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The use of AI in the HR industry

How AI and HR now go hand-in-hand...

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In what seems like no time at all, AI has become a leading topic of discussion the world over, as huge advancements in the AI arena have seen new AI functions such as chatbots catapulted into everyday use.

At present, AI is being lauded as “the most innovative and promising arena for workplace and workforce management,” with 40% of HR functions in use around the world consisting of AI-supported applications.

So, let’s examine how AI is being used in the HR industry.

Recruiting

AI is now widely used in recruitment processes the world over. From composing job descriptions, to screening job applications, to communicating with applicants, AI can now be used at every stage of the recruitment process. Business News Daily reports that in Eightfold AI’s report The Future of Work: Intelligent by Design, which surveyed 250 HR leaders, found that 73% now employ AI in their recruitment and hiring processes – with 42% reporting that they intend to increase their usage of AI in this area.

Many organisations utilise platforms such as LinkedIn to engage candidates. LinkedIn offers AI-generated job descriptions, and screens potential candidates for the employer. Business News Daily reports that AI can be utilised to keep track of conversion rates, thereby supporting employers and recruiters to streamline their hiring strategy.

Employing AI in the recruitment strategy has both pros and cons. The pros involve improved efficiency, the optimised and speedy completion of tedious grunt work, and avoiding human error which may result in the overlooking of viable applicants.

The cons include bias, with Searchlight CEO and co-founder Kerry Wang noting, “AI is only as good as the rules that program it, and machine learning is only as good as the data it relies on.” Since AI is ultimately programmed by human beings, human bias can sneak in. This can result in ethical issues, such as the selection of a particular demographic of candidates over another for interviews. So, it’s important that organisations continue to monitor and evaluate their use of AI consistently.

Onboarding and offboarding processes

AI is often used to support in the onboarding and offboarding of employees. In fact, 69% of respondents in Eightfold AI’s report stated that they use AI in their onboarding processes, with 40% intending to increase their AI use in this process.

Chatbots are often used to support new employees through their onboarding process, providing information and answering questions. This guarantees efficient responses for the new employee and allows for a smooth onboarding process. AI is also used to complete administrative tasks related to documentation, and to provide training.

When an employee’s offboarding process is under way, admin duties - such as the data management of exit interviews and the handling of access to online systems - can be dealt with by AI.

Training and development

AI tools can analyse a worker’s progress in real-time. So, they can assess and keep track of their performance, highlight their strengths and areas for improvement, and set goals in their training and development.

Many HR departments are using AI to create training programmes, which support individual employees based on their abilities and goals. Personalised training ensures workers remain engaged, in an era where worker engagement is a consistent challenge for employers.

Payroll administration

77% of those surveyed in Eightfold AI’s report responded that they are using AI in their payroll processing and benefits administration processes; with 42% reporting that they plan to increase their AI use in this area.

Using AI to support with payroll management can reduce instances of data duplication and human error, to guarantee a seamless process. AI chatbots can provide support to payroll users upon induction,  or exiting the company, and control and monitor access to the payroll system. AI can also be used to ensure compliance to local laws and regulations and analyse data to optimise payroll strategies.

Chatbots

Chatbots are used across a range of HR functions, from recruitment right through the employment lifecycle to offboarding. Chatbots can answer questions and provide information quickly and efficiently, eliminating the risk of human error or prolonged response times – therefore, streamlining processes at all stages of a worker’s employment.

ChatGTP and Google Bard are two highly popular chat bots accessible online. However, many organisations are now introducing their own internal chatbots, to provide organisation-specific information directly to their employees.

Chatbots are available 24/7 and this can be useful for organisations who have employees working around the world. Employing the use of chatbots can mean that HR professionals have more time to deal with specific issues and strategic work.

Mauve Group provides a comprehensive suite of global HR solutions. If you are interested in expanding your business abroad or hiring remote talent, contact our team of experts today.