<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=2059727120931052&amp;ev=PageView&amp;noscript=1">
HR Resources AI & Automation

The Top 6 Benefits of Artificial Intelligence (AI) in HR

December 21, 2023
8 min read
Full Platform Graphic (5)

Drive HR Success With Automation

Learn More

Where does your human resources team stand when it comes to using artificial intelligence (AI)? If AI isn’t on your radar, it should be — 76% of HR leaders say their organization needs to start using AI solutions in the next two years or risk being left behind. It seems most are getting the message since 92% say they plan to use AI much more in at least one area of HR by early 2025.

Even in these early stages, the importance of artificial intelligence in HR is clear. It can help us work as efficiently as possible, transform our decision-making processes, and make the most of our valuable time at work. 

Keep reading to dig into six of the most important benefits of AI in HR today.

🚀 Unlock the power of AI in HR 🤖 Explore how AI revolutionizes recruitment, enhances performance reviews, and fosters a positive workplace culture. Dive into the future of HR:

How Does AI Help HR?

HR departments are now seen as a strategic part of the business, which comes with an increase in responsibilities and expectations. However, that doesn’t often mean an increase in headcount. Teams still need to stay on top of regular HR functions, including many time-consuming manual processes and compliance-related tasks. 

Some of these are necessary, while some are tedious because they rely on outdated methods. Either way, your team spends countless valuable hours finishing those tasks, leaving little time for other important work, like analyzing employee data and refining talent management strategies. That’s where AI comes in. 

Contrary to popular belief, AI is unlikely to replace many jobs — especially in human resource management. More than half of HR pros actually believe generative AI will increase demand for their skills. AI-powered tools help take the pressure off HR teams, enabling you to do more with less. With AI, you can speed up processes, automate manual tasks, and make decisions with confidence, knowing you’re seeing the full picture. 

HR Leaders On Using Generative AI

  • One in four say their employees are already using generative AI.
  • 76% say entry-level individual contributors will be most impacted by AI.
  • 84% expect AI to make their teams more productive. 

6 Key Benefits of AI in HR

There are already many benefits of using AI in HR, and you can expect that this list will continue to grow as AI technology advances.

1. Streamlined Recruiting and Screening Processes

AI for recruiting and screening is a valuable tool for today’s talent acquisition teams. AI recruiting tools include:

  • Content generation tools that help you write job descriptions, emails, and offer letters for any role in record time. 
  • Candidate sourcing capabilities to help you build a qualified talent pool fast. 
  • A branded career site chatbot to help potential candidates find and apply for jobs that fit their skills and experience. 
  • Best match tools surface top candidates so you can prioritize outreach efforts. 

Although it’s essential to follow AI in HR best practices and refrain from using AI to choose who you hire, it can be a valuable tool in speeding up your search. AI accelerates the recruitment process, working at lightning speed to source qualified talent from databases of millions, even billions of candidates. 

For some positions, AI can even perform quick candidate screenings via text message or chatbot. Your recruiters will save tons of time by eliminating candidates who aren’t qualified for the role. An AI assistant can even help applicants find other open roles that may be a better fit, capturing their interest to grow your talent pool. 

2. Personalized Onboarding Experiences

The research is clear that onboarding is a formative part of the employee experience. It can determine whether a new hire sticks around or looks for a new role ASAP. AI-driven onboarding processes make an excellent impression on your new hires — and make it run smoother than ever. That’s no doubt why over ⅔ of organizations are already using AI for onboarding. 

AI enables your team to execute personalized employee onboarding experiences for every new hire. Here’s how:

  • Automatically create and manage digital documents
  • Instant messaging automation for employee communications during onboarding
  • Chatbots for efficient feedback collection and quick questions
  • Analytics to assess the progress and performance of new employees
  • Real-time compliance monitoring to ensure mandatory trainings are completed and documents submitted
  • Creating reports highlighting trends and patterns in your onboarding process
🔄 Task automation, workload reduction, and strategic focus — AI is reshaping HR processes! Say goodbye to manual tasks and hello to efficiency with AI:

3. Enhanced Performance Reviews and Feedback

Giving effective performance reviews and constructive employee feedback is a top priority for businesses today. AI has emerged as a force that’s reshaping the traditional approach to performance management and bringing HR into the age of data-informed decision-making. It’s helping companies give more effective feedback, reduce bias in reviews, and encourage continuous growth among employees.  

AI provides managers with the information they need to give more nuanced, objective, and useful reviews and feedback. By analyzing performance metrics, including project outcomes, collaboration patterns, and individual contributions, AI gives you a more complete, detailed understanding of what employees have achieved. With this knowledge, your feedback will be more accurate and insightful and, therefore, far more beneficial for your people.

One of the challenges in traditional performance reviews is the potential for bias. AI acts as a neutral evaluator, focusing on objective data rather than subjective opinions to remove unconscious biases and ensure fair assessments. 

AI also turns performance reviews into dynamic, ongoing processes by providing actionable insights for continuous improvement. AI analyzes trends and identifies areas where development is needed. This insight empowers employees and managers alike to proactively address challenges, fostering a culture of learning and professional growth.

By infusing objectivity, accuracy, and a commitment to continuous improvement, AI paves the way for a growth-minded, employee-first performance management landscape.

4. Automated Tasks and Reduced Workloads

HR handles lots of manual work that’s not optional — it just has to get done. AI and HR automation take those tasks off your team’s plate, acting as helpful digital assistants to take care of the routine HR work. That frees up their time to focus on work that demands strategic thinking and a human touch. 85% of employers using AI say it’s saved them time or improved their efficiency. 

It's not just about reducing work — it's about making HR more efficient and creating a workplace where people feel heard and appreciated. As HR pivots from manual to strategic, the positive effects ripple through the whole organization. The result is ​​heightened efficiency, innovative solutions, and a workplace culture that thrives on human connection and forward-thinking initiatives.

5. Predictive Analytics for Talent Management

AI-based HR software can take your talent management strategy to new heights by peering into the future with predictive analytics. AI acts as HR's crystal ball, spotting high-potential employees, anticipating turnover risks, and optimizing talent management strategies for a future-ready workforce. 

AI, armed with advanced algorithms, can sift through vast datasets to identify employees with exceptional potential. By analyzing performance metrics, skill development, and historical data, AI reveals the most promising individuals in your workforce. When you’re certain of your top performers, your organization can make intelligent investments in your most promising talent, closing skills gaps and fostering a culture of continuous growth and development. 

AI also gives your HR team the game-changing ability to predict employee turnover. AI analyzes factors including employee engagement, job satisfaction, and historical patterns to identify individuals who might be at risk of quitting. With this insight, you can deploy targeted retention strategies to keep top talent on board.

AI doesn't just predict what’s likely to happen; it helps you optimize your approach. AI analyzes trends, preferences, and organizational goals to help you refine talent management strategies. The result is a fine-tuned approach that aligns with the organization's current needs and future goals.

Predictive analytics with AI propels talent management from reactive to proactive. It enables your team to shape a workforce that’s well-prepared for the challenges of today and poised for success even with future uncertainties. With predictive analytics, HR can act as a strategic navigator, steering the organization towards a future where talent isn't just managed but truly optimized.

6. Better Employee Engagement

Improving employee engagement should be a constant priority, considering the fact that engagement correlates with:

  • Up to 43% lower turnover
  • 64% decrease in safety incidents
  • 18% higher productivity
  • 23% higher profitability

Those are just a few of the benefits of high employee satisfaction, and AI for employee engagement can help you achieve similar results. AI analyzes patterns in work habits, communication styles, and collaboration efforts so you can learn what truly motivates and engages employees. With this deeper understanding, you can create tailored strategies that resonate with your workforce. 

AI also helps you collect employee feedback and learn from it, dissecting sentiments, identifying trends, and interpreting nuances that humans might miss. Whether it's gauging satisfaction levels, uncovering pain points, or understanding aspirations, AI transforms raw feedback into actionable insights so your HR team can develop more targeted and effective engagement initiatives. AI can ensure that engagement efforts resonate with the needs of your workforce, fostering a workplace culture where each employee feels valued and connected. 

By harnessing the power of AI, your company can move beyond a one-size-fits-all approach to engagement. Foster a positive workplace culture that attracts top talent and retains and nurtures the human capital you need for long-term success.

As AI continues to advance, don’t let your HR team get left behind. Take advantage of AI to keep up with the demands of the modern workforce. You’ll reap the benefits, from more efficient HR processes and improved candidate and employee experiences to deeper employee insights and data-informed strategic planning. 

AI is here to stay, and if you can use it effectively, you’ll come out on top in the fight to find, hire, engage, develop, and retain your valuable employees.

Want to learn more? Keep reading about AI HR technology and its impact on HR teams.


Maximize Employee Talent

Recruit, recognize, and retain top talent with ClearCompany’s complete Talent Management solution. 

Schedule Your Demo