8 ways to start using AI in Human Resources (HR) management

With the release of AI-powered platforms like ChatGPT and Google Gemini, you’ve probably had a conversation about artificial intelligence in the not-so-distant past. As this conversation topic dominates both professional workspaces and casual chatter, it’s clear that everyone is questioning AI’s place in society. It doesn’t matter if you work at a B2B or B2C organization, a start-up, or a multinational company: you’ve probably thought about how AI can help your organization optimize its operations.

For Human Resources managers, efficiency can make or break everyday processes. You may be considering the use of AI to automate everyday tasks. This article outlines how artificial intelligence fits into human resource management—and where AI can’t replace the human touch.

What is AI in HR?

AI stands for “Artificial Intelligence.” AI in HR refers to the use of artificial intelligence to optimize support duties for your organization. Depending on your industry, this integration may be more or less straightforward. Openness to AI in HR has varied, with 74% of HR teams in one survey having started to discuss and look for ways to use AI and 24% not even considering artificial intelligence. It’s important to remember that artificial intelligence doesn’t just (or often) describe the stereotypical robot from science fiction. AI also includes many tools professionals already use, such as software, virtual assistants, and recommendation systems.

How can we use AI in HR?

The use of AI in Human Resource management is versatile, including automating tasks like onboarding employees, processing payroll, and administering benefits. According to a recent report from Eightfold AI, most of the 250 Human Resources professionals surveyed already use AI in these ways. They also named employee record management, recruitment and hiring, and performance management as areas to use AI.

Below, we’ll describe 8 ways that AI and human resources can work together to maximize efficiency and ease in the workplace. Let’s start from the top!

Talent acquisition

A frustrating aspect of the job search for both employee and employer is the lag time. The average job hire process in the United States takes 3-6 weeks. However, the BBC reported that 28% of candidates said they’d dropped off from employer communication without notice. AI for human resources can greatly cut down on wasted time by scanning resumes and cover letters for keywords that your company is looking for. If you want to widen your talent pool, you can also use AI to draft and send outreach letters to potential candidates.

Artificial intelligence can help you identify your most effective outreach strategies during and after the hiring process through conversion rates (essentially, how many applications manifest variable interviews). That way, you can streamline the hiring process, making talent acquisition easier and easier with each hire.

Employee onboarding

Once you hire your employee, the onboarding process begins. As a Human Resources professional, you know how many tasks need to be completed to fully onboard an employee into an organization. Artificial intelligence in HR can help you optimize the process by sending employees automated reminders about missing documents and uncompleted tasks. AI can also help walk your employees through how to accurately complete those tasks, such as filling out the onboarding forms, to cut down on back-and-forth.

Benefits administration

Every year, employees must opt in or out of company-provided benefits. Open enrollment for benefits can cause a lot of confusion on the employee end, which in turn increases your already sizable workload.

AI and HR can come together to reverse this trend. Rather than answering individual questions about benefits, AI can help your employees understand the ins and outs of different healthcare policies, commuter benefits, and more. If an employee in your company is having trouble accessing a benefit, AI can help identify the issue, empowering the employee to resolve it independently. When HR support is still needed, artificial intelligence can sort their problem into a category, making it easier for you to address them promptly.

Payroll processing

Using AI for payroll is a no-brainer. Countless software applications and platforms such as ADP and Rippling allow HR professionals to automate payroll processing. In these platforms, employees can submit their financial documents and payment information, adjusting their tax withholding as needed.

Employees can also monitor their pay using date and “type” filters, analyzing graphs to understand how much of their paycheck is take-home or dedicated to healthcare or a retirement account. Using AI is essential for maintaining transparency around payment and ensuring 100% accuracy.

Employee record management

The days of the good old-fashioned filing cabinet are gone. Similarly to payroll processing, AI is critical to keeping employee records organized and easy to access. Here, be careful to use the right software. Since you’re dealing with sensitive information, you’d need to ensure that any software you use is HIPAA-compliant or conforms to local laws around employee confidentiality.

Performance management

AI can also be used to generate reports on performance management. Traditionally, this monitoring has taken the form of recording software for customer service representatives or report generation on employees’ tangible outcomes. Somewhat controversially, some remote companies have used keystroke logging to determine employee productivity.

AI in HR can be used to collect data on the number of email exchanges between employees or their after-hours screen time. In this way, AI can enhance performance management by revealing where inefficiencies may still exist to reduce employee burnout.

Building employees’ skill sets

AI-powered learning has gotten a lot of buzz lately, but what does it mean in the workplace? Essentially, artificial intelligence can be used to identify skill gaps. Then, depending on the skill, artificial intelligence can re-train employees using specific software.

Take corporate language training, for example—a popular benefit that employees want to receive from their employers. Preply Business’s language assessment test for employees can help them know their language level in 20 minutes. As they acquire language skills with the help of online classes and the Preply app, they can track their progress through regular level testing.

Enhancing company culture

Finally, HR can use artificial intelligence to improve company culture. By gathering information about how different teams interact with each other, artificial intelligence can identify breaks in the workflow. Targeted solutions can then help minimize inefficiency and frustration, promoting positive interactions between coworkers.

Artificial intelligence can also facilitate feedback collection and increase employee engagement. Using AI, you can regularly connect with your employees to hear their thoughts about what’s working well in your organization and what needs to be improved. Based on trends, HR can use AI to offer personalized solutions.

Is AI going to replace HR?

The short answer is no. While artificial intelligence is an extremely useful tool in Human Resource management, AI can’t be used in all aspects of the job. For example, AI cannot replace:

Human judgment and emotional intelligence

As an HR professional, much of what you do revolves around using your best judgment. You need emotional intelligence to mediate collegial conflicts and support employees in dealing with personal matters.

Artificial intelligence is highly complex, but there is still much we don’t know about its capacity for feeling. That said, AI in Human Resources most certainly cannot be emotionally sensitive or make the same judgment calls as a person.

Sensitive information handling

Certain AI-powered platforms are equipped to keep health conditions or personal affairs private through technology such as encryption, but many are not. Moreover, much of the software that relies on artificial intelligence collects data. This can be extremely helpful when it comes to observing trends.

However, identifying anomalies can also lay certain information bare. That information may not be negative, such as a pregnancy or recovery from an illness. At the same time, it may not be something an employee wants to reveal to their colleagues yet. As a person, you have more control over keeping information confidential as long as it needs to be.

Connection forming and networking

We’ve all experienced the robocall, and nobody appreciates it. Artificial intelligence can help send prompt reminders or short notes, but it can’t replace human dialogue. For example, you could ask everyone to film a short video introduction to onboard new team members, but a brief meeting may feel more welcoming.

Alternatively, live interviewing candidates via phone call or video chat can make a big difference in their impression of a company. Modeling these skills to your employees will also help them naturally grow their networks.

Interpersonal skills acquisition

On the same note, employees can’t acquire all skills through artificial intelligence. AI can be extremely useful in teaching employees how to complete certain tasks. When it comes to developing meaningful interpersonal skills, such as learning a new language, AI is no match for colleague-to-colleague interaction or the support of a live tutor.

Augmented Decision-Making

It should be noted that there is a halfway point between artificial intelligence and human-powered labor: Augmented Decision-Making. Sometimes referred to as ADM, Augmented Decision-Making is a category of artificial intelligence that is directed by human action rather than full automation. Using technology like Siri, Cortana, and Alexa are all examples of augmented decision-making in practice—the software can retrieve information for you, but it needs to receive specific prompts to do so.

HR professionals may prefer to use augmented decision-making for a variety of reasons. The technology may not be developed enough yet for AI to complete tasks on its own. Alternatively, you may find that the job at hand requires a combination of human judgment, emotional intelligence, and personal experience. In this case, you may be better served by augmented decision-making.

Conclusion

Artificial intelligence in Human Resource management should be adopted to improve efficiency. HR and AI can come together to optimize a wide variety of tasks, such as talent acquisition, benefits administration, and even enhancing employee experience.

At the same time, HR professionals need to be mindful that certain tasks require personal skills. Handling sensitive information, forming bonds with colleagues, and developing interpersonal skills are all examples of cases where human judgment and emotional intelligence are critical. At the end of the day, it’s all about striking a balance: how you can optimize operations to keep human resources the personalized support your employees need.