias in AI

Although it’s often used to eliminate bias, there’s evidence that AI can develop its own biases. But humans created AI and are the source of its “intelligence,” which means we’re also the source of its biases. That’s why starting with your policies is essential to eliminate bias and promote diversity, equity, inclusion, and belonging (DEIB). A solid DEIB strategy your company holds itself accountable for following helps keep bias out of your AI systems.

AI in Employee Records Management

Artificial intelligence in HR is most common in employee records management; 78% of HR teams already use it. It makes sense — handling large amounts of data is one thing we’ll never be able to do better than robots. AI can store large amounts of data about every employee and candidate that interacts with your company, maintaining detailed profiles where HR professionals can access data from resumes and certifications to employees’ past performance reviews and goals.

It’s not uncommon for people to make mistakes when performing repetitive administrative tasks, but AI eliminates those mistakes. It can automatically complete forms, catch missed and inconsistent data fields, and ensure employees don’t skip over any documents.

Don't miss out on the opportunity to shape the future of your HR department. Unlock a new level of efficiency, precision, and success in your HR processes and transform talent management with AI.

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See how AI is changing HR in action — sign up for a demo of ClearCompany today and ask about our AI-Assisted Job Descriptions.

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