The adoption of artificial intelligence (AI) seems to be happening at a lightning pace. But there’s more to AI than ChatGPT and image generators. Increasingly, businesses are using AI for task management, data analysis, workflow automation, and more.
HR professionals in particular can make use of AI technology in recruiting, onboarding, performance management, and other HR processes. But despite its clear benefits, the use of AI in HR has some risks and challenges that HR teams need to be aware of.
Let’s take a look at what HR leaders need to know about AI in the HR department, and how you can use it to streamline workflows and improve the employee experience.
What Is the Role of AI in HR?
The role of AI in human resources has expanded rapidly, with HR departments using AI-powered software to sort resumes, track employee performance, resolve support requests, and facilitate other time-consuming tasks.
We can break AI down into two broad categories:
- Generative AI: Generative AI tools are used to create content, such as words or images, based on human-generated prompts. For example, an AI tool could use the information you provide to create a job description for an open position.
- Assistive AI: Assistive AI is used to augment human performance, for example, by performing routine administrative tasks or analyzing complex data sets.
The difference between AI-powered tools and other types of HR technology is that AI systems use machine learning to get better over time. Simple HR tools use software bots to perform routine tasks, like sending out reminder notifications.
AI-powered tools use natural language processing (NLP) to understand the content of messages, and predictive analytics to make educated guesses about the future. These advanced algorithms can be used to facilitate complex HR functions, transforming the HR department and shaping the future of work.
What Are the Benefits of AI in HR?
Getting your HR systems to work smoothly and efficiently is a must for any business, but HR processes can be time-consuming and prone to human error. AI technology brings the follow benefits to your HR team:
Increased Efficiency
Business process automation (BPA) is a way of using software to streamline workflows by reducing or eliminating manual tasks. Chances are your HR team already uses BPA tools for routine tasks like sending out automated emails to potential candidates when you have an update on the status of their job application.
Intelligent process automation (IPA) goes one step further by using artificial intelligence to adapt to new information in real-time. For example, if your HR cases are too complex for traditional case management software, you can use a dynamic case management platform like Pulpstream with the flexibility to handle exceptions to the rule.
Better Data and Decision-Making
AI tools use natural language processing and machine learning to parse data sets that are too complex to make sense of manually. By digitizing your business practices and applying AI technology to your data, you can identify opportunities for improvement or areas of concern and eliminate data silos across your organization.
For example, Pulpstream’s claims management software offers built-in claims analytics so you can group claims by month or type and make better data-driven decisions.
Improved Employee Experience
The use of AI in HR can provide a better employee experience and increase retention by resolving employee relations issues more efficiently. From automated assessments and workplace safety trainings, to AI chatbots that can route employee inquiries to the appropriate team member, AI adoption can take the friction out of talent management and boost employee engagement throughout your organization.
HR managers can use workforce analytics during the talent acquisition process to make informed hiring decisions and support employees’ professional development, increasing employee well-being and reducing the likelihood of burnout.
Key Use Cases for AI in HR
AI tools don’t require you to replace your existing systems and software. In fact, in many cases, they can augment them with new features and capabilities. Here are two ways to use AI in HR to streamline your existing processes:
Onboarding New Hires
The recruiting and hiring process is one of the most time-consuming responsibilities for your HR team. AI-powered tools can do everything from craft job descriptions to review resumes to see if they align with your desired qualifications for the role.
Once you’ve extended a job offer, streamline the onboarding process with onboarding automation. You may be surprised at how much you can automate with a no-code HR platform like Pulpstream — everything from account generation to employee benefits enrollment — saving you time and getting your new hire on the job faster.
Performance Management
Traditional performance management practices use annual reviews to take a snapshot of an employee’s performance. Modern practices incorporate 360-degree reviews and self-feedback, but this can result in too much information for a manager to handle.
With an AI-powered platform like Pulpstream, you can track metrics like attendance and absenteeism year-round and get a 360-degree view of every case. Plus, our built-in AI engine identifies patterns and provides recommendations for each employee.
What Are the Risks of Using AI in HR?
There’s no doubt that the future of HR practices will involve using some form of AI to shape the employee lifecycle. But alongside the hype about AI in HR, there are also some genuine concerns about its impacts on the workplace.
Here are three risks of AI in HR to keep in mind:
Bias
From an employer’s perspective, using AI in the recruitment and hiring process can help you narrow down resumes and find the right candidate faster. But while Americans are split about using AI to review job applications, 71% oppose using it for “making a final hiring decision,” according to the Pew Research Center.
AI tools can reinforce racial and gender bias and filter out quality candidates. HR teams need to be aware of the potential for discrimination in the recruitment process and take steps to mitigate it when using AI tools to find new employees.
Privacy
AI tools can help you keep tabs on your workers by tracking employee attendance and productivity metrics. But workplace surveillance can easily cross a line. According to the Pew study, Americans were opposed to using facial recognition to analyze employees’ facial expressions, but were in favor of using it to track attendance.
The degree to which you use AI will depend on your company culture. Be transparent with employees while describing what types of data your AI tools will collect, and give employees the option to provide feedback on your AI initiatives.
Skill Gaps
Concerns that AI will replace human employees are genuine, but it’s more likely that job descriptions will change as AI tools take on more of the workload. This may result in an adjustment period as employees transition from administrative tasks like data entry to more specialized forms of knowledge work.
Consider implementing a training program to upskill or reskill displaced employees, and use no-code tools like Pulpstream to ensure that employees don’t need to be proficient in software development or coding to participate in your digital transformation.
Prepare for the Future of Work with an AI-Powered Platform
AI tools are transforming the future of work — but you don’t have to roll them out in such a way that they eliminate the human touch. From the recruitment process to employee relations, HR teams can use AI to streamline workflows, increase employee retention, and make better, data-driven decisions about your workforce.
Pulpstream’s cloud-based automation platform helps you improve HR processes with an intuitive interface that anyone on your team can use. Use our built-in integrations to link other HR tools, and empower your employees with a mobile app and self-service portal that they can use to resolve HR issues on the go.
Request a demo today to see Pulpstream in action!
