What Is AI in HR

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What Is AI in HR

Before we get into the impact of artificial intelligence on human resource management, let's ensure that we're all starting this conversation on the "same page." If you've been paying close attention to developments in AI recently you've probably heard mention of several "types" of AI. These are traditional and generative AI. Traditional AI (if AI could ever be referred to as traditional) is the type of AI that is pre-programmed to perform specific tasks and can only operate within those parameters. Generative AI, on the other hand, has much more capability. This type of AI can learn from data and adapt its actions accordingly.

Traditional AI was introduced into human resource management (HRM) by integrating it with HR information systems (HRIS), which have been used to store and analyze employee data for years. However, the recent advancements in Generative AI have allowed for much more sophisticated use cases within HRM.

Generative AI HR Use Cases:

Numerous use cases are showing the positive effects of AI in HR. One of the most impactful uses of generative AI in HR is recruitment and talent acquisition. With the ability to learn from past successful hires and analyze a vast amount of data, AI can assist in identifying the best candidates for an open role. This not only saves time for HR professionals but also increases the chances of finding the right fit for the organization- which leads employees to stay long-term. Tools like interview intelligence software by Pillar use generative AI to look at previous successful hires and assess future hires based on similar criteria. 

AI is also being used to improve employee engagement and retention. By analyzing employee behavior and performance data, AI can identify patterns that may lead to a higher likelihood of turnover or disengagement. This allows HR professionals to intervene and address any underlying issues before they escalate into organizational challenges.

Another area where AI is making an impact in HR is in onboarding, training, and development. With the ability to personalize learning experiences based on individual employee data, AI can improve the effectiveness of training programs. It can also provide real-time feedback and suggestions for improvement.

This specific use case can be seen when you look at Pillar's interviewer coaching tools. In the interview process, not only is the candidate being assessed but the interviewer is too. Pillar's interviewer coaching tools help hiring managers, HR, and recruiters hone their hiring skills, eliminate bias from hiring processes, and make better hiring decisions through training and feedback - and this is just one of many examples where AI can intervene to help a team improve.

Examples Of AI in HR

Another example of AI in HR is the use of chatbots. These digital assistants can help HR teams handle routine inquiries and tasks such as answering frequently asked questions, scheduling meetings, and onboarding new employees. This frees up time for HR professionals to focus on more strategic initiatives.

AI is also being used to improve employee experience. By analyzing data from surveys, performance reviews, and feedback, AI can identify areas of improvement in employee experience and provide personalized recommendations. This leads to a more engaged and satisfied workforce, which, in turn, can improve overall company performance.

Moreover, AI can also assist in diversity and inclusion efforts within an organization. By analyzing data on hiring practices, promotions, and employee interactions, AI can identify any potential biases and help HR teams make more fair and equitable decisions.

These all lead to incremental efficiency increases for HR teams, streamlining processes and uncovering insights from complex data - one of the primary benefits of AI in HR. When you add 5 - 10% increases in efficiency to each step of your hiring process, you can generate some pretty incredible results.

Most companies have a 6 to 8-step hiring process that begins with sourcing and ends with negotiation. Each step in this process is a chance to save time and money, reduce bias, improve accuracy, increase candidate satisfaction, and generate valuable data that can be used to improve future hiring efforts- and a 5% efficiency increase at each step can lead to 50%+ for the whole process.

So, what's the impact of AI in HR and on recruitment? It's significant. From improving recruitment and talent acquisition to enhancing employee engagement and experience, AI is revolutionizing the way HR professionals work. And as technology continues to advance, we can expect even more innovative uses of AI in the HR industry.

Let's build an example AI hiring tech stack to showcase the possibilities. Hypothetically, you're a one-person HR team at a rapidly growing biotech startup, and you need to hire 10- 12 people a month to keep up with demand and need half a dozen tools to meet your objectives. I'll start with the assumption that you already have the basics covered- applicant tracking systems, onboarding systems, and the like- so let's build from there.

The first thing you need is candidates. Now you could surf your LinkedIn network and make a few posts on the company page about open roles, but you have very little control over the results that will generate. Instead, you could spring for an AI sourcing tool that integrates with your ATS system. Our recommendation is HireEZ. HireEZ automatically sifts through the resumes and suggests the best candidates for you to follow up on.

Then you probably need a digital assistant to integrate with your ATS and help you manage the workload of getting everyone assessed and scheduled for interviews. We like Paradox.ai's Olivia, but there are other great tools on the market as well.

Now that you have a few extra qualified candidates in your pipeline, it's time to start screening and interviewing them. Pillar's interview intelligence (shameless plug), can help you identify top performers early on in the process. By analyzing data from successful past hires and assessing candidates' responses, Pillar's software can help you narrow down your options and make more informed decisions.

Next, you need to onboard your new employees with a tool like BambooHR or Greenhouse and manage their performance as they "ramp" into their new role. These are just 3- 4 of the AI-powered tools that support your hiring objectives, but there are more out there.

The use of AI is not only limited to recruitment and HR processes; it also has the potential to transform company culture. By constantly collecting and analyzing data on employee engagement, satisfaction, and performance, AI can identify areas where the company can improve its overall culture and make targeted changes.

AI In HR Examples

Now that you have a baseline of how artificial intelligence in HR is reshaping team and organizational culture, and some of the benefits of AI in HR, let's dive into some specific examples of how it is being applied in the industry.

The Future of AI in HR:

1. Recruitment and Talent Acquisition: As mentioned earlier, AI is playing a significant role in sourcing, screening, and interviewing candidates. It can analyze resumes and job descriptions to find the best match, predict candidate success based on past hires, and even conduct video interviews autonomously.

2. Employee Experience: AI is being used to identify patterns and trends in employee feedback, performance reviews, and engagement surveys. This data can be used to personalize recommendations for employees and improve overall satisfaction and retention.

3. Diversity and Inclusion: With the help of AI, HR teams can identify any potential biases in hiring practices or employee interactions. By addressing these issues, companies can create a more fair and equitable workplace for all employees.

4. Performance Management: AI-powered tools can assist in tracking and analyzing employee performance, providing valuable insights for managers to make informed decisions on promotions, training opportunities, and goal setting.

5. Learning and Development: AI in HR examples can help identify skill gaps in employees and recommend personalized learning opportunities to improve their skills, leading to a more knowledgeable workforce and a competitive edge for the company.

6. Employee Wellness: AI can also be used to monitor employee wellness, such as stress levels and burnout, through data collected from wearable devices or self-reported surveys. This information can help companies address any potential issues and promote a healthier work-life balance for their employees.

No longer just a buzzword, AI is the future- and the future is bright. With endless possibilities for improving processes, increasing efficiency, and enhancing employee experience, AI-powered tools are poised to completely revolutionize HR. As technology continues to advance, we can expect even more innovative uses of AI in the HR industry, ultimately leading to a more effective and engaging workplace culture.

As an HR professional, it's essential to stay informed and up-to-date on the best tools, processes, and innovations in the industry. As these technologies continue to advance, hiring will speed up, costs will go down, and the need to adapt and incorporate new AI platforms into your recruitment to stay competitive will be crucial.

If you've been thinking about implementing AI-powered tools into your hiring process but haven't pulled the trigger yet, reach out to someone from our team. We'd love to show you how AI-powered tools like interview intelligence can streamline your hiring processes and help you make better hires. Book your demo today to see AI in action and take your HR game to the next level!