Home Business Research The Impact of AI on Human Resource Management

The Impact of AI on Human Resource Management

We are living in a world where artificial intelligence (AI) is taking center stage. AI has accelerated tremendously in the last few years. It is sure that AI will become more involved in our day-to-day lives and will change the way we live now. AI is leading the technology. Businesses are investing significantly in AI, which is why artificial intelligence has become a catalyst for businesses. The impact of AI on human resource management is also significantly growing day by day.

If you think that AI disruption is limited to marketing, sales, and finance, think again: AI started to play a crucial role in human resources function. Although the technology is expected to grow by 9 percent by 2024, companies need more robust supporting structures as they grow, and the rise of AI in HR is becoming imperative. 

The HR department is one of the most important, data-dependent, and productive departments within an organization. AI has the potential to transform HR operations with relevant and in-depth analysis of various tasks. Many HR professionals have begun utilizing AI to deliver high productivity. Companies with a large employee base are turning to AI to cut down the cost associated with managing operations and improving employee engagement by being fair in employee screening and recruitment. Artificial intelligence can help HR focus on strategic business activities and allows them to automate HR operations in the following areas:

Transforming HR Operations with AI and Machine Learning

Interactive Interface 

This interface will streamline most HR activities and help employees know about policies, training, and payroll procedures. With speech recognition capabilities, AI can help with organizational needs in driving productivity

Machine Learning

Machine learning analyzes data to spot patterns and transforms actions accordingly. The insights into data enable HR practitioners to engage employees and hire new ones. Also, the technology uses historical records to suggest the optimum solutions to sort out conflicts.

Predictive Models

Predictive analytics help HR professionals with employee turnover, improve business performance, identify key improvement areas, and improve workforce culture. Organizations use predictive analytics to identify the key reasons for employee attrition by analyzing structured data and generating a score for employees based on the reasons for leaving their jobs.

AI and HR Tasks

AI can take HR to a new level by streamlining most of the HR tasks. Let us take a look at some of these tasks:


Filling hundreds to thousands of positions would often result in “resume overload”. Robots with AI software can help HRs in screening by identifying hard-to-find candidates, gathering employee information, and performing background checks. These tools can help candidates land the right job, freeing HR professionals from the challenging task of screening candidates.


Artificial intelligence can help make onboarding a self-service process, allowing them to connect directly with employees and easily coordinate with the workforce management team.

Video Interviews

Organizations are taking advantage of video conferencing tools for candidate evaluation. AI tools can use these videos to evaluate candidate’s skills, educational requirements, and more.

Intelligent Analysis

Most sectors such as telecom, banking, and healthcare are facing the challenge of employee retention. Many companies have started leveraging artificial intelligence and machine learning to capture feedback and better understand the status in real time. AI, a game-changer, can analyze patterns through geographic locations, emails, and conversations.

Simplifies Payroll 

AI bots can take care of payroll and expense processes efficiently. You don’t need to spend time filling out forms to document expenses. Just notify the bot, and your bills get approved by your manager.

Custom Training

HR management embraces modern training methods to manage a multi-generational workforce and tech-savvy millennials who expect instant solutions to their concerns. Moreover, different individuals have different learning styles, and to meet that requirement, HR can leverage AI to customize corporate training in Malaysia. AI captures employee data about a wide range of learning experiences and behavioral patterns. AI algorithms suggest training for the workforce and make training programs more rewarding. This way, you can modify training programs to make outcomes more effective.

Automating Repetitive, Low-value Added Tasks

AI offers an opportunity for HR professionals to automate repetitive and low-value tasks and increase the focus on strategic activities. For instance, HR spends time processing the onboarding steps of a new employee. Saving time in these areas can help HR departments focus on value-added tasks like mentoring and feedback. AI tools automate HR tasks such as benefits management, and employee management, so HR teams can focus on creative and strategic work that has a more significant impact on the company’s success. 

Will AI Replace Humans?

Over the past few years, AI has gradually improved the domain that was considered solely to be driven by humans – the HR department. Right from the screening process to enhancing employee engagement, AI has revolutionized critical business operations. AI is gradually spreading to SMBs as well. The introduction of AI has caused many professionals to think they could be replaced by technology. However, the fact is that AI and human intuition go hand in hand.

So, has AI transformed the HR Interface?

Artificial intelligence is making waves in every industry, and HR is no exception in 2018. With AI as a game-changer, there is just a great opportunity awaiting the HR world.

AI can process data that would go beyond human capabilities. However, the data-crunching and analytical aspects can validate numbers quickly and easily. Instead of replacing HR departments, AI tools can complement human skills and manage tasks to avoid multiple HR roles, thus freeing up human capital to focus on strategic and critical aspects of the business.

Experts feel AI can never replace empathy and intuition. HR department always needs a human to handle interpersonal conflicts using non-cognitive and reasoning skills. Artificial intelligence will unlock and amplify human potential but do not replace it. HR pros can focus on value-added tasks and less on routine tasks, unleashing the scope for better opportunities.

Author Bio:

Charles Harden is a content writer at SutiHR who frequently writes articles on Cloud Computing/SaaS, HR, Business, and ERP trends.

The basic goal of “The Business Goals” is to help the entrepreneurs’ community in achieving their goals and business objectives by providing the authentic and latest entrepreneurial ideas.



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