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AI in HR: How Artificial Intelligence Is Changing Human Resources

Written by Salary.com Staff

January 7, 2024

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Artificial Intelligence (AI) is revolutionizing human resources (HR). AI technologies are changing how HR teams operate. These include handling automated resume screening, personalized job suggestions, predictive analytics, and customized learning platforms. AI tools are currently enhancing and optimizing HR processes. The increased use of data and algorithms is enabling a more strategic, forward-looking approach to managing people and workforces.

HR professionals must not view AI as a threat but as an opportunity. When combined with human skills and judgment, AI can augment and amplify the impact of HR. The key is using AI to manage routine tasks. This approach frees up humans to focus on more complex, nuanced work. That being said, AI will not replace the human touch in HR but will enhance it.

The future of work is here, and AI is at the forefront of the changes ahead. HR teams that embrace AI will gain a competitive edge in attracting and keeping top talent. AI is not just a buzzword but a revolution that is actively shaping the employee experience and HR function. The question is not whether AI will impact HR, but how to best optimize its use.

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AI in HR: Transforming Recruiting and Hiring

AI is changing how companies find and hire new talent. Intelligent algorithms now analyze huge numbers of resumes and applications to find top candidates in a fraction of the time it takes humans. They look for key skills, experience, and education that match the job needs. By filtering out unqualified applicants, AI in HR enables recruiters to focus their efforts on the most promising candidates.

Some companies are even using AI for initial video interviews. The systems assess applicants' word choices, tone of voice, and facial expressions to assess their aptness for a role. While not flawless, AI in HR can help take the bias out of recruiting. AI in HR can give chances to candidates that companies may otherwise overlook. AI in HR brings more efficiency and fairness to hiring. The future of recruiting is automated, data-driven, and AI-powered, which benefits both the best candidates and companies.

AI in HR: Onboarding, Training, and Development

AI is changing how companies onboard, train, and develop employees. AI in HR is enhancing learning and development in many ways. For instance, AI-powered learning management systems track employees' skills and learning habits. In this way, they can provide personalized training suggestions.

They analyze large amounts of data to find skill gaps and learning needs across the company. AI in HR powers adaptive learning platforms that customize lesson plans for each learner based on their strengths and weaknesses. AI in HR also strengthens interactive training simulations that provide real-time feedback. Some companies use AI for coaching, giving employees access to guidance and support. These systems get smarter over time as they gather more data about learners' interactions, needs, and progress.

AI in HR focuses on the human side of their work, using data and technology to handle clerical tasks. The future of work is humans and AI working together. AI will continue to transform how companies develop talent. Blending AI and human expertise will shape the future of corporate learning.

AI in HR: Performance Management and Retention

AI is shifting how HR teams oversee employee performance reviews and retention. AI-powered systems analyze employee data to identify top performers and those at risk of leaving. These insights allow HR to develop targeted retention strategies and coaching programs.

Employee engagement and productivity are crucial for any company’s success. AI in HR helps find what motivates and engages employees to improve satisfaction and output. AI in HR also makes the performance review process more data-driven and less subjective. With AI, managers can focus on employee strengths and growth prospects to discuss during reviews.

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AI in HR: Benefits Administration

AI in HR has the potential to significantly improve benefits administration. AI-powered software can help simplify and automate many routine tasks. This includes processing claims, verifying eligibility, and handling enrollment.

AI in HR: Diversity and Inclusion

Companies use AI and machine learning to help improve diversity and inclusion in the hiring process. AI in HR has algorithms and systems that aim to reduce unconscious bias in job listings and the screening of applications. They can analyze the language in job ads and flag phrases that may discourage minority groups from applying.

Companies also use AI to analyze the diversity of a company’s candidate pool and hiring outcomes. By auditing demographic data, algorithms detect areas where certain minority groups are. With this insight, recruiters and hiring managers can adjust their strategies to attract a wider range of qualified candidates.

Some companies experiment with “blind hiring,” where AI masks personal details like name, age, and gender during initial screening. The goal is to overcome implicit biases and assess candidates based solely on their qualifications.

AI will not solve the complex challenges of diversity and inclusion overnight. It can help introduce more fairness, transparency, and accountability into hiring. When used with human judgment, AI has the potential to make a meaningful difference in building a more equitable workplace. 

Best Practices for Using AI in HR

Using AI in HR allows companies to automate repetitive tasks and gain valuable insights. Some best practices for using AI in HR include:

  • Conducting an audit of current HR processes to know where AI can have the biggest impact. Focusing AI on tasks like screening resumes, analyzing employee surveys, and predicting retention can free up HR staff for more strategic work.
  • Providing training for HR teams on how to work with AI systems and interpret their outputs. HR teams need to understand AI to effectively oversee and manage these technologies.
  • Starting with a pilot program to assess how AI works for a specific use case before deploying it company-wide. Pilot programs minimize risk and allow for course correction.
  • Reviewing AI systems regularly to ensure they do not reflect or amplify biases. AI depends on the data used to train it, so companies must audit AI systems for unfairness or inaccuracy.
  • Maintaining human oversight and involvement in all AI-supported HR processes. While AI excels at automation, human judgment is still vital for complex or sensitive HR decisions. AI augments human capabilities, not replaces them.

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AI has transformed HR in profound ways. While still in its infancy, AI promises to reshape how HR teams work and the types of jobs available in the industry. With AI taking over routine tasks, HR teams can focus on more strategic work that machines cannot easily replicate. At the same time, new jobs are emerging in HR data science and AI realization. Overall, AI will augment human capabilities, not replace them.

The future of HR looks both automated and human. AI may change how the work gets done, but people will always remain at the heart of human resources. The next decade will see AI become an indispensable tool for HR innovation. It will be a catalyst for developing a more human-centered approach. The rise of AI in HR marks the dawn of a new era full of potential. The possibilities are endless, and HR has only just begun to tap into the power of AI.

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