AI in HR: AI Tools for Human Resources Professionals

AI tools for HR are becoming more common and a great way to help deal with the challenges that HR teams face today – namely employee retention and recruitment and how employee changes affect the company’s revenue and future.

According to the Society for Human Resource Management (SHRM) data, approximately 25% of organizations already use automation and AI in HR-related tasks. This number is evidence of a growing trend in HR—leveraging AI technology.

For businesses that already use AI for HR, it shapes how their entire teams operate. Now, more HR teams are eager to explore the possibilities of artificial intelligence than ever.

To facilitate this exploration, this blog post will discuss use cases, specific benefits, risks, and helpful tools for AI in HR.

AI in HR is On the Rise

Artificial intelligence has a ripple effect on many business functions, such as FP&A, Sales, Accounting, and more, with HR being one of them.

Here are four reasons why AI is proving to be so vital to HR leaders:

1) Driving Efficiency and Accuracy

    AI technology has become an essential tool for HR professionals by automating several routine tasks. Its uses extend to practices like payroll management and compliance tracking. AI enhances accuracy, prevents errors, and helps HR teams focus on more strategic activities.

    2) Improving Talent Management

      The benefits of AI tools in HR are perhaps clearest in talent acquisition and management.

      AI can analyze large datasets far faster than humans can. This benefits both the speed of the hiring process and the quality of hires.

      From screening resumes to assessing candidates and their qualifications, artificial intelligence can streamline the manual processes that often come with talent management.

      3) Better Employee Experiences

        With generative AI tools, your team can personalize employee experiences to a greater degree. For example, HR might use it to offer suggestions for professional development, internal mobility, or strategies to foster better employee engagement.

        Personalization helps retain top talent and enhances overall employee satisfaction.

        4) Supporting Diversity and Inclusion

          AI can play a significant role in promoting diversity and inclusion within the workplace too. Some organizations use it for eliminating biases in the recruitment process.

          AI-driven tools can analyze job descriptions to ensure they are free from biased language. They can also evaluate candidates solely on qualifications and experience, rather than human bias. This helps create a more diversified talent pool and equity in the hiring process.

          AI can also monitor certain diversity metrics. Then, it can highlight areas where an organization can improve its inclusivity efforts to foster a more equitable workplace.

          Top AI HR Tools to Watch Out For

          AI has a far-reaching impact on HR, and there are many applications for it.

          Here are some of the most utilized AI tools for HR.

          Talent Search Engines

          Sophisticated AI algorithms scour talent databases and platforms to identify prospective employees. They can create a list of candidates who meet employers’ specific qualifications, skills, and experience levels. This expedites recruitment while building a more diverse pool of high-quality candidates, too.

          AI Chat

          Programmed to handle routine employee queries, chatbots can provide instant responses to common questions.

          For AI in HR, this might include questions regarding policies, benefits, and procedures. Relieved of basic inquiries, HR professionals can focus on strategic priorities. The result is both better employee experiences and more organizational success.

          Performance Management Software

          AI-powered performance management tools can analyze performance data, detect patterns, and highlight areas for employee growth. Personalized feedback and customized training programs follow, arming employees with continuous support in career development. 

          Overall, these tools improve employee performance today and in the future. 

          Onboarding Software

          Automating administrative tasks with AI streamlines the onboarding process for new employees. Compliance tracking and document management are more efficient under the management of AI onboarding platforms. 

          Some businesses use these tools to create onboarding checklists for new employees to check off as they progress through the first months at a new company. It can also create unique messages or prompts for employees to engage them or remind/encourage them to complete a certain onboarding task.

          Predictive Analytics Tools

          Through algorithms revealing insights from historical data, these forecast future HR trends like turnover, hiring needs, and training requirements. Anticipating challenges rather than dealing with them after they take place helps HR leaders make proactive rather than reactive tools. 

          For predictive analytics in finance, entrust Datarails’ analysis and scenario modeling software. Teams use it to look deeper into their data and get more precise and accurate forecasting about the future of their company. 

          Employee Wellness 

          While it might not be as well-known as some of the other uses for AI in HR, there are several ways for organizations to use AI to maximize employee wellness. In doing so, employees benefit from healthy habits, but organizations can also benefit by having happier, healthier employees.

          In fact, one 2020 study found that when employers implement health risk reduction programs, absenteeism is cut by 25%. The same study found that this also boosts productivity by 32%

          AI-driven platforms can promote employee wellness by monitoring certain health risk indicators. This ranges from their work habits to stress levels. Personalized recommendations help them balance work and life while also supporting mental health for a healthier, high-performing workforce.

          Other uses for AI in wellness and HR include creating customized fitness or nutrition plans, mental health support (including chat functions), and optimized scheduling. 

          Learning and Development Systems

          Drawing on employee profiles, these systems craft customized employee training. This customization allows HR teams to make training programs that align with unique skills, careers, and performance. Ongoing training helps fuel competency, career growth, and performance. 

          Ethical Considerations for HR AI Tools

          The use of AI in any industry is subject to discussions about its ethics, and taking these into account before implementing these tools is a best practice for AI tools for HR.

          In human resources, there are two primary ethical considerations when it comes to the use of artificial intelligence: bias and privacy.

          Here are strategies to manage both.

          1) Bias

          AI algorithms are trained by humans. Naturally, humans make mistakes, which means algorithms can learn from these mistakes. In the case of bias, if an algorithm is trained with biased data or content, its output can be just as biased. 

          To overcome this challenge, strategies specifically meant to deal with bias in AI algorithms should be included.

          This includes:

          • Using diverse data sets
          • Implementing bias detection and mitigation techniques
          • Have team members from different departments regularly evaluate algorithms 
          • Gather feedback about these algorithms and the use of AI for a specific organization
          • Implement clear ethical guidelines and AI policies to govern its use

          2) Privacy

          There are some concerns about the implications on privacy when organizations use AI. Along with implementing ethical guidelines for its use, this means it’s just as critical to implement robust security and privacy measures. 

          The data protection regulations that apply to your organization (examples include GDPA and HIPAA) serve as an excellent guideline for doing so. 

          Datarails and AI in HR

          Datarails supports a number of integrations, including specific HR tools like BambooHR and HiBob. By supporting these award-winning HR management tools, Datarails offers a comprehensive and seamless experience for AI in HR.

          To get firsthand insights into this experience, book your demo with Datarails today. 

          AI in HR: FAQs

          How is AI being used in HR?

          Organizations use AI to automate many of the tasks and functions of HR.

          Key uses include:

          • Talent acquisition
          • Performance management
          • Employee engagement
          • Predictive analytics
          • Onboarding
          • Talent management

          Can HR be replaced by AI?

          This is an important question, as one study found that 43% of respondents have concerns about losing their job as a result of automation in HR. 

          However, much like AI in finance, there will remain a need for the “human” part of human resources. While some tasks will be automated, this doesn’t mean all of them will. Instead, AI should help HR get more time back to focus on the tasks that AI isn’t expected to be able to automate any time soon. 

          Further, almost three quarters of business leaders believe in the long-term value of HR and see its importance in the success of their company.

          How does AI help in HR in decision-making?

          In HR, AI helps teams analyze data more efficiently and accurately. With this precise analysis, they can then make data-driven decisions about things like the future of the company, employee engagement and satisfaction, and other important business decisions. 

          What are the benefits of adopting AI in HR?

          HR teams that adopt AI note a number of benefits, including:

          • More efficient work
          • Streamlined processes
          • Faster employee recruitment
          • Employee wellness improvements
          • Skill gap analysis
          • Resource allocation

          What is responsible usage of AI in HR?

          Using AI in human resources demands the same responsibility that’s required in any industry. This means taking into account any ethical issues, including bias and security. When AI is used thoughtfully and in a controlled setting, it is less likely to have negative ethical implications. 

          Did you learn a lot about AI in HR in this article?

          Here are three more to read next: