The Impact of AI on HR Process

The Impact of AI on HR Process

  April 18, 2023

Written by – Rashika Thaurani, SEB Marketing team

Artificial Intelligence has disrupted the world with its ability to make processes efficient and time-saving. The human resources industry was one of the few that adapted to AI in the early 2000s by using tools such as applicant tracking systems. The impact of AI has been massive over the last few years and is continuously leaving a mark on the industry. Various companies are using AI as part of their HR Processes such as Royal Bank of Canada, Capital One, Morgan Stanley, Uber, and many more.

Over the years, the development of AI has led to various functions being automated with HR. Some of the functions include:

  • Recruiting and hiring
    AI has simplified ample tasks related to recruiting and hiring such as job posting, resume screening, scheduling interviews, and sending feedback and job letters.
  • Onboarding
    Onboarding tasks like verifying employee documents, inductions, providing IDs, and access to company assets can be done using AI-powered software.
  • Performance Management
    AI can help HR track and measure performance and develop a better understanding of employees’ potential.
  • Learning and development
    With AI, learning, and development can be specialized for each employee based on their strengths and weaknesses. This provides support to HR in creating smart learning goals for each employee as per the software assessments.
  • Internal mobility
    AI-integrated software can be used for internal transfers within the organizations. AI tools can be used to match existing employees for new positions based on their skills instead of just posting a new job ad, helping companies save money on the recruitment process.

The advancement of technology is shaping the way the HR sector is transforming the workplace.

Here’s an article that gives examples of AI usage in HR: Explore AI software for your Human Resources Management

However, there is an ongoing debate in the market regarding the impact of AI on HR Processes and the various limitations that come with it. With technology and advancement, there are growing concerns of the risk of sensitive data being compromised. If data security is breached by the use of AI tools, it can lead to disastrous issues for the organization. Another worry for HR professionals is the lack of emotions in AI processes, as some believe AI is dehumanizing the whole human resources process.

The evolution of AI in HR is complex with many aspects to consider. There is no doubt that AI has simplified various mundane tasks in the HR domain, making the processes quicker and easier but everything comes at a price and AI is a relatively new development that comes with its own challenges. It is expected in the coming years that the majority of organizations will be adapting to AI-integrated tools in HR. Having said that, there needs to be a balance between human involvement and technology so that human resources can optimize processes and insights effectively.