How is AI Transforming HR for Companies?

How is AI Transforming HR for Companies?

Human resources are no less than a building block for organizations. A robust HR team can take companies and organizations to the next level; at the same time, a weak one can spoil established companies. It is vital to nurture and improve the human resources department. After all, this service line recruits the workforce. Stats show the AI market is expanding at a CAGR of 38.1% between 2022 to 2030. AI is claimed to be a top priority in their business plans by 83% of companies.

Artificial intelligence is transforming HR by making it more efficient and unbiased. Contrary to what many people assume, AI has the power to enhance the concept of human contact in HR.

Human resources deal with people and their attitudes. From planning to implementation, several processes come under the HR department. Making new policies, ensuring onboarding standards meet the standards, and whatnot— the HR service line also looks into labour relations, performance management, and job design. The HR team assists in achieving the mission and vision of an organization. The use of AI in HR will not only increase the efficiency of the company but also give employees more alignment with its objectives.

Impacts on Jobs Due to AI in 2022 Worldwide
Impacts on Jobs Due to AI in 2022 Worldwide

As of 2022, the global AI market is valued at over $136 billion. Over the next 8 years, it is expected to increase by over 13 times. AI has and will have a heavy impact on job opportunities. It is estimated 2.3 million jobs will be created, while 1.8 million jobs will be eliminated by AI worldwide in 2022.

What is Artificial Intelligence?
How is AI Influencing Human Resources?
Companies using AI for HR Management

What is Artificial Intelligence?

AI refers to Artificial Intelligence, a tech which enables computers to think and acts like a human. Organizations are using AI to improve productivity. AI takes decisions based on the input provided. It uses a certain kind of algorithm. With work-from-home culture now mainstream and organizations becoming people-sensitive, the need for AI is escalating.

Most of the activities executed by HR are now being managed by AI. It empowers human resources to enhance contacts. According to a survey, 60% of organizations are using AI for talent management.

Key Benefits of Artificial Intelligence
Key Benefits of Artificial Intelligence

How Artificial Intelligence Is Transforming Business
The mimicry of human intelligence is called Artificial Intelligence. Or Thedevelopment of intelligent machines, thinking, and working like humans is called Artificial Intelligence. With the help of machine learning, we can develop an Artificial Intelligence. Machine Learning is an application of …

How is AI Influencing Human Resources?

Uses of AI to Assist Workers in Their Organization as of 2020
Uses of AI to Assist Workers in Their Organization as of 2020

Artificial Intelligence in Daily Tasks

AI can take over several tasks that the human resources department deals with on a day-to-day basis. It can give responses to prospective and current employees. It can also help with questions related to policies and procedures. And this is just the tip of the iceberg when it comes to AI's capabilities. It can also free up time for HR professionals to focus on other work.

Handling forms of different kinds, simplifying training sessions, and AI systems can execute various other tasks.

For organisations, choosing the right talent is a crucial task since employees are the cornerstone to success. When it comes to skills, companies generally have some set of standards. AI can help the HR department to filter resumes as per the desired skill set. AI systems can screen resumes according to the data they are trained on. The department will then have to spend lesser time on the selection process.

Providing Training

AI can help new employees by providing efficient training. A conversational chatbot can be used for this purpose. Employees facing any difficulty can send messages to the chatbot. The latter will reply based on the way it's programmed. Moreover, the chatbot shall give employees the flexibility to complete external and internal training according to their convenience. At times, employees don’t know whom to contact for queries. An AI-powered helpdesk can facilitate the situation.

AI in decision Making

Artificial Intelligence can help employees to understand their moods better. Due to workload, employees aren't able to give their best at times. AI can be trained to provide personality and behaviour insights. Individuals can then use this system to facilitate decision-making.

Employee Retention

AI can help the HR team to analyze the reasons behind layoffs and retain more employees. Believe it or not, AI-based systems can help manage the workforce, and that too a satisfied one.

AI can detect and analyze employees who are disengaged or unproductive. It can provide insights as to where the company is lacking, or why its people are discontent.

Transforming the AI employment landscape - AlmaBetter Data Science LER Program
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Appraisals keep the workforce motivated. And the process should not be partial or biased. AI has a role to play here as well. It can ensure employees get the results in tandem with their performance. Giving appraisals or bonuses to the suitable candidate can boost productivity immensely. Moreover, appraisals require neutral thinking, something which AI is capable of.

Companies using AI for HR Management

Companies such as Google, Amazon, IBM, Unilever, L’Oréal, IKEA, Adecco, Hays, Deloitte, Vodafone, PwC, Oracle, TCS, Accenture, and Tech Mahindra have adopted AI for HR Management.

Some AI platforms/tools for HR selection and recruiting are HireVue, Mya Systems, HiredScore, Wade & Wendy, AllyO, Textio, Turing, Toptal, Manatal, Skillate, TurboHire, Talenture, Fetcher, SeekOut, Zoho Recruit, Paradox, Humanly, Findem, hireEZ, AmazingHiring, Loxo, , Textio, myInterview, and Arya, Pymetrics.

AI cuts time spent on CV verification, and other recruitment processes. The best eligible candidates are filtered out. Unilever, L’Oréal, and IKEA are the B2C using AI to transform their Candidate Sourcing Strategies.

Company Name AI Hiring Assistant/solution Purpose
IKEA Robot Vera Conduct interviews and send out
customized follow-emails
Unilever HireVue Assessments Hire the best and most diverse graduates
among potential candidates
L’Oréal Mya Filter out the best candidates among the
received job applications

AI adoption in HR is increasing. Here is a list of a few companies revolutionizing recruiting process using AI.

AI platform/solution used Companies using the platform
HireVue 700+ companies, including Unilever, Vodafone, PwC, and Oracle
Mya Systems L’Oréal, Adecco, Hays, Deloitte, and more
HiredScore Trusted by 40% of the Fortune 100: Intel, Dell, Domino,
Johnson & Johnson, and more
Wade & Wendy E-Trade, Randstad, Comcast, and more
hireEZ Deloitte, VISA, Amtec, Wayfair, CommonSpirit, and more
AllyO Walmart, Hilton, AT&T, FedEx, Arbys, and more

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The impact of AI on HR Management is now extending to use cases and problems hitherto unexplored. It is providing helping hands to people in their work. Health, finance, banking, computing, marketing, and management. Artificial Intelligence is penetrating every imaginable industry. With unbiased results and the ability to be improved further, AI is here to stay.


How will artificial intelligence affect human resources?

AI provides HR departments with an opportunity to improve the candidate and employee experience by automating repetitive, low-value tasks and freeing up time to focus on the more strategic, creative work that HR teams need and want to get done.

What is artificial intelligence in human resources?

At a high level, AI is a technology that allows computers to learn from and make or recommend actions based on previously collected data. In terms of human resources management, artificial intelligence can be applied in many different ways to streamline processes and improve efficiency.

What is human resource transformation?

Human resource transformation is the process of fundamentally rethinking and rechartering the HR function/department in the organization. If HR professionals do that, they become the “go-to” people to help operating managers address “people problems” they face in getting the organization's work done.

Can technology replace human resources?

No, technology is not stealing human resources jobs; instead, it's helping small businesses work more efficiently. Although apps and software eliminate some tasks, they typically aren't enough to replace a person in the workplace.

What are some benefits of AI?

  • 24x7 Availability
  • Saves time
  • Saves money
  • Reduces Human Errors
  • Removes human bias
  • Daily Applications

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