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AI in HR 2024: How AI is Transforming HR Tech

Artificial intelligence (AI) is rapidly transforming the world of HR. You're likely aware of the recent advancements in AI and its impact in certain industries. But do you know the part it plays in HR?  

In this guide we'll explore the exciting advancements of AI and HR, exploring:  

  • How AI is already adding value to human resources  
  • The benefits of AI in HR
  • What impacts is AI having in HR?
  • AI HR trends that we’re seeing in 2024
  • How HR professionals & businesses are implementing AI into their processes
  • How is HR AI going to change in the future?   

Whether you're an HR professional or simply curious about the future of work, this article will equip you to understand the AI landscape in HR, weigh the pros and cons, and navigate the use cases that are relevant to your organisation. 

By Josh Morris Solutions Consultant Posted 11/07/2024
Man smiling at laptop wearing a blue checked shirt

AI is already adding value to human resources

AI has become an undeniable force in HR. A recent Fosway Group report highlights this impact. The report states that:

83% of HR professionals are experiencing some level of AI influence on their HR function.  Almost 48% reported more than moderate impact. 

The roots of HR AI can be traced back to the early days of applicant tracking systems (ATS) in the 1980s. These early systems relied on basic keyword searches to match resumes with job descriptions.  

The late 90s and early 2000s saw the introduction of more sophisticated AI features. These features include skills assessments and basic skills-based filtering. However, a significant leap came around 2010 with the rise of cloud computing and big data. This allowed AI to analyse larger datasets and identify more complex patterns in candidate profiles, paving the way for the development of machine learning algorithms.   

Now, AI is actively streamlining everyday HR tasks. This frees up HR professionals to focus on more in-depth and strategic tasks. The value of AI in HR is clear: 

  • Increased efficiency
  • Cost savings
  • Improved decision-making 

However, some HR managers might still be on the fence. Is AI a helpful tool or a potential threat? Can it truly understand the human element of HR? These are valid concerns. Understanding AI's capabilities and integrating it into a comprehensive HR strategy is key. 

The benefits of AI in HR  

AI in HR isn't just a buzzword. It's delivering real results. Let's explore the benefits HR departments are seeing...

Administrative efficiencies  

AI enables HR professionals to automate several administrative tasks. This is a great way to free up your time, allowing you to focus on what truly matters: your people. By reducing administrative burden, you can pursue more strategic initiatives like talent development, creating a more impactful HR function. 

Key Takeaway: AI in HR can automate tasks such as onboarding, employee documentation, and scheduling. 

Saves Time

Imagine AI taking care of scheduling interviews, screening resumes, and managing employee data. This frees up valuable time to focus on strategic initiatives that matter. HR professionals could focus their time on: 

  • Developing impactful talent development programs 
  • Crafting targeted employee retention strategies 
  • Creating a positive company culture 

These initiatives boost employee engagement and drive long-term value for the organisation. 

Key Takeaway: AI in HR can automate routine tasks. This allows HR to focus on strategic initiatives and maximising their impact. 

Enhanced engagement

Keeping employees happy and engaged is critical for any organisation's success. AI can be a powerful tool for improving employee engagement. Some HR systems utilise AI-powered chatbots to answer employee questions 24/7. Others use sentiment analysis tools that identify potential issues before they escalate. 

AI can also automate feedback forms, freeing up HR to address concerns directly. A personalised approach creates a sense of value and appreciation in employees. This can lead to higher engagement and satisfaction amongst teams.  

Key Takeaway: AI in HR can automate tasks like feedback and training recommendations. This allows HR to focus on personalised employee engagement strategies. 

Data-driven decision making

In today's data-driven world, gut feelings don't cut it anymore. AI empowers you to make informed decisions based on real-time data and insights. HR reporting software provides access to detailed analytics on employee performance and engagement levels. AI can analyse these vast amounts of data to identify trends and create detailed reports instantly. This data-driven approach allows HR to have the insight they need at their fingertips to: 

  • Develop targeted programs 
  • Optimise talent management strategies 
  • Make more informed decisions for the organisation 

Key Takeaway: AI in HR software can provide data-driven insights to support strategic decision making in HR. 

What is the current impact of AI on HR?

We've explored the transformative potential of AI and HR, but it's important to acknowledge the potential downsides as well. While AI offers a wealth of benefits, ethical considerations must be front and centre. One key concern is the vast amount of employee data that AI systems handle. Security breaches pose a significant risk, so organisations must ensure robust data protection measures are in place.  

AI's data-driven approach minimises the risk of errors by delivering factual results based on the information it's trained on. This translates to more accurate insights and efficient processes for HR. However, remember that responsible and ethical use remains paramount. HR professionals play a crucial role in ensuring these AI systems are implemented with fairness and transparency at the forefront. 

So, how can HR navigate these ethical concerns? Here are two key strategies: 

Implement an AI workplace policy:  

Develop a clear policy outlining the responsible use of AI in your HR department. This policy should address data security, employee privacy, and how AI is used in decision-making processes.  

Invest in AI Training:   

AI is a powerful tool, but true mastery comes from skilled users. Invest in training programs that go beyond the basics. Equip your HR team with the knowledge to leverage AI effectively and empower them to become true AI champions within HR. 

Imagine HR professionals who can confidently navigate AI features, interpret data insights, and ensure fair and ethical application throughout your HR processes. By investing in their knowledge and skills, you unlock the full potential of AI and HR and empower your team to become more efficient and strategic. 

AI HR trends that we’re seeing

With AI firmly establishing itself within HR, exciting new AI HR trends and predictions are emerging. Let's delve into some of the most significant developments shaping the future of AI in HR.

AI enhanced recruitment software 

New AI-powered recruitment software goes beyond basic Applicant Tracking Systems (ATS). These systems use clever algorithms to do three things: 

  • Automate tasks 
  • Find the best matches for your jobs 
  • Check for bias.  

This software analyses resumes to assess skills, experience, and even cultural fit. The result? Streamlined recruitment, access to top talent, and ultimately, better hiring decisions for you. 

Customised learning experiences

The future of learning and development is personalised. AI powered systems can analyse employee's performance data, learning style and career goals. This creates a customised learning experience, recommending effective learning modules and development pathway. Not only does this keep employees engaged, but also ensures they are developing skills necessary for their role. 

AI isn't just transforming HR – it's also making waves in the eLearning industry. 

AI powered HR assistants 

Imagine a friendly virtual assistant available 24/7 to answer your employees' HR questions. That's the power of AI powered HR assistants! They can be integrated into your HR software or internal communication platforms. This provides an instant support to employees on a variety of topics, such as: 

  • Benefits packages 
  • Guide employees through the onboarding process 
  • Field basic payroll inquiries 

For example: An employee wants to know how much of their annual leave entitlement remains. They log into their HRIS and ask their HR chatbot 'How much annual leave do I have left?'  

The AI powered HR assistant can then provide them with the answer. This frees up HR professionals from repetitive tasks and empowers employees to find the information they need quickly and easily. 

AI survey analytics  

AI survey analytics is revolutionising the way HR gathers and interprets employee feedback. Gone are the days of manually sifting through lots of survey data. AI can analyse existing HR data, such as performance reviews, alongside survey responses. This allows AI to identify hidden patterns and trends that might go unnoticed by the human eye.  

For example, AI may uncover a correlation between low engagement scores and a specific department. These insights empower HR to proactively address potential issues. 

How HR professionals & businesses are implementing AI into their processes

The exciting world of AI in HR is being implemented by organisations across the world. However, the pace of adoption varies. Some businesses are taking a cautious, step-by-step approach, while others are diving headfirst into the transformative potential of AI. 

Starting small: HR chatbots and basic AI tools 

For HR professionals looking to ease into AI, there are several entry points. AI powered HR assistants are a popular starting point. These offer user-friendly interface for employees to access information and answers quickly. By utilising AI powered HR assistants in HR you can delegate routine queries, enabling all employees to self-serve. These assistants can answer basic benefits inquiries. This frees up HR professionals' time and empower employees with 24/7 access to essential information. 

AI chatbox example

Taking it up a notch: AI-powered recruitment & HR software 

Many organisations are taking a more comprehensive approach by implementing AI-powered HR software with advanced analytics and reporting capabilities. This allows them to unlock a deeper understanding of their workforce. Imagine AI that can analyse a vast array of HR data points. This could help you to: 

  • Understand trends amongst employees  
  • Identify root causes of workforce challenges 
  • Spot projected risks  
  • Gain actionable insights to target strategy and improvements 
  • Demonstrate impact and ROI of people decision 

This data-driven approach allows you to identify trends and predict future outcomes. It also allows you to make informed decisions about: 

  • Talent management: Identify high-potential employees and at-risk performers. 
  • Learning & development: Personalise training programs based on individual needs and skills gaps.
  • Succession planning: Develop a pipeline of future leaders based on performance and potential through succession planning. 
  • Compensation & benefits: Benchmark your offerings against market data and employee sentiment. 

With AI-powered analytics, you can move beyond basic reporting and become more strategic. 

Step-by-step integration: A practical approach for HR professionals 

Integrating AI into your HR processes doesn't have to be overwhelming. Here's a practical step-by-step process to consider: 

  1. Identify areas for improvement: Start by evaluating your current HR processes. Are there areas that are repetitive, time-consuming, or prone to human error? Focusing on these pain points will help you identify where AI can offer the most value. 

  2. Research HR AI software and features available: Explore the variety of HR software solutions available. Consider features and functionalities aligned with your specific needs. At the Access Group, we offer a comprehensive suite of HR solutions that leverage AI.  

  3. Communication and feedback: Transparency is key! As you integrate AI into HR processes, keep the lines of communication open with your employees. Clearly explain the upcoming changes, addressing any anxieties they might have about AI in the workplace. Emphasise that you value their feedback. By encouraging open communication, you can ensure a smooth transition, maximise employee buy-in, and continuously refine your AI implementation to optimise its value and efficiency for everyone. 

By following these steps, HR professionals can confidently navigate the exciting world of AI. 

How is AI and HR going to change in the future?

The future of HR AI is brimming with possibilities. We've only scratched the surface of its potential. As AI continues to evolve, we can expect even greater levels of automation, personalisation, and data-driven insights.   

In the future, we can expect AI to play a more prominent role in onboarding. AI-powered learning platforms will become more sophisticated. These platforms will create pathways to individual learning styles and career aspirations.  

As a leading HR software provider, The Access Group is at the forefront of AI innovation. We're constantly developing new functionalities that use powerful AI and advanced analytics. This allows you to streamline HR processes and unlock deeper insights from your data. 

By staying informed on the latest advancements and implementing AI, HR can play an even greater role in long term business success. 

Level up your HR Strategy with AI

The future of HR is shaped by intelligence, and AI is leading the charge. Gone are the days of sifting through mountains of data or navigating complex software. AI-enabled experiences will transform how HR professionals work, offering intuitive and personalised interactions. Simply ask questions like "what is our flexible working policy?" and get instant answers alongside relevant documentation stored within your HR system. As AI continues to evolve, we can expect even more transformative capabilities. This solidifies HR's position as a central driver of business success in the years to come. 

Want to know what Access People’s AI powered HR can do for your business?

Book a demo, or download our helpful HR software brochure.

By Josh Morris

Solutions Consultant

Josh Morris is a Solutions Consultant in the Access People Team. Having worked in the team for over four years, Josh delivers in-depth demonstrations to our customers and clients, surrounding all of our great products within the People Division.