As AI (Artificial Intelligence) technologies advance, their role in human resources is now widely discussed. According to Gartner, 81% of HR leaders explored or implemented artificial intelligence (AI) solutions to enhance operational efficiency within their respective organizations. While AI may still be a relatively new concept for many, most experts had foreseen its potential to automate and transform the corporate landscape. AI exhibits the ability to execute tasks involving human-like cognition with remarkable speed and precision. So how does AI transform HR operations? Let’s see: 

What is the role of AI in human resource management?

The role of artificial intelligence (AI) in human resources is multifaceted and enables a more strategic HR management approach. Some other key areas where AI plays a significant role in human resources include: 

  • Automated recruitment reports 
  • Real time query management 
  • Enhanced administrative accuracy 
  • Efficient benefits administration 
  • Unbiased screening & performance management 
  • Data-driven insights 

5 Crucial Ways in which AI has Transformed HR operations

AI has transformed HR operations by automating repetitive tasks, such as candidate screening, employee engagement, and talent management. This empowers HR to address critical business challenges, thereby improving operational efficiency. Here are five essential ways in which AI has revolutionized HR operations: 

1. Recruitment Automation

Finding the right candidate for a job role is one of the major challenges of any recruiter. For this, they would need to go through the resumes of hundreds of potential candidates. However, AI can streamline the entire recruitment process, from analyzing resumes and job applications to identifying the right candidates ensuring unbiased candidate selection.  

2. Personalized Employee Onboarding

Employee onboarding is a crucial phase as it is where candidates form their impression of the company. According to research by the Brandon Hall Group, organizations with a robust onboarding process can improve new hire retention rates by up to 82%. AI can help in guiding new joinees through their onboarding process via chatbots . It can also create a personalized onboarding experience to help them quickly adapt to their work environment and understand their responsibilities. 

3. Administrative Work

AI can handle routine administrative tasks like managing employee benefits, addressing employee queries, and processing leave requests. This helps HR professionals dedicate more time to mentoring, providing constructive feedback, participating in employee engagement, and working on different strategies that impact the overall success of their organization. 

4. Performance management

AI can generate personalized goals and targets based on organizational KPIs, tracking performance according to employee profiles. It can also assist managers & HR professionals in evaluating employee performance and suggesting areas of improvement. This data-driven approach can lead to a more effective performance management process which is free from personal bias. 

5. Learning and Development(L&D)

Research indicates that organizations with artificial intelligence (AI) & virtual reality (VR) in their L&D programs have experienced an average efficiency boost of 57%. AI can identify & offer personalized learning programs, assist in training via simulations and conduct assessments. It can also identify skill gaps and recommend upskilling coursesThis enables HR professionals to design customized learning and development programs that cater to the needs of their workforce with alignment to organizational goals and market requirements. 

Conclusion

In short, debate on whether AI can fully replace humans in the workforce continues. However, while AI has the potential to enhance HR operations, it cannot replace humans entirely. Human resources still require a human touch to effectively utilize AI. And so, contrary to popular belief, AI is not here to replace human resources but to enhance their functions. It is certain that by employing AI in HR, organizations can improve recruitment, retention, employee engagement & performance. AI has transformed the world and will continue to revolutionize HR as we know it.