Employee ExperienceLearning and Development

How does AI help HR?

5 Mins read

“You can’t differentiate between a robot and the very best of humans.” –  Isaac Asimov

Although artificial intelligence (AI) has been transforming our lives for years, it is now more prevalent than ever. When a new AI-powered system, tool, or product debuts and outperforms us, the humans, sometimes we don’t even notice it. AI is having an impact on human existence on a variety of levels, including:

  • the automation of tasks that require a lot of time and effort;
  • the improvement of human talents;
  • the enhancement of human abilities.

While “AI in HR” may sound like a paradox in itself, it is widely spreading

It is becoming essential to adopt digital transformation to automate, streamline, and make data-driven decisions in this competitive climate. Data insights now is used for a variety of applications due to availability of sources for storing and processing it. By assisting businesses in forecasting future events, artificial intelligence has catalyzed the usage of big data. AI focuses on creating intelligent machines that make decisions at almost human levels of intelligence. Using learning algorithms on data sets, machine learning (ML) is a subset of AI that gathers, uses, and analyzes data. When ML’s data insights are applied to decisions without human participation, AI enters the picture in HR. ML does not operate on its own.

Personnel Today reports that 38% of businesses are already utilizing AI in the workplace, with 62% planning to do so this year. 33% of employees, according to Bersin by Deloitte, believe that AI will soon augment their jobs in some way.

How does AI transform HR?

AI may improve the hiring and working experience of candidates and employees. This, by automating operations and streamlining the procedures, in addition to providing data-driven insights and predictive analyses for decision-making. It can relieve HR of tedious administrative duties, challenging excel spreadsheets, and paperwork. The time that is saved can be put to better use by developing relationships with clients, staff, and candidates. Firms have been more receptive to using AI-backed HR Tech solutions to boost the function’s efficiency and effectiveness. These are some of the HR use cases for AI:

Engagement & Retention of Employees

Employee retention and productivity are thought to be strongly influenced by employee engagement.

  • Automated virtual support for employee self-service can improve this. Employees can resort to chatbots or virtual assistants immediately for human-like contact if they have any issues with policies and procedures for benefits, insurance, leaves, reimbursements, etc. Instead of writing or asking HR, they can use chatbots or virtual assistants. AI-powered chatbots can understand the natural language inquiries from staff members and map them to the relevant document or guide in the form of direct links or succinct responses. This might also be effective in terms of the Latent Semantic Analysis method of ML’s similarity score idea. When it comes to frequently asked questions (FAQs), this can be incredibly helpful and time-saving;
  • Using data points/attributes like tenure with the organization, performance evaluations, number of promotions/duration of promotions, or salary which may influence employees to decide to quit, AI models can be used to forecast attrition. By addressing employee issues, HR may be proactive and reduce the expenses associated with employee turnover;
  • AI can also assist HR professionals in monitoring employee sentiment through communication channels like internal posts on any work-related issue, chatbot comments, or employee engagement survey responses. The chosen text can provide a clue as to whether the message is good, negative, or neutral. When there are low levels of employee engagement or motivation, which could lead to attrition, it serves as an indicator that addressing is necessary right away. It resembles a natural language processing method exactly.
HR

Automation

  • The workflows automate and streamline to save time and money. AI systems can handle routine, high-volume administrative duties, freeing HR to focus on developing deep connections and relationships with candidates and employees. Additionally, it helps HR to expand its position beyond purely transactional tasks and become a strategic business partner;
  • Automated communication powered by AI can quickly spread important information to staff members, such as updates to company policies and internal announcements;
  • The workload of recruiters is reduced by using an ATS powered by AI to create automatic messages based on the status of candidates and communicate with them. Additionally, it can offer feedback or track the status of a candidate’s application during the hiring process.

Strategic Recruitment

By the end of 2020, two-thirds of all staffing firms will have adopted AI-driven applicant tracking systems (ATS).

  • The study of social media and internet data about potential candidates, which may include data points like education, social media posts, experience, skillset, recommendations, etc., might allow AI to discover passive individuals that may exhibit interest if called out to. Data scientists can estimate a candidate’s reaction using regression, or probability ranging from 0 to 1, and artificial neural networks. It is also possible to determine the appropriate source or channel for applications for open requisitions;
  • From hundreds of applications collected via the one-click Apply button, AI can automate recruiters’ screening processes and best match. Based on the results of a pre-screening questionnaire or a matching algorithm for resumes and data points from the job description, it may place qualified candidates at the top of the list. The Applicant Tracking System (ATS) prioritizes candidates with strong match scores and saves time by excluding applications that aren’t relevant. Keyword match/similarity scores from ML models determine how similar two documents are, for example a résumé and job description;
  • AI can improve candidate engagement and the hiring process with digital support such as chatbots and automated processes. By using cognitive and rule-based chatbots to help with applications, the processes are eased. Pre-screening, arranging interviews, performing video interviews, or answering common queries can enhance both the candidate and recruiter experience;
  • Using historical credentials and interview assessment/performance scores, hiring managers may be able to forecast candidates’ future performance as employees using AI. Past credentials and performance ratings that can be utilized to forecast the future will be the input data. Again, straightforward artificial neural networks might be useful here.

Learning & Development

Following COVID-19, L&D has taken on a new normal as firms prioritize their employees’ upskilling, reskilling, cross-functional skilling, and continual learning in order to keep them relevant in the upcoming uncertain future. It revolves around providing employees with a Personal, Precise, and Proactive attitude. 

  • An efficient LMS and AI can work together to help generate customized learning paths for employees depending on their skill set requirements;
  • By examining the evaluations given by employees who are comparable to the employee in question about various training programs, AI can also make it easier to find and recommend a training program for that person. For desired results, data scientists advise employing the User item recommendation technique of ML using deep learning and word embedding. It uses the same principle as Netflix and e-commerce to provide suggestions of goods and services for users. The highest expected ratings that staff members may give each of the courses not taken are used to determine which training courses should be recommended;
  • AI chatbots that can provide real-time automatic assistance during a training program and answer inquiries 24 hours a day can be implemented into LMS. To improve the learning experience, it can also provide a list of training courses depending on the interests, skill gaps, or questions of the employees.

Conclusion

In HR, artificial intelligence is indeed useful. You only need to keep in mind the essentials that help you benefit from its advantages while preventing potential risks. Create and employ AI systems with equity and empathy in mind and take the necessary security safeguards. Successful integration of AI into your HR procedures and strategy keeps your business at the forefront of the market.

Further Readings

The 7 Best Tips For HR Data Security in 2023
How Labor Unions Facilitate Employee Engagement: Advantages & Disadvantages
Hard and Soft HRM Approaches: A Comparison
When, How and Why Employees Become Advocates – Part One

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About author
Fatjona Gërguri is the content writer for Employee Experience Magazine, covering the relevant topics about employee experience, organizational culture and general HR topics.
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